INTEGRATED ANNUAL
REPORT 2023
We live in an increasingly interconnected world where the
companies that will continue to thrive in the long run will be
those able to act collectively, creating and sharing value with all
stakeholders. This is what the graphic design of the Enel Group's
Corporate Reporting expresses through the development of
connected and balanced forms. Elements inspired by nature,
whose movement offers a narration of harmony, growth and
evolution.
INTEGRATED ANNUAL
REPORT 2023
Paolo Scaroni
Chairman
Flavio Cattaneo
Chief Executive Officer
and General Manager
LETTER TO
SHAREHOLDERS
AND OTHER
STAKEHOLDERS
Dear shareholders and stakeholders,
Last year was marked by an important change in the
management of the Enel Group, with the election of the
entire Board of Directors and the appointment of the new
Chairman in the person of Paolo Scaroni. The Board of
Directors in turn entrusted the position of Chief Executive
Officer to Flavio Cattaneo.
The extraordinary events that have impacted the global
geopolitical and macroeconomic environment have
generated unprecedented volatility in the energy system
and wrought structural changes in the energy market.
In this context, our new management has delineated
the new strategy underpinning the Group’s 2024-
2026 Business Plan, which envisages: (i) the rigorous
allocation of resources to boost the return on capital
employed, together with the balancing of risk and return
in investment decisions and models; (ii) greater efficiency
and effectiveness in processes and organizational
structure, seeking to increase accountability and free up
financial resources to drive the industrial development
of the Group; and (iii) financial and environmental
sustainability, confirming our commitments to the energy
transition and the electrification of energy consumption,
while ensuring a more balanced and sustainable financial
structure.
In 2023, Enel confirmed its position as the largest private
renewable power generator in the world, with 63 GW of
managed capacity (including our growing and necessary
battery energy storage capacity) and the largest private
electricity distribution company at the global level, with
over 70 million end users served by grids that will have
to deliver increasing levels of resilience and digitalization
to support the electrification of energy consumption.
Furthermore, we have the largest customer base among
private companies, with some 61 million electricity and
gas customers.
The Group’s leadership in sustainability has once again
been recognized worldwide, underscored by its constant
presence in various major sustainability rankings and
indices.
4
Integrated Annual Report 2023
70.3
million
End users
63
GW
Renewables
capacity managed
The macroeconomic environment
Performance
In 2023, global growth proved more resilient than expect-
ed at the beginning of the year, thanks to a faster-than-ex-
pected reduction in inflation in many economies, support-
ed by the gradual normalization of energy commodity
prices and the gradual easing of supply chain bottlenecks.
Many governments’ energy support programs also helped
mitigate the impacts of the turbulence on household in-
comes and support productive activity in many econo-
mies.
However, the results differed among countries: growth
was solid in the United States, sustained by the recovery in
public and private spending, and in Latin America, where
inflation slowed and political and labor market conditions
improved. Conversely, much of the euro area experienced
an abrupt economic slowdown, reflecting both the re-
strictive monetary policy stance adopted by the European
Central Bank in order to counter inflationary pressures and
weak foreign demand, also accompanied by challenging
geopolitical developments in the Middle East.
With regard to the energy industry, in 2023, the Europe-
an gas market displayed a significant downward trend in
prices, thanks to high levels of storage and declining de-
mand, with the average reduction in TTF (Title Transfer Fa-
cility) prices exceeding 65% compared with 2022, reach-
ing about €35/MWh in the last quarter of 2023. Coal-fired
generation also declined, primarily discouraged by the rise
in CO2 prices within the ETS (Emissions Trading System),
despite coal prices plunging by 55.5% to an average of
$129/ton.
Compared with 2022, electricity prices in Italy and Spain
fell sharply, reflecting the decline in energy commodi-
ty prices and, in part, growing renewables generation.
More specifically, electricity prices in Italy decreased by
58% compared with the previous year, while in Spain they
dropped by 48%.
In the metals sector, economic weakness adversely im-
pacted the prices of aluminum and copper, with declines
of 16.6% and 3.8% respectively compared with 2022. Met-
als associated with renewable energy technologies, such
as lithium and polysilicon, experienced an even steeper
slide in prices as demand contracted.
Thanks to management actions and our focus on the core
business, the Group closed the 2023 financial year having
achieved our full-year targets as revised upwards in the
3rd Quarter and announced to the market, with ordinary
EBITDA of €22.0 billion and an ordinary net profit of €6.5
billion, up 12% and about 21%, respectively, compared with
the previous year. The dividend that will be proposed to
shareholders for 2023 amounts to €0.43 per share, 7.5%
higher than that for 2022. In terms of cash generation,
FFO in 2023 amounted to about €14.8 billion, up more
than 60% compared with 2022. Net debt is equal to €60.2
billion, with the net debt to ordinary EBITDA ratio improv-
ing from 3.1x to 2.7x. This last indicator does not yet reflect
the effects of the proceeds generated by divestments,
already announced to investors and subject to binding
agreements between the parties, carried out in 2023 as
part of the extraordinary plan to reduce the Group’s finan-
cial debt. Recall that the Plan approved in 2022 to restore
a sustainable and balanced Group financial structure pro-
vided for the sale of Group investments and other assets
of over €12 billion in 2023 alone.
Main events
In 2023, the Group confirmed its hard-won technologi-
cal leadership in renewables generation and distribution
grids.
On the power generation front, in 2023 Enel built out
about 5.3 GW of new renewables capacity (including 934
MW of battery storage), reaching a total of approximately
63 GW of installed capacity and a volume of renewables
generation of 140 TWh/year. The capacity we operate is
also supported by a pipeline of projects in the advanced
development phase of up to 160 GW.
In the power distribution segment, our strong commit-
ment to modernizing and digitalizing electricity grids
continues, both to increase their resilience to increasingly
extreme and frequent climate events and to make them
ready to play the role of enablers of the energy transition:
during the year, Enel Grids activated almost 540,000 new
Letter to shareholders and other stakeholders
5
producer and prosumer(1) connections globally, adding
about 8 GW of distributed renewables capacity connect-
ed to our grids, reaching a total of some 68 GW of capac-
ity from approximately 2 million producer and prosumer
connections.
The development of a portfolio of products dedicated to
residential consumers, businesses and municipalities also
confirmed the Group’s leading role in fostering the energy
transition and the electrification of consumption.
In 2023, Enel X Global Retail operated at full capacity with a
new, more tightly integrated structure to reap the benefits
of bundled packages of electricity, gas, electric mobility,
energy efficiency and ultra-fast connectivity services. An
example of this is the “Formidabile” offer, launched in Italy
at the end of October 2023 and in Spain at the beginning
of 2024. Our commitment to improving the customer ex-
perience also continues: in 2023 commercial complaints
decreased by 12%(2) compared with the previous year, and
in February the German Institute for Quality and Finance
awarded Enel Energia its “Nr. 1 in Service” quality seal
based on customer satisfaction in the electricity and gas
sector, with a score of 74.2%, well above the category av-
erage of 55.9%.
The new Enel Global Service Function, which groups to-
gether Global Information & Communication Technolo-
gies, Global Procurement, Global Customer Operations
and the newly established Workforce Evolution, contin-
ued the Group’s digital transformation path, focusing on
solutions and advanced technologies, such as artificial
intelligence and quantum computing solutions. Thanks in
part to the key skills we have developed internally, to date
we have over 500 traditional and generative artificial in-
telligence applications in operation or in the development
phase, mainly to support the Generation, Distribution and
Retail businesses. Furthermore, the Workforce Evolution
unit will promote the evolution of employee skills consis-
tent with these new technological tools and with the stra-
tegic repositioning of the Group, in order to foster greater
internal control over higher value activities and guarantee
our distinctive positioning in the markets and sectors in
which the Group is present.
The Group continues to follow the decarbonization road-
map in line with limiting global warming to below 1.5 ºC. In
2023, absolute direct and indirect greenhouse gas emis-
sions along the Group’s entire value chain, equal to 94.3
MtCO2eq, declined by 26.3% compared with 2022, and
remain in line with the targets for 2030 and 2040 certified
by the Science Based Targets initiative (SBTi).
The financial instruments employed by the Group are also
closely linked to sustainability objectives. In 2023, Enel
Finance International NV issued euro-denominated sus-
tainability-linked bonds in the amount of €1.5 billion, us-
ing multiple key performance indicators (KPIs) to further
strengthen Enel’s commitment in accelerating the energy
transition. For the first time, in fact, a tranche of a publicly
placed bond involved the combination of a KPI linked to
the EU taxonomy with a KPI linked to the United Nations
Sustainable Development Goals (SDGs), while the other
tranche of the bond was linked to two KPIs associated with
the Group’s full decarbonization trajectory through the re-
duction of direct and indirect greenhouse gas emissions.
These bond issues have enabled us to achieve a ratio
between the sources of sustainable financing and the
Group’s total gross debt of approximately 64%, a level that
will rise further over the period of the Plan.
In parallel, in order to reduce debt and strengthen the
Group’s financial structure, our new management team
has revised the divestment plan referred to earlier with a
view to portfolio rotation focused on maximizing the value
of assets. In this context, the Argentine thermal genera-
tion companies Enel Generación Costanera SA and Inver-
sora Dock Sud SA were sold during the year, and agree-
ments were signed for the disposal of the Peruvian elec-
tricity distribution and supply company Enel Distribución
Perú SAA, the advanced energy services company Enel X
Perú SAC and the electricity generator Enel Generación
Perú SAA. The divestment of all the investments held by
the Group in Romania was also completed. Asset rotation
transactions were also completed, including the sale of a
portfolio of photovoltaic plants in Chile (416 MW) and the
entire geothermal portfolio in the United States, as well
as several small solar plants in that country. Finally, in line
with the strategy presented to investors on our steward-
ship approach in non-core countries, acting through the
subsidiary Enel Green Power SpA we completed the sale
of 50% of the two companies that own all of the Group’s
renewables operations in Australia to INPEX Corporation,
while the sale of 50% of Enel Green Power Hellas to Mac-
quarie Asset Management was finalized.
(1)
“Prosumer”, a contraction of “producer” and “consumer”, is an individual or firm that not only consumes goods and services but also produces them, such
as, for example, by installing photovoltaic panels to generate electricity.
(2) Reduction in new complaints for each 10,000 customers.
6
Integrated Annual Report 2023
Strategy and forecasts
for 2024-2026
Short-term global uncertainties have forced electricity
companies to increase their flexibility and improve the vis-
ibility and predictability of prospective returns.
In this context, over the 2024-2026 Plan period the Enel
Group plans to focus on:
• profitability, flexibility and resilience through selective
capital allocation aimed at optimizing the Group’s risk/
return profile;
• efficiency and effectiveness as drivers of the Group’s
operations, based on process simplification, a leaner
organization with defined responsibilities and a focus
on core geographies in which the Group has an inte-
grated position (Italy, Spain, Brazil, Chile, Colombia and
the United States), as well as boosting operational effi-
ciency in order to maximize cash generation and offset
inflationary pressures and the higher cost of capital;
• financial and environmental sustainability to pursue val-
ue creation with a balance and solid financial structure,
addressing the challenges of climate change.
In this scenario, regulated businesses will be at the center
of the Group’s strategy, with a concentration of invest-
ment in geographical areas with a clear and predictable
regulatory framework as well as stable macroeconomic
environments. Investment decisions on renewables will
be more selective, seeking to achieve a positioning that
maximizes returns and mitigates risks at the same time.
Finally, the Group plans to optimize its customer portfolio
and end-to-end processes, enhancing efficiency in cus-
tomer acquisition and management, improving customer
loyalty through bundled offers and promoting the electri-
fication of energy consumption. The generation and retail
businesses will be managed in a more integrated manner,
with a flexible approach to sourcing strategies in order to
maximize profitability along the entire value chain.
In the 2024-2026 period, the Group’s gross investments
will amount to €35.8 billion, of which €18.6 billion will be
allocated to Grids, €12.1 billion to Renewables and €3 bil-
lion to Customers.
Thanks to the implementation of a less capital- and
risk-intensive business model, investments will have a
smaller cash requirement, with expected net investments
of about €26.2 billion thanks to access to European grants
and financing (up to €3.5 billion) and the use of a diversi-
fied co-investment model for renewables projects (a total
of about €6.1 billion).
Investments in distribution grids will increase their ef-
ficiency, flexibility and resilience: more than half will be
(3) Capacity of the system to carry additional power.
(4) Upgrading a plant in order to increase efficiency, capacity and output.
allocated to grid strengthening, remote operation, auto-
mation and digitalization projects in order to deliver high
standards of service quality and reduce power losses. In
addition to managing assets, the remainder will be allo-
cated to expanding hosting capacity(3) to meet customer
demand for new connections and encourage the integra-
tion of distributed generation from renewable resources,
all to support the energy transition and the electrification
of final energy consumption.
Investments in renewables will add 13.4 GW of new capac-
ity, bringing the Group’s total to 73 GW (including energy
storage systems) by 2026, with the share of zero-emis-
sions generation growing from 75% to about 86%.
The push for innovation will continue to be a strategic
driver: in generation, it will improve plant performance
through the introduction of new technologies along the
entire value chain. The use of repowering(4) and automa-
tion is also expected to increase the efficiency of plants
and processes, as will testing of new battery technologies
and energy storage systems, whose role will be increas-
ingly important in ensuring the flexibility of electrical sys-
tems. In grids, digitalization, new automation models and
the introduction of new technologies will enable new ap-
proaches to remuneration.
Finally, the Group will continue to pursue the evolution of
new technologies that will mature over the medium and
long term, such as hydrogen and new small and modular
nuclear fission reactors or fusion power.
On the environmental sustainability front, the Group in-
tends to continue reducing its direct and indirect green-
house gas emissions by achieving the zero-emissions tar-
get for all Scopes by 2040, in line with the Paris Agreement
and with the 1.5 ºC scenario, as certified by the SBTi.
Group ordinary EBITDA is expected to increase to between
€23.6 and 24.3 billion in 2026, with a CAGR (Compound
Average Growth Rate) of approximately 5%, while our am-
bition for Group ordinary profit is a rise to between €7.1
and 7.3 billion in 2026, with a CAGR of about 6% compared
with 2023, net of differences in scope.
The organic and structural path of reducing the Group’s
net debt will enable us to achieve a ratio of net debt to
EBITDA of about 2.3 by 2026, down from over 3 at the end
of 2022.
Finally, as regards shareholder remuneration, the Group
has decided to adopt a simple and attractive dividend
policy with a minimum fixed DPS (dividend per share) of
€0.43 for the 2024-2026 period, with a potential increase
up to a payout of 70% of ordinary profit if cash neutrality
is achieved.
Letter to shareholders and other stakeholders
7
CONTENTS
Letter to shareholders and other stakeholders
Basis of Presentation
4
10
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Income Statement
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Statement of Comprehensive Income
REPORT
ON OPERATIONS
1.
ENEL
GROUP
Highlights
Value creation and the
business model
Enel around the world
17
19
23
27
2.
GOVERNANCE
29
Enel shareholders
Corporate boards
The Enel corporate
governance system
Enel organizational model
Incentive system
Values and pillars
of corporate ethics
30
32
34
41
43
45
GROUP STRATEGY
& RISK
MANAGEMENT
49
3.
Reference scenario
Group strategy
Strategic Plan
Risk management
50
78
79
92
5.
OUTLOOK
267
Outlook
Other information
268
269
CONSOLIDATED
FINANCIAL
STATEMENTS
4.
GROUP
PERFORMANCE
131
CONSOLIDATED
FINANCIAL
STATEMENTS
273
6.
Definition of performance measures
132
Consolidated financial statements
274
Performance of the Group
Value generated and distributed
for stakeholders
Analysis of the Group’s financial
position and structure
Performance by primary segment
(Business Line) and secondary
segment (Geographical Area)
Enel shares
Innovation
People centricity
World Economic Forum (WEF)
European Union taxonomy
Significant events in 2023
Regulatory and rate issues
135
149
150
157
190
192
196
208
210
235
239
Notes to the consolidated
financial statements
281
Declaration of the Chief Executive
Officer and the officer in charge of
financial reporting of the Enel Group 452
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, 2023
453
468
474
9
BASIS OF
PRESENTATION
Enel’s approach to corporate reporting
The Integrated Annual Report of the Enel Group, consist-
ing of the Report on Operations inspired by integrated
thinking and the consolidated financial statements pre-
pared in accordance with the IFRS/IAS international ac-
counting standards, represents the “core” document of
the Enel Group’s integrated corporate reporting system,
based on the transparency, effectiveness and account-
ability of information.
The objective of the Enel’s Integrated Annual Report is to
describe its strategic thinking and to present its results
and the medium- and long-term outlook for an Integrat-
ed Businesses 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 stakeholders in a con-
nected, logical and structured manner and developing its
own concept for presenting economic, social, environ-
mental and governance information, in accordance with
specific regulations, recommendations and international
best practices.
This “Core Report” seeks to provide a holistic view of the
Group, its business model and the related medium/long-
term value creation process, including the qualitative and
quantitative financial and sustainability information con-
sidered most relevant on the basis of a materiality assess-
ment that also considers the expectations of 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.
10
Integrated Annual Report 2023
nected, logical and structured manner and developing its
own concept for presenting economic, social, environ-
mental and governance information, in accordance with
specific regulations, recommendations and international
best practices.
This “Core Report” seeks to provide a holistic view of the
Group, its business model and the related medium/long-
term value creation process, including the qualitative and
quantitative financial and sustainability information con-
sidered most relevant on the basis of a materiality assess-
ment that also considers the expectations of 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.
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
2023
REPORT ON CORPORATE GOVERNANCE
AND 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
REPORT ON THE REMUNERATION POLICY
This describes the Enel remuneration system, as
provided for by Article 123-ter of the Consolidated
Law on Financial Intermediation
Basis of Presentation
11
The Integrated Annual Report and materiality analysis
As an expression of integrated thinking, the Integrated
Annual 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 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.
The financial and sustainability 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)
(i.e. “Affordable and Clean Energy“ (SDG 7), “Industry, In-
novation and Infrastructure“ (SDG 9), “Sustainable Cities
and Communities“ (SDG 11) and “Climate Action“ (SDG 13))
and on the activities implemented to contribute to their
achievement in order to meet the expectations of the
main stakeholders in the Integrated Annual Report.
The Enel Group also performs a double materiality analysis,
details on which are available in 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 sustainability reporting.
For the purposes of preparing sustainability information,
especially quantitative information, the Group mainly ap-
plies the provisions of the Global Reporting Initiative (GRI)
standards, in line with the Sustainability Report, and the
“Aspects” of the GRI supplement dedicated to the Electric
Utilities sector (“Electric Utilities Sector Disclosures”). Con-
sideration was also given to the indicators proposed in the
white paper “Toward Common Metrics and Consistent Re-
porting of Sustainable Value Creation” of the World Eco-
nomic Forum (WEF), the details of which are highlighted in
the section on the WEF and in the “Group Performance”
chapter of this report.
12
Integrated Annual Report 2023
The Report on Operations is organized into the following
sections:
1.
GOVERNANCE
The section discusses the Group΄s governance bodies, its
organizational model and its involvement in sustainability
and climate change policies
REPORT ON
OPERATIONS
4.
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
3.
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
2.
GROUP STRATEGY & 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
Taking account of the results of the priority matrix and the
significant climate impacts on the Group’s value creation
process, each chapter (Governance, Group Strategy & Risk
Management, Group Performance and Outlook) includes
information relating to climate change as proposed by the
Task Force on Climate-related Financial Disclosures (TCFD),(5)
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”, as updated
in July 2023 with the issue of the educational material “Effects
of climate-related matters on financial statements”. These
recommendations emphasize that climate-related risk must
be considered in management’s assumptions used 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 sus-
tainability contributes to enhancing current and future finan-
cial performance, clear and consistent relationships between
key financial and sustainability information have been identi-
fied and presented in the Report on Operations for each of
the four sections indicated above.
In addition, Enel’s Integrated Annual Report has been pub-
lished in the “Investors” section of the Enel website (www.
enel.com).
Connectivity matrix
In order to provide an integrated representation of the
Group and represent the connectivity of information, the
Enel Group has prepared a matrix delineating the relation-
ships between the governance, Group strategy and risk
management, Group performance and the outlook for
each business line.
(5)
In 2023, the Financial Stability Board announced that the work of the TCFD was completed with the issue of international sustainability reporting standards
IFRS S1 and IFRS S2, which were published at the end of June 2023 by the International Sustainability Standards Board (ISSB).
Basis of Presentation
13
ENEL
BUSINESSES
VALUE CREATION AND
THE BUSINESS MODEL
GOVERNANCE
GROUP STRATEGY
RISK MANAGEMENT
GROUP PERFORMANCE
OUTLOOK
Enel Green Power and
Thermal Generation
& Global Energy
and Commodity Management
(p. 42)
ENEL GREEN POWER AND
THERMAL GENERATION
&
GLOBAL ENERGY AND
COMMODY MANAGEMENT
• Enel shareholders (p. 30)
• Corporate boards (p. 32)
• The Enel corporate
governance system (p. 34)
• Enel organizational model
(p. 41)
Enel X Global Retail (p. 42)
• Incentive system (p. 43)
• Values and pillars of
corporate ethics (p. 45)
ENEL X
GLOBAL RETAIL
Determination of strategy (p. 78)
I.
Strategic Dialogue
II. Strategic Planning
III. Long-term positioning
IV. Analysis of ESG factors and assessment
of materiality in the fi eld of sustainability
Strategic Plan (p. 79)
• Response to the current climate (p. 79):
aff ordability, security and sustainability
• The three pillars (p. 79):
I. profi tability, fl exibility and resilience
II. effi ciency and eff ectiveness
III. fi nancial and environmental sustainability
ENEL GRIDS
AND INNOVABILITY
Enel Grids (p. 42)
14
Integrated Annual Report 2023
Value generated and distributed for stakeholders (p. 149)
ENEL GREEN POWER (p. 169)
Operations
• Net electricity generation
• Net effi cient installed capacity
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Strategic risks (p. 98)
• Legislative and regulatory
developments
THERMAL GENERATION AND TRADING (p. 163)
Operations
• Net electricity generation
• Net effi cient installed capacity
• Macroeconomic and geopolitical
Perf ormance
trends
• Revenue from thermal and nuclear generation
• Revenue
• Risks and strategic opport unities
associated with climate change
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
• Competitive environment
Financial risks (p. 120)
• Interest rate
• Commodity
• Currency
• Credit and counterpart y
• Liquidity
Digital technology risks (p. 123)
• Cyber security
• Digitalization, IT eff ectiveness and
service continuity
Operational risks (p. 124)
• Health and safety
• Environment
• Procurement, logistics and supply
chain
• People and organization
Compliance risks (p. 128)
• Data protection
2024-2026 Strategic Plan (p. 266)
• Profi tability, fl exibility and resilience
through selective capital allocation, aimed at
optimizing the Group’s risk/return profi le.
• Effi ciency and eff ectiveness
as drivers of the Group’s operations,
based on process simplifi cation, a leaner
organization focused on core geographies,
and streamlined costs.
• Financial and environmental sustainability
to pursue value creation in addressing the
challenges of climate change.
Value generated and distributed for stakeholders (p. 149)
END-USER MARKETS (p. 181)
• Demand response, storage and lighting points
Operations
• Electricity sales
• Natural gas sales
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
2024 (p. 266)
• Investment in distribution grids
focusing on geographical areas that have
fair and transparent regulatory frameworks
in place, in part icular in Italy.
• Selective investment in renewables,
aimed at maximizing the return on capital
employed and minimizing risks.
• Active management of the customer base
through bundled multi-play off ers.
Financial and perf ormance targets
underpinning the 2024-2026 Plan (p. 266)
Value generated and distributed for stakeholders (p. 149)
ENEL GRIDS (p. 175)
Operations
• Electricity distribution and transmission grid
• Average frequency of interruptions per customer
• Average duration of interruptions per customer
• Grid losses
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
ENEL
BUSINESSES
VALUE CREATION AND
THE BUSINESS MODEL
GOVERNANCE
GROUP STRATEGY
RISK MANAGEMENT
GROUP PERFORMANCE
OUTLOOK
Enel Green Power and
Thermal Generation
& Global Energy
and Commodity Management
(p. 42)
ENEL GREEN POWER AND
THERMAL GENERATION
&
GLOBAL ENERGY AND
COMMODY MANAGEMENT
• Enel shareholders (p. 30)
• Corporate boards (p. 32)
• The Enel corporate
governance system (p. 34)
• Enel organizational model
(p. 41)
• Values and pillars of
corporate ethics (p. 45)
Determination of strategy (p. 78)
I.
Strategic Dialogue
II. Strategic Planning
III. Long-term positioning
IV. Analysis of ESG factors and assessment
of materiality in the fi eld of sustainability
Strategic Plan (p. 79)
• Response to the current climate (p. 79):
aff ordability, security and sustainability
• The three pillars (p. 79):
I. profi tability, fl exibility and resilience
II. effi ciency and eff ectiveness
III. fi nancial and environmental sustainability
Enel X Global Retail (p. 42)
• Incentive system (p. 43)
ENEL X
GLOBAL RETAIL
ENEL GRIDS
AND INNOVABILITY
Enel Grids (p. 42)
Strategic risks (p. 98)
• Legislative and regulatory
developments
• Macroeconomic and geopolitical
trends
• Risks and strategic opport unities
associated with climate change
• Competitive environment
Financial risks (p. 120)
• Interest rate
• Commodity
• Currency
• Credit and counterpart y
• Liquidity
Digital technology risks (p. 123)
• Cyber security
• Digitalization, IT eff ectiveness and
service continuity
Operational risks (p. 124)
• Health and safety
• Environment
• Procurement, logistics and supply
chain
• People and organization
Compliance risks (p. 128)
• Data protection
Value generated and distributed for stakeholders (p. 149)
ENEL GREEN POWER (p. 169)
Operations
• Net electricity generation
• Net effi cient installed capacity
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
THERMAL GENERATION AND TRADING (p. 163)
Operations
• Net electricity generation
• Net effi cient installed capacity
Perf ormance
• Revenue from thermal and nuclear generation
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
(p. 268)
2024-2026 Strategic Plan (p. 266)
• Profi tability, fl exibility and resilience
through selective capital allocation, aimed at
optimizing the Group’s risk/return profi le.
• Effi ciency and eff ectiveness
as drivers of the Group’s operations,
based on process simplifi cation, a leaner
organization focused on core geographies,
and streamlined costs.
• Financial and environmental sustainability
to pursue value creation in addressing the
challenges of climate change.
Value generated and distributed for stakeholders (p. 149)
END-USER MARKETS (p. 181)
Operations
• Electricity sales
• Natural gas sales
• Demand response, storage and lighting points
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
2024 (p. 266)
(p. 268)
• Investment in distribution grids
focusing on geographical areas that have
fair and transparent regulatory frameworks
in place, in part icular in Italy.
• Selective investment in renewables,
aimed at maximizing the return on capital
employed and minimizing risks.
• Active management of the customer base
through bundled multi-play off ers.
Financial and perf ormance targets
(p. 268)
underpinning the 2024-2026 Plan (p. 266)
Value generated and distributed for stakeholders (p. 149)
ENEL GRIDS (p. 175)
Operations
• Electricity distribution and transmission grid
• Average frequency of interruptions per customer
• Average duration of interruptions per customer
• Grid losses
Perf ormance
• Revenue
• Ordinary gross operating profi t/(loss)
• Ordinary operating profi t/(loss)
• Capital expenditure
Innovation (p. 192)
People centricity (p. 196)
Basis of Presentation
15
16
Integrated Annual Report 2023
REPORT
ON OPERATIONS
1.
ENEL
GROUP
● Technological leadership
In 2023, the Group confirmed its hard-won technological leadership
in renewables generation and distribution grids.
On the power generation front, in 2023 Enel built out about 5.3 GW
of new renewables capacity (including 934 MW of battery storage),
reaching a total of approximately 63 GW of installed capacity and a
volume of renewables generation of 140 TWh/year.
In the power distribution segment, our strong commitment to
modernizing and digitalizing electricity grids continues, both to
increase their resilience to increasingly extreme and frequent
climate events and to make them ready to play the role of enablers
of the energy transition.
● The value creation process
The integrated presentation of financial and sustainability
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.
● Business model
Enel’s business model is conceived to maximize long-term value
creation for all stakeholders through the achievement of Group
growth, development and efficiency objectives while at the same
time minimizing business risks.
In order to fully benefit from all the opportunities emerging in the
market environment in which it operates, the Group has identified
three different business models (Ownership, Partnership and
Stewardship) it can deploy depending on the geographical area and
expected return.
17
18
Integrated Annual Report 2023
HIGHLIGHTS
HIGHLIGHTS
PERFORMANCE
REVENUE
-32.0%
€95,565 million
€140,517 in 2022
GROSS OPERATING PROFIT
+1.7%
€20,255 million
€19,918 in 2022
ORDINARY GROSS
OPERATING PROFIT
+11.6%
€21,969million
€19,683 in 2022
RESULTS
PROFIT ATTRIBUTABLE TO
OWNERS OF THE PARENT
€3,438 million
€1,682 in 2022
ORDINARY PROFIT ATTRIBUTABLE
TO OWNERS OF THE PARENT
NET FINANCIAL
DEBT
+20.7%
-0.8%
€6,508 million
€5,391 in 2022
€60,163 million
€60,663 in 2022(1)
CAPITAL EXPENDITURE
CASH FLOWS
FROM OPERATING
ACTIVITIES
+69.0%
€14,620 million
€8,649 in 2022(2)
PEOPLE
NO. OF EMPLOYEES
-6.2%
61,055
65,124 in 2022
CAPITAL EXPENDITURE ON
PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS(3)
-11.4%
€12,714 million
€14,347 in 2022
NO. OF LIFE CHANGING
ACCIDENTS (LCA) - ENEL(4)
-
- in 2022
(1)
(2)
In order to facilitate analysis of developments in Group net fi nancial debt, thereby ensuring greater comparability over time, management has decided to
exclude the fair value of the cash fl ow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to improve
the comparability of the fi gures, it was necessary to recalculate net fi nancial debt at December 31, 2022.
In order to improve presentation, for comparative purposes only, realized fi nancial income and expense connected solely with borrowings have been reclas-
sifi ed from “Collections/(Payments) associated with derivatives connected with borrowings” in the section on cash fl ows from fi nancing activities to the items
“Interest income and other fi nancial income collected” and “Interest expense and other fi nancial expense paid” included in cash fl ows from operating activities.
(3) Does not include €849 million regarding units classifi ed as held for sale or discontinued operations (€156 million in 2022).
(4)
Injuries whose consequences caused permanent changes in the life of the individual.
Highlights
19
HIGHLIGHTS OF THE
BUSINESS LINES
ENEL GREEN POWER AND THERMAL GENERATION
TOTAL NET EFFICIENT
INSTALLED CAPACITY
-3.8%
81.4 GW
84.6 in 2022
NET ELECTRICITY
GENERATION(1)
-9.0%
207.33 TWh
227.77 in 2022
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY
ADDITIONAL EFFICIENT
INSTALLED RENEWABLES
CAPACITY
+3.5%
55.5 GW
53.6 in 2022
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY
+4.9%
68.2 %
63.3% in 2022
-18.8%
4.03 GW
4.96 in 2022
NET RENEWABLE
ELECTRICITY
GENERATION(1)
+12.9%
126.98 TWh
112.45 in 2022
INTENSITY OF SCOPE 1
GHG EMISSIONS RELATED
TO POWER GENERATION(2)
INTENSITY OF SCOPE 1 AND
SCOPE 3 GHG EMSSIONS RELATED
TO INTEGRATED POWER(2)
-30.1%
-20.0%
160 gCO2eq/kWh
168 gCO2eq/kWh
229 in 2022
210 in 2022
(1)
If net generation operated through joint ventures were also included, total generation at December 31, 2023 would amount to 220.6 TWh; similarly, gene-
ration from renewable sources would be equal to 140.3 TWh at December 31, 2023 (123.7 TWh at December 31, 2022).
(2) KPI corresponding to the target cert ifi ed by the Science Based Targets initiative (SBTi) in 2022.
20
Integrated Annual Report 2023
ENEL GRIDS AND INNOVABILITY
END USERS
-3.3%
70,291,727 no.
72,655,170 in 2022
ELECTRICITY
DISTRIBUTION AND
TRANSMISSION GRID
ELECTRICITY
TRANSPORTED ON ENEL’S
DISTRIBUTION GRID
-6.2%
-3.6%
1,899,419 km
489.2 TWh
2,024,038 in 2022
507.5 in 2022(3)
END USERS WITH ACTIVE
SMART METERS(4)
-1.4%
45,172,959 no.
45,824,963 in 2022
ENEL X GLOBAL RETAIL
ELECTRICITY SOLD
BY ENEL
RETAIL
CUSTOMERS
-6.3%
-8.5%
of which
free market
-12.7%
300.9 TWh
61,118,024 no.
24,320,725 no.
321.1 in 2022
66,784,895 in 2022
27,864,392 in 2022
STORAGE
1,730 MW
760 in 2022
DEMAND RESPONSE
CAPACITY
PUBLIC CHARGING
POINTS(5)
+13.1%
+9.8%
9,588 MW
8,476 in 2022
24,281 no.
22,112 in 2022(3)
(3) The fi gure for 2022 refl ects a more accurate calculation of the aggregate.
(4) Of which 28.7 million second-generation meters in 2023 and 25.2 million in 2022.
(5)
If the fi gures also included charging points operated through joint ventures, the totals would amount to 25,337 at December 31, 2023 and 22,617 at De-
cember 31, 2022.
Highlights
21
22
Integrated Annual Report 2023
VALUE CREATION
AND THE BUSINESS
MODEL
The value creation process
The integrated presentation of financial and sustainability
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. The management of economic, environmental
and social aspects is increasingly significant in terms of
assessing the ability to create value for stakeholders.
The following graphical representation summarizes the
value chain of the Enel Group: the main inputs used, how
they are transformed into outcomes and value created for
stakeholders.
Value creation and the business model
23
VALUE CREATION AND THE BUSINESS MODEL
OUR RESOURCES
OUR BUSINESS MODEL
TERNAL EN VIR O
TERNAL EN VIR O
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
••
T ||
T
N
N
E
E
M
M
N
N
||GOVERNANCE
GOVERNANCE | |
| |
STRATEGIC PILLARS
CAPITAL
ALLOCATION
1.
PROFITABILITY,
FLEXIBILITY AND
RESILIENCE
GROUP
TRANSACTIONS
2.
EFFICIENCY AND
EFFECTIVENESS
VALUE CHAIN
POWER
GENERATION
TOTAL NET
EFFICIENT
INSTALLED
CAPACITY
81.4 GW
NET EFFICIENT
INSTALLED
RENEWABLES
CAPACITY
68.2 %
||
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
DISTRIBUTION
END USERS
70,291,727
(no.)
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
&
&
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
|
|
OK
OK
||O UTLO
O UTLO
C
C
E
E |
|
PLANET
0.20 l/kWheq Total specifi c withdrawals of fresh
water
23.3% Water withdrawals in water-stressed areas
19.3 Mtoe Total direct fuel consumption
PEOPLE
ENEL΄S PEOPLE
61,055 Enel employees
32.5% Percentage of women in senior and middle
management
PROSPERITY
FINANCIAL COMMUNITY
€60,163 million Net fi nancial debt
64% Sustainable fi nancing/Total gross debt
€45,109 million Total equity
€17,055 million Intangible assets
€89,801 million Propert y, plant and equipment
€12,714 million Capital expenditure(1)
84.8% Capital expenditure in business activities
aligned with the EU taxonomy
CUSTOMERS
45.17 million End users with active smart meters
43.7% Digital customers
177 no. Commerical claims (per 10,000 customers)
SUPPLIERS
150,820 no. Suppliers (FTE)
14,001 no. Active suppliers
COMMUNITIES
PARTNERS
PRINCIPLES OF GOVERNANCE
44.4% Women on the Board of Directors
207 Code of Ethics report s (of which 41 violations)
(1) Does not include €849 million regarding units classifi ed as held for sale.
24
Integrated Annual Report 2023
||GOVERNANCE
GOVERNANCE | |
| |
G
G
T ||
T
N
N
E
E
M
M
N
N
TERNAL EN VIR O
TERNAL EN VIR O
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
••
GROUP
TRANSACTIONS
2.
EFFICIENCY AND
EFFECTIVENESS
SUSTAINABILITY
3.
FINANCIAL AND
ENVIRONMENTAL
SUSTAINABILITY
||
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 |
|
ELECTRICITY DISTRIBUTION
AND TRANSMISSION GRID
1,899,419 km
PRINCIPLES OF GOVERNANCE
44.4% Women on the Board of Directors
207 Code of Ethics report s (of which 41 violations)
R
R
O
O
U
U
P
P
S
S
T
T
R
R
A
A
T
T
E
E
G
G
Y
Y
&
&
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
|
|
PRODUCTS AND
SERVICES
RETAIL CUSTOMERS
61,118,024 no.
PUBLIC CHARGING
POINTS
24,281 no.
OK
OK
O UTLO
||O UTLO
VALUE CREATED FOR ENEL AND OUR STAKEHOLDERS
OUTCOMES
PLANET
168 gCO2eq/kWh Intensity of Scope 1 and Scope 3
GHG emissions related to Integrated Power
16.79 million teq Indirect greenhouse gas emissions
- Scope 3 (retail gas)
35.4 millions of m3 Total water consumption
22.1% Water consumption in water-stressed areas
8,343 ha Area involved in habitat restoration
projects
61.2% Renewable generation as a proport ion of
total Group generation
PEOPLE
ENEL΄S PEOPLE
0.72 Lost Time Injury Frequency Rate with days lost
(LTI FR) - Enel
48.1 hours Average number of training hours per
employee
44.8% Reskilling and upskilling training
6.6% Turnover
PROSPERITY
FINANCIAL COMMUNITY
€5,337 million Treasury shares, dividends and
coupons paid to holders of hybrid bonds
0.43 (€/share) Fixed DPS
4% Cost of gross debt
€95,565 million Revenue
€21,969 million Ordinary EBITDA
59.7% Ordinary EBITDA from business activities
aligned with the EU taxonomy as a proport ion of
Group total
CUSTOMERS
300.9 TWh Electricity sold
489.2 TWh Electricity transport ed
217.6 avg. min. SAIDI
0.6 million Benefi ciaries of new concessions in
rural and suburban areas
SUPPLIERS
100% Qualifi ed suppliers assessed on ESG issues
0.56 Lost Time Injury Frequency Rate with days lost
(LTI FR) - contractors
COMMUNITIES
3.9 million Benefi ciaries of sustainable projects
€5,861 million Total tax borne
PARTNERS
113 no. Proofs of Concept begun to test innovative
solutions
46 no. Solutions in scale-up phase
Value creation and the business model
25
Business model
Enel’s business model is conceived to maximize long-term
value creation for all stakeholders through the achieve-
ment of Group growth, development and efficiency objec-
tives while at the same time minimizing business risks.
The Enel business model is structured along the entire
value chain through global business lines for generation
(Enel Green Power and Thermal Generation), commodi-
ty portfolio management (Global Energy and Commodity
Management), distribution (Enel Grids and Innovability)
and customer sales (Enel X Global Retail), supported by the
Global Service Function and Staff Functions.
The current mission of each global business line can be
summarized as follows:
• Enel Green Power and Thermal Generation is en-
gaged in the generation of electricity from renewables
(through Enel Green Power) and conventional sources,
seeking to accelerate the energy transition and man-
aging the path of decarbonization;
• Global Energy and Commodity Management operates
in wholesale physical and financial markets for energy
commodities (electricity, gas, emissions, oil and many
others) and manages the Group’s integrated portfolio
through hedging with complex products in order to
mitigate the risks of international commodity trading;
• Enel Grids and Innovability is a world leader in electricity
distribution, ensures the supply of electricity through
increasingly efficient grids that are ever more resilient
and secure against extreme and adverse events and
more flexible thanks to enabling new business models
for DSOs (distribution system operators).
In line with these objectives, Enel Grids’ innovation effort
has focused on resilience, operational excellence and
security, seeking advanced solutions that can guaran-
tee and improve an increasingly safe environment for
workers and generate a positive and sustainable impact
on the business;
• Enel X Global Retail operates in the supply of electrici-
ty, energy management services and public and private
electric mobility, with a portfolio of value-added prod-
ucts and services to encourage more independent and
sustainable use of energy.
Enel X Global Retail offers innovative solutions to im-
prove people’s lives, focusing on residential consumers,
companies and government entities with modular and
integrated offers built around customer needs, pro-
moting the digitalization and electrification of energy
use and transport as drivers to create new value.
By exploiting the synergies between the different busi-
ness areas and implementing actions through the lever of
innovation, the Enel Group seeks to develop solutions to
drive sustainable progress, reduce environmental impact,
meet the needs of customers and the local communities
in which it operates and ensure high safety standards for
employees and suppliers.
In order to fully benefit from all the opportunities emerging
in the market environment in which it operates, the Group
has identified three different business models (Ownership,
Partnership and Stewardship) it can deploy depending on
the geographical area and expected return:
• the Ownership business model, in which the Group
makes direct investments in renewables, grids and
customers, benefitting from the financial performance
generated by the continuous use of the assets involved.
This model is mainly employed in countries where the
entire value chain can already be leveraged, from gen-
eration to relationships with end users, especially where
expected returns are the highest;
• the Partnership business model, in which the Group
makes investments with a partner in order to lower its
exposure to the risks associated with the assets in-
volved, while maintaining control and maximizing the
productivity and flexibility of the capital employed;
• the Stewardship business model, in which the Group
invests in existing or new joint ventures and acquires or
maintains minority stakes, benefitting from the devel-
opment of the assets. This model will further enhance
financial flexibility while significantly reducing the risk
exposure of capital, increasing returns. Three geo-
graphical areas (Italy, Iberia and Rest of the World) are
incorporated into this approach, each of which oper-
ates in its area in a matrix relationship with the broad-
er and more global business lines, managing activities
such as relations with local communities, regulation and
local communication, while ensuring the integration of
the business lines present in the country involved.
26
Integrated Annual Report 2023
ENEL AROUND
THE WORLD
The Enel Group has a presence in 43 countries on mul-
tiple continents around the world, with more than 1,000
subsidiaries.
The following map shows the distribution of the Enel
Group across the globe.
43
countries
more than
1,000
subsidiaries
P RESEN
C
E
61,055
No. of total Enel
employees
Enel around the world
27
28
Integrated Annual Report 2023
REPORT
ON OPERATIONS
2.
GOVERNANCE
● Corporate governance system oriented towards the goal of
sustainable success.
● Governance model in line with international best practice.
● Transparency and fairness as founding values.
29
ENEL
SHAREHOLDERS
At December 31, 2023, 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, 2022.
In implementation of the authorization of the Sharehold-
ers’ Meeting of May 10, 2023 and the subsequent reso-
lution of the Board of Directors adopted on October 5,
2023, Enel has completed a program for the purchase of
treasury shares to serve the 2023 LTI Plan for the man-
agement of Enel and/or its subsidiaries pursuant to Article
2359 of the Italian Civil Code. More specifically, as a re-
sult of transactions carried out between October 16, 2023
and January 18, 2024 in execution of the aforementioned
program, the Company has acquired a total of 4,200,000
treasury shares. Accordingly, considering the 7,153,795
treasury shares already held at December 31, 2022 and
taking account of the disbursement on September 5,
2023 of 1,268,689 Enel shares to the beneficiaries of the
2019 LTI Plan and the 2020 LTI Plan, at the date of publica-
tion of this report the Company holds a total of 10,085,106
treasury shares; at December 31, 2023, during the imple-
mentation of the aforementioned program, Enel held a to-
tal of 9,262,330 treasury shares.
Significant shareholders
At December 31, 2023, based on the shareholders regis-
ter 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 infor-
mation, 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) and Black-
Rock Inc. (with a 5.023% stake held for asset management
purposes).
30
Integrated Annual Report 2023
Composition of shareholder base
Since 1999, Enel has been listed on the Euronext Milan
market organized and operated by Borsa Italiana SpA.
Enel’s shareholders include leading international invest-
ment funds, insurance companies, pension funds and
ethical funds.
With regard to Environmental, Social and Governance
(ESG) investors in Enel, at December 31, 2023, socially re-
sponsible investors (SRIs) held around 17.5% of the share
capital (from 14.9% at December 31, 2022). Investors who
have signed the Principles for Responsible Investment rep-
resent 42.8% of the share capital (compared with 42.1% at
December 31, 2022).
17.8%
Retail
investors
23.6%
Ministry for the Economy
and Finance
58.6%
Institutional
investors
Enel shareholders
31
CORPORATE BOARDS
CORPORATE BOARDS
BOARD
OF DIRECTORS
CHIEF EXECUTIVE OFFICER
AND GENERAL MANAGER
Flavio Catt aneo
CHAIRMAN
Paolo Scaroni
SECRETARY
Leonardo Bellodi
DIRECTORS
Johanna Arbib
Mario Corsi
Olga Cuccurullo
Dario Frigerio
Fiammett a Salmoni
Alessandra Stabilini
Alessandro Zehentner
BOARD OF
STATUTORY AUDITORS
CHAIRMAN
Barbara Tadolini
AUDITORS
Luigi Borré
Maura Campra
ALTERNATE AUDITORS
Carolyn A. Ditt meier
Tiziano Onesti
Piera Vitali
AUDIT FIRM
KPMG SpA
32
Integrated Annual Report 2023
2023
COMPOSITION OF
THE BOARD OF DIRECTORS
1 executive director
1 in 2022
8 non-executive directors
8 in 2022
of which 7 independent (1)
8 in 2022
5 men
5 in 2022
55.6%
men
55.6%
in 2022
0% 30-50
0% <30
GENDER
4 women
4 in 2022
44.4%
women
44.4%
in 2022
AGE
100%
> 50
EXPERTISE
Energy industry
0
1
2
Strategic vision
0
1
2
Business judgement
0
1
2
3
3
3
4
4
4
5
5
5
Accounting, fi nance and risk management
0
1
2
3
4
5
6
6
6
6
Environmental, social and corporate governance
0
1
2
3
Legal and compliance
0
1
2
3
4
4
Communication and marketing
0
1
2
3
International experience(2)
0
1
2
3
4
4
5
5
5
5
6
6
6
6
7
7
7
7
7
7
7
7
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
(1) The fi gures for 2023 and 2022 refer to directors qualifying as independent pursuant to the Consolidated Law on Financial Intermediation and the Italian
(2)
Corporate Governance Code (2020 edition).
In accordance with the Diversity Policy adopted by the Enel Board of Directors, “international experience” is assessed on the basis of the managerial, pro-
fessional, academic or institutional activities perf ormed by each director in international environments.
Corporate boards
33
THE ENEL
CORPORATE
GOVERNANCE
SYSTEM
The corporate governance system of Enel SpA (“Enel” or
the “Company”) is compliant with the principles set forth
in the edition of the Italian Corporate Governance Code
published on January 31, 2021,(6) adopted by the Company
as a “large company” without “concentrated ownership“,(7)
and with international best practice. The corporate gover-
nance system adopted by Enel is aimed at achieving sus-
tainable success, as it is aimed at creating value for the
shareholders over the long term, taking into account the
environmental and social importance of the Enel Group’s
business operations and the consequent need, in con-
ducting such operations, to adequately consider the in-
terests of all relevant stakeholders.
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
(6) Available from the website of Borsa Italiana (at https://www.borsaitaliana.it/comitato-corporate-governance/codice/2020-eng.en.pdf).
(7) The Corporate Governance Code defines a “large company” as any company whose capitalization was greater than €1 billion on the last Exchange busi-
ness day of each of the previous three calendar years, while a “company with concentrated ownership” is any company in which a single shareholder (or a
plurality of shareholders which participates in a shareholders’ voting agreement) holds, directly or indirectly (through subsidiaries, trustees or third parties),
the majority of the votes that can be exercised in the ordinary shareholders’ meeting.
34
Integrated Annual Report 2023
THE ENEL
CORPORATE
GOVERNANCE
SYSTEM
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 Statu-
tory Auditors and their compensation and undertaking any stockholder actions;
Board of Directors
15
meetings held by
the Board in 2023,
in 6 of which it
addressed issues
connected with
climate and their
impact on strategies
and the associated
approaches to
implementation
• 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.
• 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, holds powers for strategic and organizational
guidance 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 sustainability,(8) 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 sustain-
able business model.
• It also performs a policy-setting role and assesses the adequacy of the internal control and risk
management system (ICRMS). More specifically, it determines the nature and level of risk com-
patible with the strategic objectives of the Company and the Group, incorporating in its assess-
ments 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 effective 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 environ-
ment, 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 2023 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 determina-
tion of Enel’s remuneration policy for 2023; (iii) the examination of the 2022 Sustainability Report,
which incorporates the Consolidated Non-Financial Statement pursuant to Legislative Decree
254/2016 for the same year. In addition, it discussed climate- and environment-related issues
as part of the analysis of transactions connected with decarbonization strategy and sustainable
finance, as well as in relation to its engagement with investors. Finally, on the occasion of extreme
climate events, the Board of Directors received extensive reporting on the immediate counter-
measures adopted, as well as on any need for infrastructure adaptation measures to respond to
the changed context.
• With regard to enhancing gender diversity, it agreed on the introduction of a performance ob-
jective in the 2023 Long-Term Incentive Plan, represented by the percentage of women in top
management succession plans at the end of 2025.
• Finally, the Board of Directors received updates on cyber security and safety-related issues and
human rights activities in the countries in which the Group operates, as well as timely information
on developments in and the substance of the various forms of investor engagement.
(6) Available from the website of Borsa Italiana (at https://www.borsaitaliana.it/comitato-corporate-governance/codice/2020-eng.en.pdf).
(7) The Corporate Governance Code defines a “large company” as any company whose capitalization was greater than €1 billion on the last Exchange busi-
ness day of each of the previous three calendar years, while a “company with concentrated ownership” is any company in which a single shareholder (or a
plurality of shareholders which participates in a shareholders’ voting agreement) holds, directly or indirectly (through subsidiaries, trustees or third parties),
the majority of the votes that can be exercised in the ordinary shareholders’ meeting.
(8) 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
35
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 accor-
dance 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
7
meetings held by
the Committee in
2023, in 5 of which
it addressed issues
connected with
climate and their
impact on strategies
and the associated
approaches to
implementation
Control and Risk
Committee
14
meetings held by
the Committee in
2023, in 3 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 2023 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 cor-
porate 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 Consolidated Non-Financial State-
ment and the Sustainability Report – which may be presented in a single document – and the
comprehensiveness 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 2023 included addressing climate-related issues on the occasion of the ex-
amination of: (i) the 2022 Sustainability Report, which incorporates the Consolidated Non-Financial
Statement pursuant to Legislative Decree 254/2016 for the same year; (ii) the materiality analysis
and the guidelines of the 2024-2026 Sustainability Plan; (iii) updates on the main sustainability
activities performed by the Enel Group in 2023, on the state of implementation of the 2023-2025
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 indepen-
dent. In 2023 it was made up of:
– until May 2023, four non-executive independent directors;
– from June 2023, four non-executive directors, of which a majority are independent.
• It has the task of supporting the assessments and decisions of the Board of Directors relating to the
internal control and risk management system (ICRMS), as well as those relating to the approval of peri-
odic 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 measured, managed and monitored; (ii) on the degree of compat-
ibility 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 Governance and Sustainability Com-
mittee with regard to periodic non-financial reporting.
• It examines the issues relevant to the ICRMS addressed in the Consolidated Non-Financial Statement
pursuant to Legislative Decree 254/2016 and the Sustainability Report, which may be presented in a
single document and contains corporate disclosures on climate issues, issuing a prior opinion on these
aspects to the Board of Directors, which is called upon to approve these documents.
• Activities performed in 2023 included addressing climate-related issues on the occasion of the ex-
amination of: (i) issues concerning the ICRMS dealt with in the 2022 Sustainability Report, which in-
corporates the Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 for
the same year; (ii) meetings with the head of the Enel Green Power and Thermal Generation Global
Business Line concerning the activities carried out and the risks existing in its area of responsibility,
as well as the tools used to mitigate their effects; (iii) the analysis of the compatibility of the main risks
associated with the strategic objectives of the 2024-2026 Business Plan.
36
Integrated Annual Report 2023
Nomination and
Compensation
Committee
14
meetings held by the
Committee in 2023
Related Parties
Committee
6
meeting held by the
Committee in 2023
• It is composed of non-executive directors, the majority of whom (including its Chairman) are indepen-
dent. In 2023 it was made up of:
– until May 2023, four non-executive independent directors;
– from June 2023, five non-executive directors, of which a majority are independent.
• 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 man-
agement personnel. In this regard, the remuneration policy for 2023 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 par-
ticular, with regard to the long-term variable component of the remuneration of the Chief Executive
Officer/General Manager and key management personnel, the performance objectives of the 2023
Long-Term Incentive Plan included (i) an objective related to gender diversity, represented by the per-
centage of women in top management succession plans at the end of 2025, as well as (ii) a target con-
cerning the reduction of specific greenhouse gas emissions, consistent 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, 2023 remuneration policy is linked, among other things, to (i) a performance
objective for preserving workplace safety, as well as (ii) a performance objective measuring the level of
customer satisfaction through the annual number of commercial complaints filed at the Group level,
with the latter objective being associated with two gate objectives(9) for the number of commercial
complaints filed in the free commodity market in Italy and for the average annual duration of service
interruptions for low-voltage customers (System Average Interruption Duration Index - SAIDI).
• It is composed of independent non-executive directors. In 2023 it was made up of:
– until May 2023, four non-executive independent directors;
– from June 2023, three non-executive independent directors.
• It performs the functions provided for in the relevant CONSOB regulations and in the specific Enel pro-
cedure for transactions with related parties, essentially issuing particular reasoned opinions on the in-
terest 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.
Board of Statutory
Auditors
It is charged with overseeing:
• compliance with the law and the bylaws, as well as compliance with the principles of sound administra-
24
meetings held by the
Board in 2023
tion 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 independence
of the Audit Firm;
• the approach adopted in implementing the corporate governance rules envisaged by the Corporate
Governance Code.
(9) Achieving these is necessary to achieve the overall customer satisfaction target.
The Enel corporate governance system
37
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 pre-
sides over its proceedings.
• The Chairman acts as a liaison between the executive directors and the non-executive directors
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 provided
during meetings enables 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 developments
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 12, 2023, 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 Direc-
tors, 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.
• During 2023, the Chairman also chaired the Corporate Governance and Sustainability Committee.
• Like the Chairman of the Board of Directors, the CEO is vested by the bylaws with the powers to
represent the Company and to sign on its behalf, and in addition is vested by a Board resolution
of May 12, 2023 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 primary responsibility
for managing the Company).
• In the exercise of these powers, the CEO has defined a sustainable business model, delineating a
strategy to lead the energy transition towards a low-carbon model. The CEO is also 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 address climate
change.
• The CEO represents Enel in various initiatives that deal with sustainability, holding positions of
leadership in international institutions such as the Global Investors for Sustainable Development
(GISD) Alliance launched by the United Nations in 2019.
• As the officer with primary responsibility for managing the Company, the CEO has primary au-
thority for engaging with institutional investors, providing them with any appropriate clarification
concerning matters that fall within the scope of the Chairman’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 maintaining
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 proposal from the Board
of Statutory Auditors.
38
Integrated Annual Report 2023
Good corporate
governance
practices
• Following the appointment of the Board of Directors by the ordinary Shareholders’ Meeting of May
10, 2023 and taking account of the election of an entirely new Board, Enel organized a specific in-
duction program to provide the directors with an understanding of the sectors in which the Group
operates, as well as insight into company dynamics and their evolution, market developments and
the applicable regulatory framework. Various induction initiatives were therefore held during 2023,
focusing on the corporate governance system of the Company and the Group, the electrical sys-
tem and power generation, as well as closer analyses of certain business lines and the People and
Organization Staff Function.
• At the end of 2023 and during the first two months of 2024, 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” ap-
proach, i.e. evaluating not only the operation of the body as a whole, but also the style and sub-
stance of the contribution made by each of its members, and it was extended to include the Board
of Statutory Auditors. Among other issues, the board review also specifically sought to verify the
directors’ perception of (i) the effectiveness of induction activities and (ii) the Board’s involvement
with sustainability issues and their integration into corporate strategy, including climate change
issues. 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 considered op-
timal for the members of these bodies, so that each can exercise their duties most effectively,
taking decisions that can effectively draw on the contribution of a plurality of qualified points of
view, able to examine the issues under discussion from different perspectives. The policy approved
by the 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 di-
rectors;
– 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, ensuring
that at least one-third of directors should have adequate experience in the international arena,
which is also considered useful for preventing the standardization of opinions and the emer-
gence of “group thought”;
– in order to achieve a balance between the need for continuity and renewal in management, it
would be necessary to ensure a balanced combination of people of differing seniority – and
age – within the Board of Directors;
– non-executive directors should have a management and/or professional and/or academic and/
or institutional background such as to create a diverse and complementary set of skills and
experience;
– in view of the differences in their roles, the Chairman and the CEO should have the appropriate
skills (specifically indicated in the policy) for the effective performance of their respective duties.
The Enel corporate governance system
39
• 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 subsid-
iaries 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 recommenda-
tions 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 appli-
cable local legislation.
• In order to regulate the procedures for the Company’s engagement with institutional investors 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 national regulations concerning market abuse, as well
as in line with international best practices. In drawing up the Engagement Policy, which was con-
sistently applied during 2023, 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 gover-
nance 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).
40
Integrated Annual Report 2023
ENEL
ORGANIZATIONAL
MODEL
ENEL GROUP CHAIRMAN
P. Scaroni
ENEL GROUP CEO
F. Cattaneo
STAFF
FUNCTIONS
ADMINISTRATION, FINANCE AND CONTROL
S. De Angelis
PEOPLE AND ORGANIZATION
E. Colacchia
EXTERNAL RELATIONS
N. Mardegan
AUDIT
S. Fiori
LEGAL, CORPORATE, REGULATORY
AND ANTITRUST AFFAIRS
F. Puntillo
CEO OFFICE AND STRATEGY
M. Mossini
SECURITY
V. Giardina
GLOBAL SERVICE
FUNCTION
GLOBAL SERVICES
S. Ciurli
GLOBAL
BUSINESS LINES
ENEL GRIDS AND
INNOVABILITY
G.V. Armani
GLOBAL ENERGY
AND COMMODITY
MANAGEMENT
AND CHIEF
PRICING OFFICER
C. Machetti
ENEL
GREEN POWER
AND THERMAL
GENERATION
S. Bernabei
ENEL X
GLOBAL RETAIL
F. Gostinelli
COUNTRIES
AND REGION
ITALY
N. Lanzetta
IBERIA
J. Bogas Gálvez
REST OF THE WORLD
A. De Paoli
Enel organizational model
41
The Enel Group structure is organized into a matrix that
comprises:
Global Business
Lines
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. In compliance with safety, protection and environmental 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,(10) benefits from a centralized
industrial vision of projects in the various business lines. Each project is assessed not only on the
basis of its financial return but also in relation to the best technologies available at the Group level.
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
competence.
The following provides a brief summary of the primary objectives of each Global Business Line:
• Enel Grids and Innovability: ensures the reliability and quality of electricity supply services through
efficient, resilient and digital grids; promotes, harmonizes and coordinates innovation and sustain-
ability processes, supporting operations in the Global Business Lines and Countries.
• Global Energy and Commodity Management and Chief Pricing Officer: optimizes the Group’s mar-
gin through the active management of its hedging strategy and exposure to commodity risk, taking
account of all commercial/market factors in order to maximize the integrated margin in the markets
in which we operate through the optimization of gas and fuel provisioning, and local dispatching of
thermal and renewable generation, while supporting Enel X Global Retail in defining the commercial
strategy.
• Enel Green Power and Thermal Generation: provides guidance for a rapid and effective energy tran-
sition, growing the portfolio of renewable generation facilities, and manages the corresponding
evolution of thermal generation and storage assets with a view to decarbonizing our energy mix in
order to meet the needs of customers in all the countries in which we operate.
• Enel X Global Retail: defines the commercial strategy and manages the customer product range for
energy, products and services, including electric mobility, ensuring compliance with safety, protec-
tion and environmental regulations, maximizing value for the customer and operational efficiency,
and supporting margin optimization with Global Energy and Commodity Management.
Region and
Countries
The Region and Countries are responsible for managing relationships with institutional bodies and
regulatory authorities, as well as handling distribution and electricity and gas sales, in their areas,
while also providing staff and other service support to the business lines. They are also charged with
promoting decarbonization and guiding the energy transition towards a low-carbon business mod-
el within their areas of responsibility.
The following functions provide support to Enel’s business operations:
Global Service
Function
The Global Service Function is responsible for managing information and communication technol-
ogy activities, procurement at the Group level and managing global customer relationship activities.
The Global Service Function is also focused on the responsible adoption of measures that allow the
achievement of sustainable development objectives, in the specific in managing the supply chain
and developing digital solutions to support the development of enabling technologies for the ener-
gy transition and the fight against climate change.
Holding Company
Staff Functions
The Holding Company Staff Functions are responsible for managing governance processes at the
Group level. More specifically, the Administration, Finance and Control Function is also responsi-
ble for consolidating scenario analysis and managing the strategic and financial planning process
aimed among other things at promoting the decarbonization of the energy mix and the electrifica-
tion of energy demand, key actions in the fight against climate change.
(10) The Group Investment Committee is made up of the heads of Administration, Finance and Control, Innovability, Legal, Corporate, Regulatory and Antitrust
Affairs, Global Procurement, and the heads of the Geographical Areas and the Business Lines.
42
Integrated Annual Report 2023
INCENTIVE
SYSTEM
Enel’s remuneration policy for 2023, which was adopted
by the Board of Directors acting on a proposal of the
Nomination and Compensation Committee and ap-
proved by the Shareholders’ Meeting of May 10, 2023,
was formulated on the basis of (i) the recommendations
of the Italian Corporate Governance Code published
on January 31, 2020; (ii) national and international best
practice; (iii) the guidance provided by the favorable
vote of the Shareholders’ Meeting of May 19, 2022 on
the remuneration policy for 2022; (iv) the results of the
engagement activity on corporate governance issues
pursued by the Company between January and February
2023 with the leading proxy advisors and some Enel’s
relevant institutional investors; (v) the findings of the
benchmark analysis of the remuneration of the Chair-
man of the Board of Directors, the Chief Executive Of-
ficer/General Manager and the non-executive directors
of Enel for 2022, which was performed by the indepen-
dent consultant Mercer.
This policy is intended to (i) foster Enel’s sustainable
success, which takes the form of creating long-term
value for the benefit of shareholders, taking due con-
sideration of the interests of other key stakeholders, so
as to incentivize the achievement of strategic objec-
tives; (ii) attract, retain and motivate personnel with the
professional skills and experience required by the sen-
sitive 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 2023 remuneration policy adopted for the Chief Ex-
ecutive Officer/General Manager and key management
personnel envisages:
• a fixed component;
• a short-term variable component (MBO) that will be
paid out on the basis of achievement of specific per-
formance objectives. Namely:
– for the CEO/General Manager, annual objectives
have been set for the following components of the
2023 MBO mechanism:
• consolidated net ordinary profit;
• funds from operations/consolidated net financial
debt;
• commercial complaints received at the Group lev-
el, accompanied by the following gate objectives:
(i) System Average Interruption Duration Index -
SAIDI; (ii) commercial complaints on the free com-
modity market in Italy;
• workplace injury frequency rate, accompanied by a
gate objective represented by fatal injuries;
– for key management personnel, the respective MBOs
identify objective and specific annual goals connect-
ed with the Strategic Plan. They are determined joint-
ly by the Administration, Finance and Control Func-
tion and the People and Organization Function;
• a long-term variable component linked to participation
in specific long-term incentive plans. In particular, for
2023 this component is linked to participation in the
2023 Long-Term Incentive Plan for the management
of Enel SpA and/or its subsidiaries pursuant to Article
2359 of the Italian Civil Code (2023 LTI Plan), which es-
tablishes three-year performance targets for the fol-
lowing:
– Enel’s average TSR (Total Shareholder Return) com-
pared with the average TSR for the EURO STOXX Util-
ities - EMU index for the 2023-2025 period;
– ROIC (Return on Invested Capital) - WACC (Weighted
Average Cost of Capital), cumulative for 2023-2025;
– intensity of Scope 1 and Scope 3 GHG emissions
related to the Group’s Integrated Power operations
(gCO2eq/kWh) in 2025, accompanied by a gate ob-
jective represented by the intensity of Scope 1 GHG
emissions related to the Group’s power generation
(gCO2eq/kWh) in 2025;
– percentage of women in top management succes-
sion plans at the end of 2025.
The 2023 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 specifically,
of the total incentive vested, the 2023 LTI Plan establishes
that: (i) for the CEO/General Manager of Enel, the incen-
tive shall be paid entirely in Enel shares up to 150% of the
base value; (ii) for managers reporting directly to the CEO/
General Manager of Enel, including key management per-
Incentive system
43
sonnel, the incentive shall be paid entirely in Enel shares up
to 100% of the base value; and (iii) for beneficiaries other
than those specified under (i) and (ii), the incentive shall be
paid entirely in Enel shares up to 65% of the base value.
The 2023 LTI Plan provides that the shares to be disbursed
pursuant to the latter provisions shall be purchased previ-
ously by Enel and/or its subsidiaries. In addition, the dis-
bursement 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 2023 LTI Plan.
For more information on the remuneration policy for 2023,
please see Enel’s “Report on the remuneration policy for
2023 and compensation paid in 2022”, which is available
on the Company’s website (www.enel.com).
44
Integrated Annual Report 2023
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, in-
cluding: the Code of Ethics, the Compliance Model under
Legislative Decree 231/2001, the Enel Global Compliance
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,(11) which expresses
the Company’s ethical responsibilities and commitments
in conducting its affairs and operations, governing and
standardizing corporate conduct on the basis of stan-
dards aimed to ensure the maximum transparency and
fairness with all stakeholders. The Code of Ethics is valid
for the whole Group, taking due account of the cultural,
social and economic diversity of the various countries in
which Enel operates. Enel also requires that all 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-lev-
el platform (the “Ethics Point”).
The following table indicates total violation reports re-
ceived through the whistleblowing platform and actual
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.
2023
207
41
7
2022(1)
168
34
10
Change
39
7
(3)
23.2%
20.6%
-30.0%
(1) The analysis of reports received in 2022 was completed in 2023. For that reason, the number of reports for 2022 was restated from 172 to 168 and the
number of confirmed violations for 2022 was restated from 29 to 34. Among the five additional violations, one is attributable to a case of conflict of interest
in Brazil.
Compliance Model under Legislative Decree 231/2001
Legislative Decree 231 of June 8, 2001 introduced into Ital-
ian law a system of administrative 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 Legislative Decree 231/2001 (also
known as “Model 231”). It has been constantly updated to
reflect developments in the applicable regulatory frame-
work and current organizational arrangements.
(11) Most recently updated in February 2021.
Values and pillars of corporate ethics
45
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
reputation. Identification of the types of crime covered
by the Enel Global Compliance Program – which encom-
passes standards of conduct and areas to be monitored
for preventive purposes – is based on illicit conduct that is
generally considered such in most countries, such as cor-
ruption, crimes against the government, false accounting,
money laundering, violations of regulations governing
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
company business and operations and to safeguard our
image and positioning, the work of our employees, the
expectations of shareholders and all of the Group’s stake-
holders. Following receipt of the ISO 37001 anti-corrup-
tion certification by Enel SpA in 2017, the 37001 certifica-
tion plan has gradually been extended to the main Italian
and international subsidiaries of the Group.
The following table reports the average number of per
capita training hours provided on anti-corruption policies
and procedures.
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
Human Rights Policy
2023
2022
Change
no.
%
%
%
%
%
%
%
30,304
30,564
49.6
46.9
50.7
42.5
49.6
94.2
79.3
54.2
56.5
51.0
31.9
12.0
14.8
80.1
(260)
2.7
(5.8)
(8.5)
17.7
82.2
64.5
-0.9%
5.8%
-10.3%
-16.7%
55.5%
-
-
(25.9)
-32.3%
Respect for human rights is part of the very foundation
of sustainable progress. Enel’s business model is based
on the generation of sustainable value, together with its
internal and external stakeholders, on continuous inno-
vation, the pursuit of excellence and respect for human
rights throughout the value chain. This translates into the
rejection of practices such as modern slavery, forced la-
bor and human trafficking, and the promotion of diversi-
ty, inclusion, equal opportunity and ensuring that people
are treated with dignity and valued for their uniqueness,
whether they work within the Company or elsewhere along
the value chain in which the Group operates. The main in-
ternational standards inspiring Enel’s commitment are the
United Nations framework “Protect, Respect, Remedy”,
outlined in the guiding principles on business and human
rights, and the guidelines for multinational companies of
the OECD. This commitment is clearly reflected in the hu-
man rights policy drawn up and adopted back in 2013. In
2021, this document was updated to take account of the
evolution of international reference frameworks and the
operational, organizational and management processes
of the Group. The document strengthens and expands the
commitments already present in other codes of conduct
adopted by Enel such as the Code of Ethics, the “Zero-Tol-
erance-of-Corruption” Plan and global compliance mod-
els. The update was approved by the Board of Directors of
46
Integrated Annual Report 2023
Enel SpA and then adopted by the subsidiaries. Enel un-
dertakes to comply with these principles in every country
in which it operates, respecting local cultural, social and
economic diversity, requiring each stakeholder to adopt
conduct in line with these principles, paying particular
attention to high-risk environments or those exposed to
conflicts.
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.
The update, similar to the 2013 version, involved a process
of consultation with stakeholders relevant to the Compa-
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 updated code identifies twelve principles (compared
with the previous eight), again divided into two mac-
ro-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 mit-
igate 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 environ-
mental degradation and climate change are interconnect-
ed with human rights, in that the implementation of mea-
sures to mitigate the effects of human activities on the
environment cannot take place without taking account
of their social impact; (ii) the strengthening of the princi-
ples of “respect for diversity and non-discrimination” and
“health and safety” in the part relating to mental and phys-
ical 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 communi-
cation.
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 has been developed in accordance with
the main international standards such as the United Na-
tions Guiding Principles on Business and Human Rights
and the OECD guidelines. It enables us to identify opportu-
nities for improvement and develop specific action plans.
Thanks to this process, 100% of policies and operational
procedures adopted are evaluated to identify any direct or
indirect risks in the management of our operations, cov-
ering the entire value chain and the establishment of new
business relationships (for example, acquisitions, mergers,
joint ventures, etc.). A new cycle of the process was begun
in 2023.
With regard to the sustainability of the supply chain, Enel’s
purchasing processes are based on fairness, transparency
and collaboration, and for this reason the Group’s suppli-
ers are required not only to guarantee the necessary qual-
ity standards but also to commit to adopting best prac-
tices for human rights and the impact of their activity on
the environment. These include those concerning working
conditions, health and safety, appropriate working hours,
rejection of forced or child labor, respect for personal
dignity, non-discrimination and the inclusion of diversity,
freedom of association and collective bargaining and re-
spect for privacy by design and by default. All of this is de-
lineated by a clear framework of codes of conduct, includ-
ing, in addition to the Human Rights Policy, the Code of
Ethics, the “Zero-Tolerance-of-Corruption” Plan and glob-
al compliance programs. Furthermore, specific clauses are
included in all contracts for works, services and supplies,
updated periodically to take account of the regulatory de-
velopments and ensure alignment with international best
practices. For more information, please see the section
“Sustainable supply chain”.
Values and pillars of corporate ethics
47
48
Integrated Annual Report 2023
REPORT
ON OPERATIONS
3.
GROUP STRATEGY &
RISK MANAGEMENT
● Reference scenario and context
Short-term global uncertainties in macroeconomic conditions,
energy, the climate and the energy transition are driving us to
improve the visibility of returns and increase the flexibility of our
businesses.
● Strategic Plan
The new Strategic Plan focuses the Group's strategy on driving
the profitability of investments, enhancing the effectiveness of
organization and processes in order to rationalize costs and, finally,
ensuring sustainability in the face of the financial and environmental
challenges of climate change.
● Analysis of risks and opportunities
The evaluation of climate and transition scenarios within a
structured process is a key tool for translating data into useful
information for maximizing opportunities and mitigating risks.
49
REFERENCE
SCENARIO
The geopolitical environment
Global economic developments can have a significant im-
pact on the Group’s operations due to their direct effects
on GDP growth rates, inflation rates and exchange rates in
the countries in which Enel operates. In recent years, the
stability of the euro area has been shaken by a number of
adverse events, such as the COVID-19 pandemic and the
more recent military conflict between Russia and Ukraine.
Since the euro-area economies are among the most ex-
posed to the war due to their geographical proximity to
the conflict area and their strong dependence on gas im-
ports from Russia, they have been severely impacted both
in terms of slower GDP growth and higher inflation. The
latter was initially triggered by the exponential increase in
energy and commodity prices. Subsequently, the reper-
cussions of the increase in the cost of firm’s production
factors on the prices of non-energy industrial goods fu-
eled a persistent inflationary environment, one that still
represents a risk factor requiring careful monitoring. The
increase in inflation has eroded household purchasing
power and has weighed on industrial production, partic-
ularly in more energy-intensive sectors. The easing of in-
flationary pressures in the second half of the year in the
euro area – similarly to developments in the United States
– prompted the European Central Bank to interrupt its se-
ries of interest rate increases after September. The great-
er persistence of core inflation (which excludes the most
volatile goods) compared with general inflation, however,
represents a source of uncertainty concerning the future
path of monetary policy, which if kept restrictive for a lon-
ger period time could impact economic activity and mon-
etary policy in the euro area.
The year 2024 will again be marked by geopolitical devel-
opments on a global scale. The continuation of the con-
flict between Russia and Ukraine, the more recent ten-
sions that have emerged in the Middle East, the elections
scheduled for 2024 in the European Union, the United
States, the United Kingdom, India, Taiwan, Iran and many
other countries, could all have a significant impact on the
domestic and foreign policies of major global players.
On the budgetary policy front, in December 2023 the fi-
nance ministers of the European Union reached an agree-
ment for the reform of the Stability and Growth Pact. The
50
Integrated Annual Report 2023
new fiscal rules are characterized by greater simplicity and
an emphasis on more readily observable variables, with the
aim of improving the effectiveness and credibility of the
rules.
On the international trade front, systems of sanctions also
remain in place, which can influence trade agreements
between countries and industrial policies in various re-
gions. Any introduction of new customs duties or export
restrictions could further aggravate current macroeco-
nomic conditions and make the geopolitical situation even
more uncertain.
The main risks affecting energy commodities lie in the fra-
gility of the natural gas market in Europe. Although com-
modity prices have fallen well below the highs recorded
in 2022, market equilibria are very tenuous, and disrup-
tions along the value chain, such as the loss of a supply
route via the Suez Canal, could drive prices up. This would
also have a sharp impact on coal and electricity prices, as
these variables are strongly correlated with developments
in gas prices. These considerations also hold for the oil
market, whose flows also pass through countries close to
the conflict areas and are strongly influenced by relations
between the United States and the Middle East.
The current geopolitical and macroeconomic context,
both in the West and in China, will also continue to influ-
ence demand in the industrial metals sector, which was
affected last year by the slowdown in global economic
growth and prolonged political and military tensions. In
particular, in China – the global leader in metals markets
– the recovery in demand in 2023 was weaker than ana-
lysts and experts had forecast, and future developments
continue to depend heavily on the impact of government
stimuli, which have not been as effective as expected so
far, and on the recovery of demand in Western countries.
As regards the metals most closely involved in renewable
energy technologies, such as lithium and polysilicon, the
recent environment of rapidly and sharply falling prices,
undermined by disappointing demand for “green” solu-
tions and a very large increase in the supply of both mate-
rials, is eroding the margins of producers, who are strug-
gling to sustain investment in near-term price scenario
that does not offer much room for growth.
Macroeconomic environment
The global macroeconomic environment in 2023 was
characterized by a general slowdown in the real economy,
continuing a downward trend that had already begun in
the previous year. After a slowdown in global GDP growth
to 3.1% on an annual basis in 2022, following the excellent
performance of 6.4% growth recorded in 2021, real growth
is expected to be even slower in 2023, at 3%. This decline
reflects the lagged and continuing effects of the restric-
tive monetary policy stances adopted by central banks to
counteract high inflationary pressures, the loss of con-
sumer purchasing power, the deterioration in financial and
credit conditions, and the decline in trade and investment
at a global level. Additionally, the protracted military con-
flict between Russia and Ukraine, the more recent conflict
in the Middle East, volatile US-China relations and the re-
sulting global uncertainty have continued to adversely im-
pact energy, commodity and food markets, slowing the
normalization of inflationary pressures on a global scale.
In the United States, the economy performed well above
market expectations in the 4th Quarter, with GDP expand-
ing by 3.1% on an annual basis, compared with 2.9% in the
4th Quarter of 2022.
Private consumption spending began to realign with real
incomes during the year, as excess savings accumulat-
ed during the pandemic continued to decline, especially
among low-income households. However, a general eas-
ing in the inflationary pressures created by the surge in
energy commodity prices in the previous year, a very re-
silient labor market and strong domestic demand buoyed
GDP, which is expected to have grown by 2.5% on an annu-
al basis, up from 1.9% the previous year.
In the euro area, macroeconomic conditions experienced
a period of stagnation, dragged down by the restrictive
monetary policy stance, the impact of high inflation on
consumers’ real incomes, weak external demand and in-
dustrial weakness. The real economy is expected to have
entered a technical recession in the 4th Quarter, with a
contraction of 0.1% on a quarterly basis in the last three
months of the year confirming that already recorded in the
previous period. With regard to inflationary pressures, final
consumer good prices began to slow in the last quarter of
the year thanks to the restrictive monetary policy stance
implemented by the European Central Bank, weak domes-
tic demand and falling energy prices, with inflation at 5.5%
year-on-year, down from a peak of 8.4% in 2022.
In Italy, economic activity displayed clear signs of flagging,
with GDP expected to grow by 0.7% on an annual basis
after the strong rise of 3.9% recorded the previous year.
Private consumption has been hit by high inflation, while
tighter financial conditions have dragged down invest-
ment. Subdued external demand also affected exports. By
contrast, consumer prices recorded positive signs, with
inflation falling sharply in the last quarter thanks to signifi-
cant base effects resulting from the moderation of energy
prices.
In Spain, the economy performed better than the Europe-
an average thanks to a strong contribution from services,
with GDP expected to grow by 2.4%. After a substantial
decline in inflationary pressures in the first half of the year
driven by the normalization of energy prices, the second
half of the year was characterized by rebound, with aver-
age annual inflation standing at 3.4% in 2023, compared
with 8.3% in 2022.
In Latin America, inflation slowed in 2023, although the
decline differed depending on the country. In Brazil, the
economy registered faster-than-expected GDP growth in
2023, expanding by an estimated 2.9% on an annual basis.
In the first half of the year, growth was driven by the ex-
traordinary performance of the agricultural sector and by
robust domestic demand driven by private consumption.
The economy was resilient in the second half, sustained
by an increase in exports and modest growth in house-
hold consumption, which benefited from more moderate
inflation and an improvement in the labor market. Inflation
decelerated sharply compared with 2022 (the annual in-
flation rate came to 4.6% in 2023), reflecting a restrictive
monetary policy stance and a decline in energy and ser-
vice prices.
In Chile, zero growth is expected for GDP in 2023, after
the 2.5% growth recorded in 2022. In the first half of the
year, the tightening of financial conditions due to the re-
strictive policy stance adopted by the central bank and the
uncertainty connected with the constitutional reform pro-
cess slowed economic activity. In the second half, howev-
er, growth was buoyed by the weakness of global demand
and rapid disinflation (the annual inflation rate was 7.7%
in 2023, compared with 11.6% in 2022), which prompted
the Chilean central bank to cut interest rates by 300 basis
points.
In Colombia, economic activity slowed sharply in 2023
compared with the previous year, with GDP growing by an
estimated 1.0% on an annual basis, a sharp decline from
the 7.3% registered in 2022. Persistent inflation, combined
with high interest rates for a prolonged period, adversely
impacted demand, accompanied by a slowdown in invest-
ment and a decline in exports. Inflation slipped below 10%
only in December, posting an annual average of 11.8%. The
slow process of disinflation enabled the central bank to
reduce interest rates by only 25 basis points at the end of
the year.
Peru saw the economy contract by an estimated 0.5% in
2023, after posting growth of 2.7% in 2022. Political and
social instability, greater-than-expected climate anom-
alies associated with El Niño and high food prices due
to lower agricultural production generated an especially
sharp contraction in economic activity in the first half of
Reference scenario
51
the year. The inflation rate was 6.3% in 2023, compared
with 7.9% in 2022. This decline prompted the central bank
to cut interest rates by 100 basis points in the second half
of the year.
In Argentina, 2023 was characterized by a severe eco-
nomic crisis that led to the devaluation of the Argentine
peso and continued hyperinflation. GDP contracted by
an estimated 1.2% on an annual basis, while inflation rose
to 127.9%. The currency devaluations implemented at the
end of 2023, which are intended to foster the country’s
export competitiveness, and the political uncertainty as-
sociated with the presidential elections in October have
fueled the inflationary spiral.
Inflation
2023
2022
Change
6.0
3.4
5.9
9.8
5.7
5.9
127.9
4.6
7.7
11.8
5.6
6.3
4.1
3.9
8.7
8.3
13.8
12.0
6.7
6.9
70.7
9.3
11.6
10.2
7.9
7.9
8.0
6.8
GDP
2023
0.7
2.4
2.2
2.1
(1.2)
2.3
3.2
2.9
-
1.0
3.3
(0.5)
1.0
2.5
0.5
(2.7)
(4.9)
(7.9)
(2.2)
(1.0)
(1.0)
57.2
(4.7)
(3.9)
1.6
(2.3)
(1.6)
(3.9)
(2.9)
2022
3.9
5.8
6.8
5.7
5.0
4.6
(2.1)
3.1
2.5
7.3
3.9
2.7
3.8
1.9
1.9
%
Italy
Spain
Russia
Romania
India
South Africa
Argentina
Brazil
Chile
Colombia
Mexico
Peru
United States
Canada
%
Italy
Spain
Portugal
Greece
Argentina
Romania
Russia
Brazil
Chile
Colombia
Mexico
Peru
Canada
United States
South Africa
52
Integrated Annual Report 2023
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
2023
1.08
0.87
0.97
140.58
1.35
1.51
85.51
295.62
4.99
840.40
2022
1.05
0.85
1.00
131.55
1.30
1.44
69.80
130.87
5.16
873.60
4,320.20
4,261.77
3.74
17.74
23.80
82.60
18.46
3.83
20.11
16.58
78.63
16.37
Change
2.86%
2.35%
-3.00%
6.86%
3.85%
4.86%
22.51%
125.89%
-3.29%
-3.80%
1.37%
-2.35%
-11.79%
43.55%
5.05%
12.77%
The energy industry
Energy and other commodities in 2023
In 2023, prices on the European gas market registered a
strong downward trend, reflecting high levels of storage
and decreasing demand. On average, the TTF benchmark
price decreased by more than 65% compared with the
previous year, due to the easing of the supply risks that
emerged in 2022, the year in which gas flows ceased from
Russia, the main supplier to the European market.
However, the gas market remained highly volatile and very
sensitive to the upward shocks recorded during the year,
reflecting the fragility of the balance between supply and
demand, although prices never touched the levels reached
in 2022. Price volatility was moderated by the achievement
of a high percentage of filled storage (above 90%) before
the start of the winter season, which combined with mild
temperatures in November and December led to a sharp
reduction in gas prices in Europe in the final months of
2023, falling below €35/MWh.
The developments in gas prices, together with high levels
of storage, in turn drove a decrease in coal prices, which
in 2023 averaged $129/ton (-55.5% on the previous year).
The dynamics of the gas market have also made coal-fired
generation less attractive, discouraging its consumption
and encouraging accumulation of the commodity.
In the first half of 2023, oil prices declined in response to
the normalization of supply and expectations of a weak re-
covery in demand. During the second half, however, prices
jumped considerably, reaching a peak in September, re-
flecting the impact of additional cuts in supply combined
with growing demand. In the last quarter of 2023 the price
trend reversed again, with Brent prices falling below $75 a
barrel. In 2023, the European benchmark price averaged
$82 a barrel, 17% lower than the previous year.
Brent
API2
TTF
CO2
Copper
Aluminum
Lithium carbonate
Polysilicon
$/barrel
$/ton
€/MWh
€/ton
$/ton
$/ton
$/ton
$/ton
2023
82
129
41
84
8,495
2,256
36,762
16,441
2022
99
290
120
81
8,831
2,706
71,640
35,589
Change
-17.2%
-55.5%
-65.8%
3.7%
-3.8%
-16.6%
-48.7%
-53.8%
Reference scenario
53
In contrast to developments in other energy commodi-
ties, 2023 saw a slight increase in CO2 prices in the ETS,
which rose by about 4% compared with the previous year.
On a monthly basis, prices displayed a downward trend in
the second half of the year, mainly due to low demand for
allowances from both ordinary market participants and
speculative operators.
In the wake of developments in the second half of 2022,
weak economic growth and the increasingly tense geo-
political context dominated metals markets in 2023, exac-
erbated in the final part of the year by the resurgence of
conflict in the Middle East.
As often happens in commodity markets, China again had
a decisive impact on market balances and price trends.
Following the easing of logistical issues in 2022, fears of
a slowdown in growth and the crisis in the construction
sector dampened demand, and therefore prices, for the
Asian giant as well.
As regards base metals such as aluminum and copper, the
prices of which are highly correlated with economic and
industrial activity, the weakness of economic conditions
caused the prices of both to perform less strongly than
expected. Copper prices recorded an overall decrease in
the first half of 2023 before stabilizing from June onwards,
recording an average price of $8,495/ton in the year,
Electricity and natural gas markets
Electricity demand
Developments in electricity demand(1)
TWh
Italy
Spain(2)
Romania
Argentina
Brazil
Chile
Colombia
down by 3.8% compared with 2022. Aluminum performed
even worse, with the price remaining weak throughout the
year, closing 2023 with an average of $2,256/ton, down by
16.6% compared with the average for 2022.
A similar pattern was displayed by steel prices, which after
an initial rise at the beginning of the year, quickly retreated
and closed 2023 at an average price of $580/ton, down by
15% compared with 2022.
As regards the metals most closely involved in renew-
able energy technologies, such as lithium for batteries
or the polysilicon used in the manufacture of photovol-
taic panels, 2023 prices showed declines compared with
2022 that were even larger than those registered by base
metals. Lithium, which was adversely impacted by low-
er-than-expected demand for batteries and, above all, by
a strong expansion of supply, both internally in China and
from Australia and South America, saw 2023 prices fall
constantly during the year to close at an average price of
about $36,000/ton, down by almost 50% compared with
2022. Similar developments were registered for polysil-
icon prices, which following sharp declines beginning in
December 2022 remained very weak throughout 2023,
posting an average of about $16,000/ton, down by about
54% compared with 2022.
2023
306.1
239.9
54.0
145.9
653.8
83.4
80.0
2022
315.0
250.0
57.5
144.0
611.0
83.2
76.9
Change
-2.8%
-4.0%
-6.1%
1.3%
7.0%
0.2%
4.0%
(1) Gross of grid losses.
(2) National data.
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.
Electricity consumption in Europe decreased in 2023,
mainly reflecting high temperatures and a slowdown in
economic activity.
Italian electricity demand closed 2023 with a contraction
of 2.8% compared with 2022. Monthly electricity con-
sumption in the first nine months of 2023 was consistently
lower than the previous year, with a slight recovery in the
last quarter that was not sufficient to offset the losses ac-
cumulated in the previous months, again reflecting mild
temperatures and weak industrial activity. The decrease
recorded in Spain was larger at 4.0%, reflecting the slow-
down in the industrial and service sectors, combined with
the effect of milder temperatures. Demand in Romania
also fell sharply, recording a decrease of 6.1% compared
with the previous year.
54
Integrated Annual Report 2023
Latin American countries bucked the trend, with electric-
ity demand increasing compared with 2022, mainly sus-
tained by continuing favorable economic growth develop-
ments. Particularly large rises were posted in Brazil (+7.0%)
and Colombia (+4.0%), while more modest increases were
registered in Chile (+0.2%) and Argentina (+1.3%).
Electricity prices
Electricity prices
Italy
Spain
Average baseload
price 2023 (€/MWh)
Change in average
baseload price
2023-2022
Average peakload
price 2023 (€/MWh)
Change in average
peakload price
2023-2022
127.4
87.4
(175.7)
(80.3)
137.4
82.7
(200.3)
(86.3)
Electricity prices in Italy and Spain fell sharply in 2023
compared with 2022, reflecting the decrease in prices on
energy commodity markets during the year. More specifi-
cally, a sharp decrease in the price of gas, together with an
increase in renewable generation, caused electricity pric-
es in Italy to decrease by 58% compared with the previous
year. Less marked but still substantial was the decrease
registered in Spain (-48%), where prices in 2022 had ris-
en less than in other European countries, thanks to the
Price developments in the main markets
Eurocents/kWh
Final market (residential)(1)
Italy
Spain
Final market (industrial)(2)
Italy
Spain
strong presence of renewable generation and, above all,
to regulatory measures introduced to limit the impact of
the increase in gas prices. Consumer prices per kWh also
fell significantly compared with 2022, with the exception
of residential prices in Italy, which rose in the first half of
the year.
The table below summarizes final market prices for the
main consumption segments.
2023
2022
Change
0.3230
0.1534
0.2031
0.1085
0.2932
0.2773
0.2870
0.1917
10.2%
-44.7%
-29.2%
-43.4%
(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
2023
60.7
28.5
2022
67.5
31.3
Change
(6.8)
(2.8)
-10.1%
-8.9%
The underlying factor in the decline in gas prices was a de-
crease in gas consumption. In 2023, demand contracted
sharply compared with the previous year. In Italy and Spain,
gas demand decreased by 10.1% and 8.9% respective-
ly, reflecting the mild temperatures recorded during the
year, an increase in electricity generation from renewable
sources and the continued weakness of industrial produc-
tion, which is still below pre-crisis levels.
Reference scenario
55
Italy
Natural gas demand in Italy
Billions of m3
Distribution grids
Industry
Thermal generation
Other(1)
Total
2023
26.7
11.5
21.2
1.3
60.7
2022
28.8
11.9
25.1
1.7
67.5
Change
(2.1)
(0.4)
(3.9)
(0.4)
(6.8)
-7.3%
-3.4%
-15.5%
-23.5%
-10.1%
Includes other consumption and losses.
(1)
Source: Enel based on data from the Ministry for Economic Development and Snam Rete Gas.
In Italy, demand decreased by 10.1% compared with 2022.
Analyzing consumption by sector, thermal generation regis-
tered a particularly large decline (-15.5%), mainly due to the
replacement of gas generation with renewable generation.
This is followed by distribution grids (-7.3%), where the de-
crease reflected mild temperatures in the first and fourth
quarters. Less marked but still significant was the decrease
recorded in industry (-3.4%).
Competitive and transition environment
Assessing the evolution of the energy transition process
is a fundamental input in the definition of Enel’s strategy.
This assessment is particularly critical in the current envi-
ronment, characterized, as discussed in earlier sections,
by growing geopolitical tensions, high interest and inflation
rates and supply chain difficulties. At the same time, the ob-
jectives of the Paris Agreement require an acceleration of
the energy transition, in order to limit the increase in aver-
age global warming to 1.5 °C compared with pre-industrial
levels. The recent COP 28 on climate change held in Dubai
established the objective of gradually transitioning away
from fossil fuels by 2050 and tripling renewables capacity
by 2030 (11 TW vs 3.6 TW in 2022), in line with the Interna-
tional Energy Agency (IEA) Net Zero(12) and the International
Renewable Energy Agency (IRENA) 1.5(13) scenarios.
The transition is shifting gears at the global level, as demon-
strated in particular by the increase in renewables capac-
ity, which saw over 500 GW of capacity installed in 2023
alone.(14) According to the IEA, the decline in all fossil fuels
will begin within this decade under current policy scenar-
ios.(15) Nonetheless, a broad gap persists between today’s
ambitions and holding the temperature increase to below
1.5 °C, as well as local differences in the pace of progress
towards the goals that each country has set itself. This gap
is largely connected with the need to introduce measures
to implement the long-term objectives, with a view to in-
creasing both the development of renewables and the rate
of electrification of consumption in the short term. More
specifically, in the IEA’s announced pledges scenario (APS),
capacity reaches a total of almost 10 TW, and is therefore
still not consistent with the latest agreements.
Furthermore, while on the one hand we are witnessing a
convergence of calls for energy security, accessibility and
sustainability, which is guiding everyone – political deci-
sion-makers, citizens and companies – towards an acceler-
ation of the clean electrification process, in reality the ener-
gy transition is proceeding along a path of disorderly poli-
cies (“disorderly transition”(16)) compared with expectations.
In some geographical areas, the speed of the transition is
not as rapid as expected, as measured by sales of electric
cars and heat pumps – the main drivers of the increase in
electricity demand. Although they are expanding steadily,
they do not yet have a significant impact on global energy
consumption.
In a year characterized by high interest rates, inflation and
supply chain difficulties, the utilities sector, and integrated
utilities in particular, has demonstrated resilience to external
developments, thanks in part to the normalization of com-
modity prices, as well as the balance achieved between in-
dustry, with investments to expand renewable generation
capacity and strengthen grid infrastructure, which lower
risk. This positioning reaffirms the crucial role of utilities in
the context of the transition and manifests the commit-
ment to energy security.
(12) Source: IEA, 2023, World Energy Outlook.
(13) Source: IRENA, 2023, World Energy Transition Outlook.
(14) Source: IEA, 2023, Renewables Report.
(15) Stated Policies Scenario (STEPS). Source: IEA, 2023, World Energy Outlook.
(16) According to the definition of the Network for Greening the Financial System, 2022, “Scenarios for central banks and supervisors”.
56
Integrated Annual Report 2023
With the evolution of markets, the electricity generation and
sales sector, together with related services and products, is
experiencing an increase in competition, often a reflection
of the strategic repositioning of companies in related sec-
tors. Although this is producing a potentially more challeng-
ing competitive environment due to the presence of multiple
operators, it also opens the way to new business opportu-
nities, the identification of new areas of value, the creation
of synergies and the development of potential partnerships.
Climate change and long-term scenarios
Enel promotes transparency in its climate-change impact
disclosures and works to demonstrate to its stakeholders
that it is tackling climate change with diligence and deter-
mination, consistent with the guidelines and requirements
set out in the most recent disclosure standards. The Group
was one of the first utilities to take on board the “Guidelines
on reporting climate-related information” published by the
European Commission in June 2019, which, together with
sustainability reporting standards such as the GRI Stan-
dards, represent a benchmark for the Group’s reporting on
climate change issues.
Scenario analysis and planning
The Group develops short-, medium- and long-term sce-
narios for macroeconomic, financial, energy and climate de-
velopments in order to support planning, capital allocation,
strategic positioning and the assessment of the risks and
resilience of the strategy. Scenario-based planning involves
defining alternative scenarios developed on the basis of a
number of key uncertainty variables, such as achieving the
goals of the Paris Agreement. The development of scenarios
allows companies to explore and model plausible alterna-
tive futures, designing various paths forward with different
timing and options, and ultimately to support strategic de-
cision-making with a view to maximizing opportunities and
mitigating risks.
To support analysis of scenarios and the evolution of the
external context, the Group identifies and analyzes short-,
medium- and long-term trends to develop an overview of
how the structural forces and macro-trends are influencing
the speed of the transition and of the expected impacts in
the energy sector, especially in the businesses in which Enel
operates. This mapping of trends provides a reference foun-
dation for developing actions to orient the positioning of the
business, seizing the opportunities offered by the context.
Scenario benchmarking
Benchmarking of external energy scenarios is a key starting
point in order to build robust internal scenarios. There are
many global, regional and national energy transition scenar-
ios published by various providers and designed for a wide
range of purposes, from government planning and policy-
making to the support of enterprise decision-making pro-
cesses. Benchmarking entails analyzing external transition
scenarios in order to compare results in terms of the energy
mixes, trends in emissions, and technology decisions and to
identify the main drivers of the energy transition for each.
Enel’s benchmarking of external energy transition scenarios
comprises the following steps.
1. Analysis of the context of global and national scenarios
for the countries in which we operate. The analysis of
scenarios, as well as the study of reports and datasets, is
supported by constant dialogue with the analysts of the
main scenario providers. Global energy scenarios are typ-
ically grouped by family based on the degree of climate
ambition, as follows:
• Stated-policies scenarios: based on current policies, or
Business-as-usual;
• Paris-Aligned scenarios: these are aligned with the Paris
Agreement, i.e. are compatible with the goal of limiting the
increase in average global temperatures to “well below 2
°C” above pre-industrial levels;
• Paris-Ambitious/Net Zero scenarios: global energy sce-
narios that take a path towards net-zero emissions by
2050, in line with the most ambitious goal of the Par-
is Agreement, i.e. to keep the average increase in global
temperatures to 1.5 °C, albeit with various probability in-
tervals.
2. Data collection, data analysis and identification of sce-
nario and energy transition drivers. The data regards
all the main metrics of the energy system, including, for
example: primary energy, total and sectoral final energy,
electrical capacity by technology, electricity generation
by technology, hydrogen production, electric vehicle
fleet, etc. The data analysis gives each provider an under-
standing of the key elements of the Business-as-usual/
Stated-policies scenarios and leads to the identification
of the drivers for accelerating the energy transition in the
Paris-Aligned and Paris-Ambitious scenarios.
3. Preparation of a summary of the data analysis and digital
representation of the main metrics of external scenarios,
to provide support for management in the decision-mak-
ing process for the Group’s scenario framework. This ac-
tivity is an integral part of internal planning processes.
Reference scenario
57
The main transition drivers:
electrification and renewables
Analyzing the various external scenarios, the consensus
among energy analysts is clearly that the main drivers
for achieving climate objectives are electrifying
final uses and increasing renewable generation in
both the medium and long term. In particular, in the
scenarios that envisage containing the increase in
the global average temperature to 1.5 °C, the rate of
electrification of consumption rises to over 50% by
2050, compared with 20% in 2022,(17) while the share
of renewable generation will reach around 90% of the
global electricity mix, compared with 30% in 2022.(18)
RENEWABLE GENERATION AND ELECTRIFICATION
IN GLOBAL TRANSITION SCENARIOS AT 2050
)
%
(
e
t
a
r
n
o
i
t
a
c
fi
i
r
t
c
e
E
l
~1.5 °C
Net Zero
<2 °C
Energreen
1.5 °C
Enerblue
Net Zero
Announced Pledges
<2 °C
Enerbase
Stated Policies
2022
Planned Energy
Economic
Transition
30
35
40
45
50
55
60
65
70
75
80
85
90
95
Share of renewable generation (%)
55
50
45
40
35
30
25
20
15
25
Source: based on data from IEA World Energy Outlook 2023, BNEF New Energy Outlook 2022, IRENA World Energy Transition Outlook 2023 and Enerdata
Enerf uture 2023.
(17) IEA, 2023, World Energy Outlook: 53%; IRENA, 2023, World Energy Transition Outlook: 51%.
(18) IEA, 2023, World Energy Outlook: 89%; IRENA, 2023, World Energy Transition Outlook: 91%.
58
Integrated Annual Report 2023
Enel΄s energy transition and climate change scenarios
Enel develops scenarios within an overall framework that
ensures consistency between the energy transition sce-
nario and the climate physical scenario:
• the “energy transition scenario” describes how energy
production and generation evolve in the various sec-
tors in a specific economic, social, policy and regulatory
context;
• the issues connected with future trends in climate vari-
ables (in terms of acute and chronic manifestations)
define the “physical scenario”.
GRANULARITY &
EXTENDED
GEOGRAPHICAL
COVERAGE
FORWARD-
LOOKING METRICS
& KPIs
AUTOMATION
AND ADVANCED
ANALYTICAL
TECHNIQUES
INTEGRATION OF
INTERDEPENDENCIES
OPEN DATABASES
AVAILABLE TO
STAKEHOLDERS
More than 150
countries monitored
for analysis of
country risk and
macroeconomic-
fi nancial scenarios
Broad coverage
of market and
geographical
indicators and
start ing-point focus
areas
Climate scenario
data available with
worldwide high-
resolution coverage
Main countries of
interest for Enel.
Developed to
manage integrated
business models
Monitoring of market
expectations and
sensitivity analysis
of new social
and technology
paradigms
Monitoring of trends
in electricity demand
and price volatility.
With analysis of
regulatory and
transition impacts
Standard and/
or ad hoc
metrics to assess
developments in
future scenarios
Development
of scenarios by
economic sector
to identify trends in
electrifi cation and
effi ciency
General equilibrium
models and
machine-learning
techniques to
manage big data
Incorporation of
social-environmental
eff ects in analyses
to quantify eff ects of
actions taken (e.g., TSI)
Periodic updating on
interactive platforms
with optimization for
graphical analysis
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.
MACROECONOMICS
AND FINANCE
ENERGY
CLIMATE
INTEGRATED
SYSTEM MODELS
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 neces-
sary to interpret phenomena that are complex and – in the
case of climate scenarios – at very high resolution, require
a continuous dialogue with both external and Enel internal
sources. In order to evaluate the effects of physical and
transition phenomena on the energy system, the Group
makes use of models that, for the main Group countries
involved in the analysis, describe the energy system in
terms of specific technological, socio-economic, policy
and regulatory aspects.
Reference scenario
59
The adoption of energy and physical scenarios and their
integration into corporate processes take account of the
most recent climate-change reporting standards and en-
able the assessment of the risks and opportunities con-
nected with climate change. The process that translates
scenario phenomena into useful information for industrial
and strategic decisions can be summarized in five steps.
F I V E S TEPS
1
2
IMPACT
ASSESSMENT
5
3
4
1.
Identification of trends and factors relevant to the
business (e.g., electrification of consumption, heat
waves, etc.)
2.
Development of link functions connecting climate/
transition scenarios and operating variables
3.
Identification of risks
and opportunities
4.
5.
Calculation of impacts on business
(e.g., change in performance, losses, Capex)
Strategic actions: definition and implementation
(e.g., capital allocation, resilience plans)
Enel’s energy transition scenarios
An energy transition scenario describes how energy pro-
duction and consumption can evolve in a specific geopolit-
ical, macroeconomic and regulatory and competitive con-
text consistent with the available technological options. This
corresponds to a certain trend in greenhouse gas (GHG)
emissions and a climate scenario and, therefore, a certain
increase in temperature by the end of the century com-
pared with pre-industrial levels. It should be noted that the
resulting climate scenario is not deterministic with respect
to carbon dioxide emissions. For each climate scenario, the
IPCC also always provides both the median value for global
warming in 2100 and the very likely range (i.e. the interval
between the 5th and 95th percentiles).
The main assumptions considered in developing the Enel
energy transition scenarios concern the macroeconom-
ic and energy context, local policies and regulatory mea-
sures, the evolution, costs and adoption of energy pro-
duction, conversion and consumption technologies.
The Reference scenario for planning is a Paris-Aligned
scenario, calling for achievement of the objectives of the
Paris Agreement, i.e. keeping the increase in the global av-
erage temperature below 2 °C compared with pre-indus-
trial levels, with a level of climate ambition that is higher
than Business-as-usual, but without necessarily assuming
the global achievement of the Net Zero 2050 target, given
the current global level of cumulative ambition and the de-
celeration of the energy transition caused by the impact
on certain transition variables of current macroeconomic
and energy conditions at the local level.
In order to assess the risks and opportunities inherent in
the energy transition, alternative scenarios to the refer-
ence framework have been defined on the basis of the de-
gree of climate ambition assumed at the global and local
level. These comprise: a Slower Transition scenario, char-
acterized by an energy transition in which the near-term
slowdown in the transition in certain areas has a greater
overall impact in the medium term, and an Accelerated
Transition scenario, with greater ambition compared with
the Reference scenario, in particular as regards certain
variables.
The assumptions for trends in commodities prices un-
derlying the Reference scenario are consistent with the
external scenarios that achieve the objectives of the Par-
is Agreement. More specifically, we assume sustained
growth in the price of CO2 through 2030, caused by a
gradual reduction in the supply of allowances as demand
60
Integrated Annual Report 2023
increases, as well as a significant decrease in the price of
coal due to declining demand. As for gas, we expect pric-
ing 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.
BRENT ($/barrel)
API2 ($/ton)
82
~74
~77
~91
~64
129
~83
~85
~110
~60
2023(1)
2030
2023(1)
2030
CO2 EU - ETS (€/ton)
TTF (€/MWh)
~150
~120
~ 128
~115
84
41
~30
~26
~30
~16
2023(1)
2030
2023(1)
2030
Enel scenario
Average benchmark(2)
Max benchmark
Min benchmark
(1) Actual.
(2)
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.
The alternative scenarios envisage both an acceleration
in decarbonization, driven by regulation, and at the same
time a more rapid decline in demand for fossil fuels, which
inevitably translates into lower prices for these commod-
ities by 2030. In the case of a slower transition, fuel de-
mand will reach its peak more gradually, and this will sup-
port energy commodity prices.
With regard to full achievement of the Paris Agreement
objectives, i.e. to stabilize global average temperatures to
within +1.5 °C, there remain uncertainties that a number
of countries could remain on business-as-usual trajec-
tories and not adopt effective measures to reduce their
emissions in a timely manner, thereby slowing the decar-
bonization process towards net-zero emissions by 2050.
Reference scenario
61
Nevertheless, the Enel Group operates a business model
and has defined strategic guidelines that are in line with
the maximum ambition of the Paris Agreement objectives,
i.e. they are consistent with an increase of 1.5 °C in the av-
erage global temperature by 2100, as certified by the Sci-
ence Based Targets initiative (SBTi). Enel has set a goal for
2040 to achieve zero direct emissions (Scope 1), with to-
tally renewable electricity generation and zero emissions
connected with retail energy sales (Scope 3).
Local transition scenarios
The scenarios have been defined at the local level using
two complementary approaches:
• in the main countries in which we operate, the Group
has developed dedicated models for the simulation
of the long-term equilibrium of the entire energy sys-
tem. The values of the scenario variables of relevance
to the activities of the Group were then calculated us-
ing those models with a view to minimizing costs for
the system, imposing a constraint on long-term CO2
emissions consistent with the achievement of the Paris
Agreement objectives and interim constraints dictated
by policies in existence or being adopted in each coun-
try, taking due account of short-term market dynamics
and the diffusion of technologies particular to each of
those countries;
• for the rest of the countries involved, the main scenario
variables were determined by applying statistical anal-
ysis to internal and consensus data in relation to exter-
nal scenarios aligned with the objectives of the Paris
Agreement as provided by national and international
accredited bodies.
The definition of internal transition scenarios was prompt-
ed by the need for greater modeling flexibility and greater
geographical and operational granularity for the main vari-
ables that impact Enel’s different businesses compared
with the scenarios that the main external providers can
provide. The latter are typically produced and published at
a global or regional level, with some exceptions for partic-
ularly large countries, which only rarely correspond to the
countries in which the Group is present or has an interest.
Italy
For Italy, the Reference scenario takes account of the re-
cent developments in European climate and energy legis-
lation. The results at 2030 are therefore comparable with
those contained in the draft National Integrated Energy
and Climate Plan (NIECP), published in June 2023, with
certain elements added to ensure greater fit with current
market dynamics. The Slower Transition scenario has been
constructed assuming a slower energy transition, with less
rapid development of renewables capacity, electric mobil-
ity and green hydrogen production. The Accelerated Tran-
sition scenario assumes a quicker reform of authorization
processes and support mechanisms for renewable energy
plants, which accelerates installation, and lower costs for
green hydrogen production technologies.
Spain
For Spain, the Reference scenario also envisages a level of
climate ambition and objectives for renewables and en-
ergy efficiency that take account of recent developments
in European climate and energy legislation and is there-
fore comparable with the draft NIECP published in June
2023. The scenario envisages rapid growth in renewables,
particularly solar, in the next few years. It differs from the
NIECP draft at 2030 in its assumption of slower develop-
ment of green hydrogen.
The alternative Slower Transition scenario assumes a lag
in the penetration of renewables, green hydrogen and
electric technologies, in particular with regard to private
automobiles and the electrification of domestic con-
sumption. The Accelerated Transition scenario envisages
a more rapid implementation of authorization procedures
for renewables, increasing annual installation levels, and a
development of green hydrogen consistent with the draft
NIECP, as well as a further effort to achieve energy savings
in buildings.
Brazil
For Brazil, the Reference scenario envisages an increase in
electrification at 2030, with a growing level of renewables
generation, in particular solar and wind, and the start of
green hydrogen production after 2027, with a more ambi-
tious view compared with the most recent energy plan.(19)
In the transport sector, it takes account of biofuel incen-
tive policies and assumes an increase in electrification. The
Slower Transition scenario is constructed on the assump-
tion of a less optimistic macroeconomic environment than
the Reference scenario, especially in the years up to 2030,
with slower expansion of renewables capacity and a con-
sequent slower trend line in emissions reduction. The Ac-
celerated Transition scenario goes beyond the ambition of
the Reference scenario regarding the speed of decarbon-
ization, mainly after 2030, assuming an acceleration in the
penetration of renewables, green hydrogen and storage.
(19) Brazil’s most recent energy plan is from 2022 (Plano Decenal de Energia 2031); an update is expected in 2024.
62
Integrated Annual Report 2023
Chile
As far as Chile is concerned, the Reference scenario
is consistent with the Net Zero scenario defined in the
government’s PELP document (Planificación Energética
a Largo Plazo 2023-2027), published in 2021, in terms of
emissions reductions, and includes ambitious targets for
the production and export of green hydrogen. The Slower
Transition scenario takes a more measured approach, us-
ing more conservative macroeconomic growth assump-
tions with no additional energy or climate policies beyond
those already in place. The Accelerated Transition scenario
achieves net-zero emissions by 2050 and, compared with
the Reference scenario, provides for more ambitious goals
for the export of green hydrogen, an acceleration in the
electrification of the residential and industrial sectors, and
the phase-out of coal by 2030.
Colombia
As for Colombia, the Reference scenario envisages re-
ducing emissions by 40% by 2030 compared with 2021, a
moderately less ambitious target than the National Deter-
mined Contribution (NDC) objective,(20) and close to zero
emissions in the electricity sector by 2050. In the Refer-
ence scenario, renewables capacity increases consider-
ably by 2030, and envisages further growth connected
with green hydrogen after 2030, albeit more conservative-
ly compared with the expectations set out in the national
strategy.(21) The Slower Transition scenario is characterized
by emissions trends consistent with the Actualización sce-
nario in the government strategy document,(22) which as-
sumes more conservative macroeconomic growth and no
additional energy or climate policies beyond those already
in place. The Accelerated Transition scenario envisages an
acceleration of the electrification process in the residen-
tial and industrial sectors, together with greater growth
expectations for the use of renewable sources.
The physical climate scenario for adaptation actions
Within the framework delineated above, each scenario
narrative has been developed so as to ensure consistency
between the energy transition scenarios and the climate
scenarios.
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, namely short-lived but intense phe-
nomena, such as flooding, hurricanes etc. with poten-
tial impacts on assets (e.g., physical losses and business
interruptions);
• chronic phenomena related to structural changes in the
climate, such as the rising trend in temperatures, rising
sea levels etc., which may cause persistent changes in the
output of generation plants and in electricity consump-
tion profiles in the residential and commercial sectors.
The projected future behavior of these phenomena is an-
alyzed by selecting the best data available from the output
data of climate models at different resolution levels and
historical data.
The Group has selected three of the global climate path-
ways developed by the IPCC, which are in line with those of
the IPCC’s sixth Assessment Report (AR6). These scenarios
are associated with emission patterns linked to a level of
the Representative Concentration Pathway, each of which
is connected to one of the five scenarios defined by the
scientific community as Shared Socioeconomic Pathways
(SSPs). The SSP scenarios include general assumptions
concerning population, urbanization, etc. The three physi-
cal scenarios 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). In the analyses that consider both
physical and transition variables, the Group associates
the SSP1-RCP 2.6 scenario with the Reference and Ac-
celerated Transition 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.(23) In the analyses that consider both
physical and transition variables, the Group associates
the SSP2-RCP 4.5 scenario with the Slower Transition
scenario.
• SSP5-RCP 8.5: compatible with a scenario where no
particular measures to combat climate change are im-
(20) NDC presented by Colombia in 2020, which provides for a 49% reduction in emissions by 2030 compared with 2021.
(21) Hoja de Ruta del Hidrógeno Colombia, 2021.
(22) Hoja de Ruta de la Transición Energética Justa, 2023.
(23) Climate Action Tracker Thermometer, estimates of global heating at 2100 considering existing policies and actions, and 2030 targets only (December 2023
update).
Reference scenario
63
plemented. This scenario forecasts an increase in glob-
al temperatures of about 4.4 °C from pre-industrial lev-
els by 2100.
The Group considers RCP 8.5 to be a worst-case climate
scenario used to assess the effects of physical phenom-
ena in a context of particularly significant climate change,
but it is currently deemed not very likely. This RCP 2.6
scenario is used both to assess physical phenomena and
perform analyses that consider an energy transition con-
sistent with most ambitious mitigation 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 considers
data and analyses of public bodies, universities, and pri-
vate-sector entities.
The climate scenarios are global and must be analyzed at
the local level in order to determine their impact in the ar-
eas of relevance to the Group. Among active partnerships,
collaboration is under way with the Earth Sciences De-
partment of the International Centre for Theoretical Phys-
ics (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.(24) The
main variables are temperature, rain and snowfall, and so-
lar radiation. Compared with past analyses, current studies
are based on the use of multiple regional climate models:
the one of the ICTP along with other simulations, which
have been selected as being representative of the set of
climate models currently available in the literature.(25) 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 bi-
as-free analysis, mediating the different assumptions that
could characterize the individual model.
For certain specific climatic variables, such as wind gusts,
the Group also uses other providers specialized in that
particular phenomenon.
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, Central America, North Amer-
ica and Africa, obtaining – thanks to the use of the set
of models – a more highly defined representation of the
physical scenario. Similarly, the Group is also analyzing
data related to climate projections for Africa, Southern
Asia and Southeast Asia, thereby covering all of the main
geographical areas in which the Group is present at the
global level.
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 uniform assessment of climate risk.
Some of these phenomena entail high levels of complexity,
as they depend not only on climate trends but also on the
specific characteristics of the territory and require further
modeling to obtain a high-resolution representation. For
this reason, in addition to the climate scenarios provid-
ed by ICTP, the Group also uses natural hazard maps. This
tool makes it possible to obtain, with a high spatial reso-
lution, recurrence intervals for a series of events, such as
storms, hurricanes and floods. As described 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 under way to be able to take
advantage of this information developed in accordance
with climate scenario projections.
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 cli-
mate variables of interest to us. These sources include the
output from the climate and regional models CMIP6(26) and
CORDEX.(27) 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 climate 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 resolution.
(24) The climate forecasts mainly cover the RCP 2.6 and RCP 8.5 scenarios. Where available, the RCP 4.5 scenario is also provided. Otherwise, it is derived from
the other scenarios using a pattern-scaling approach.
(25) The number of models used varies depending on the RCP scenario.
(26) https://www.wcrp-climate.org/wgcm-cmip/wgcm-cmip6.
(27) https://cordex.org/.
64
Integrated Annual Report 2023
Physical scenario analysis – Integration of climate
scenarios within the Open Country Risk model
In addition to using high-resolution data to analyze the im-
pact of physical phenomena, the Group has also designed
a higher-level analysis framework that enables us to ob-
tain a country-level assessment of trends in certain glob-
al climate hazards in a manner that is consistent across
all regions. More specifically, we have adopted a modular
approach that will enable us to progressively upgrade our
analyses by including new physical phenomena and refin-
ing 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 re-
lated to drought. The possibility of introducing other phe-
nomena such as extreme wind and sea level rise is also
being evaluated. The phenomena are assigned a numeri-
cal index based on the global distribution to a resolution of
about 100x100 km and are summarized in a composite in-
dex. This has enabled us to include a dimension related to
climate change in the Open Country Risk model. This en-
ables the tool to include both the aspects considered by
the Open 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 “Macroeconomic and geopolitical trends”.
Physical scenario analyses
Acute phenomena
Heat waves
Extreme temperatures can be studied using the standard
indicator “Warm Spell Duration Index” (WSDI). This metric
considers heat waves characterized by at least six consec-
utive days with a maximum daily temperature above the
90th percentile of the historical distribution.(28)
In general, as can be seen in the following figure, in cen-
tral and southern Europe the number of days of acute
heat defined in accordance with the WSDI will increase in
all future scenarios in the 2030-2050 period compared
with the historical benchmark (1990-2020). In the RCP 2.6
scenario, most of the Italian peninsula will see an increase
in the average number of days per year with heat waves
(from +10 to +15 days) compared with a historical annual
average of around 20-25 days. This increase will be larg-
er in the Alpine areas bordering France and Switzerland
and in some areas in southern Italy, with a change of +15
to +20 days. The situation in Italy is also worsening in the
RCP 8.5 scenario, where the expected increases are up
to +30 days compared with the 1990-2020 period. Spain
will see similar changes, with heat waves also becoming
more widespread geographically and more frequent in the
2030-2050 period. Compared with past years character-
ized by around 20 warm-spell days, in the RCP 2.6 scenario
this phenomenon will increase by between +10 to +15 days
in almost all of Spain.
In the RCP 8.5 scenario, the duration of heat waves will be
even longer, especially in the southern part of the country
(mainly from +20 to +25 days, with peaks of up to +37 days
in certain coastal locations on the Mediterranean).
(28) The scientific literature offers various indicators for measuring the same physical phenomenon. Where necessary, Enel also calculates specific ad hoc
metrics to analyze acute events relevant to the various global business lines.
Reference scenario
65
RCP 8.5
RCP 2.6
Δ days –
RCP vs historical
0 • 5
5 • 10
10 • 15
15 • 20
20 • 25
25 • 30
30 • 35
35 • 40
40 • 43
Average change in number of days per year experiencing a heat wave (in accordance with WSDI definition) in the RCP 2.6 and RCP 8.5 (2030-2050) scenarios
compared with the historical benchmark (1990-2020) in central and southern Europe.
The number of days characterized by heat waves calcu-
lated according to the WSDI is also expected to increase
in the Americas in all future scenarios (see the following
figure).
Comparing the 2030-2050 period with the 1990-2020
period, South America should already experience a signifi-
cant increase in days of heat waves in the RCP 2.6 scenario,
especially in certain areas of Brazil, Colombia and northern
Chile. Central America, the western coast of North Amer-
ica and the southern part of the United States are also
forecast to see a significant increase in days characterized
by heat waves in the RCP 2.6 scenario in the 2030-2050
period compared with the benchmark.
In general, the increase in the number of days with heat
waves will be even more pronounced in the RCP 8.5 sce-
nario across the continent.
RCP 8.5
RCP 2.6
Δ days –
RCP vs historical
-2 • 0
0 • 10
10 • 20
20 • 30
30 • 40
40 • 50
50 • 60
60 • 70
70 • 80
> 80
Average change in number of days per year experiencing a heat wave (in accordance with WSDI definition) in the RCP 2.6 and RCP 8.5 (2030-2050) scenarios
compared with the historical benchmark (1990-2020) in the Americas.
Extreme precipitation
Intense rainfall can be analyzed by estimating the change in
daily rainfall above the 95th percentile, calculated in terms
of average annual millimeters in the reference periods.
In central and southern Europe, the expected change in
acute precipitation in the 2030-2050 period compared
with 1990-2020 varies from area to area and depending
on the scenario considered.
Specifically, under the RCP 2.6 scenario, Italy is expect-
ed to experience a more significant increase in extreme
rainfall in the north-east and along the Tyrrhenian coast,
while the phenomenon is expected to decrease along the
Adriatic coast, in the south and the islands. Under the RCP
8.5 scenario, extreme precipitation is expected to increase
in most of Italy, except in the islands and some areas of the
center and south-west, where the data point to a slight in-
crease. In Spain, changes are expected in extreme precipi-
tation in most of the territory already in the RCP 2.6 scenar-
io. In particular, intense precipitation will increase slightly in
some areas of the north, but will decrease in the south-east.
In the RCP 8.5 scenario, heavy rainfall will decrease across
the south of the country and the north-west.
66
Integrated Annual Report 2023
Future changes in intense rainfall will differ considerably
in the Americas as well. In some areas of South America,
such as north and east Brazil, northern Argentina and cen-
tral-southern Chile, reductions from the historical trends
are projected to occur under the RCP 2.6 scenario. In oth-
er areas, however, such as in most of Colombia and other
areas of Brazil, intense rainfall is forecast to increase. In al-
most all of North America, acute precipitation is expected
to increase in the RCP 2.6 scenario compared with the his-
torical average (although the magnitude of these increas-
es varies from area to area). In Mexico, however, the future
change varies depending on the area. Finally, under the
RCP 2.6 scenario, intense rainfall will decrease in the cen-
tral and southern areas of Central America. In other areas,
rainfall levels will remain unchanged or increase slightly.
Fire risk
Fire risk can be studied using 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 order
to support the business in properly managing this risk. To
give a more complete representation of fire risk, we can
supplement analysis on this acute phenomenon with a
study of vegetation indices, since vegetation can serve as
fuel and increase the probability of a fire spreading.(29)
In central and southern Europe, the number of days per
year experiencing extreme fire risk (i.e. those with a FWI
value > 45) will tend to increase almost everywhere in the
2030-2050 period compared with the 1990-2020 bench-
mark. The studies conducted for Italy show that the num-
ber of days at high risk increase in all scenarios, especially
in the summer. This change will be even more accentuated
under the RCP 8.5 scenario and mainly affect the islands
and southern regions of the country. In general, in these
areas the increase in the number of days at extreme risk
ranges from approximately +6 to +11 days compared with
the historical average. The area of Spain that will see the
greatest increase in fire risk is the central south in all fu-
ture scenarios. This increase is larger in the RCP 8.5 sce-
nario than in the RCP 2.6 scenario.
In the Americas, the expected evolution of extreme fire risk
varies from area to area. In South America, in the RCP 2.6
scenario the number of days at high first risk increases in
most of Brazil and Chile and in the north-west and south of
Argentina. In the remaining areas of the macroregion it re-
mains unchanged or decreases slightly. In North and Cen-
tral America, high fire risk remains essentially unchanged
in most of the macroregion in the RCP 2.6 scenario. Only
in the western areas of the United States and Mexico are
increases in the number of days at high risk expected, with
the increase rising as the scenario become more severe.
Cold snaps
A number of indicators can be used to measure extreme
cold-related events.(30) One of these is the frost days index,
i.e. the average number of frost days per year.(31)
Comparing the RCP 2.6 scenario (2030-2050) with the
historical benchmark (1990-2020), in central and southern
Europe the number of frost days will remain unchanged
or decrease slightly in all countries. Only in some areas,
such as the Alps in Italy and the Pyrenees in Spain, will the
number of days of intense cold decrease (from -5 to -10
days compared with the historical benchmark). Under the
RCP 8.5 scenario, the decrease in frost days is expected
to be more geographically extensive. In northern Italy and
in some Apennine areas of the peninsula and in part of
northern and central Spain, the forecast is for a reduction
of up to 15 days of frost per year, again compared with the
benchmark period.
In most of the Americas, the number of frost days will re-
main unchanged under both RCP scenarios; only in some
areas are decreases expected. Latin America will experi-
ence a decline in frost days in some central-western and
southern areas, and the decrease will be larger under the
RCP 8.5 scenario compared with the RCP 2.6. Frost days
will decrease in North America and Central America, es-
pecially in the western part of the macroregion, with larger
and more extensive declines under the RCP 8.5 scenario.
Note that a decrease in frequency does not exclude an in-
crease in the intensity of these acute events, an issue that
the Group is currently investigating.
(29) One of the metrics used is obtained using NASA data for the Normalized Difference Vegetation Index (NDVI). NDVI quantifies vegetation by measuring the
difference between near-infrared light (which vegetation reflects strongly) and red light (which vegetation absorbs). This is a good indicator of vegetation
growth and density. The higher the NDVI, the more abundant and healthier the vegetation.
(30) In addition to the standard indices reported in the scientific literature, ad hoc metrics have also been developed to better study the phenomenon at the
technology level.
(31) Frost days are days in which the minimum temperature (Tmin) is less than 0 °C.
Reference scenario
67
Europe: heat waves and climate change
In the summer of 2023, Europe was overwhelmed
by heat waves, with exceptionally high temperatures
combining with drought and wind to drive the
spread of fires. These events fall within a pattern of a
significant increase in extreme physical phenomena
in recent decades. However, it is important to
understand how and to what extent these events
are connected to climate change driven by human
activities. This is not an easy task, but studies of
individual events can help. “Event attribution” science
seeks to do just this, providing explanations based
on science and thus avoiding the dissemination of
misleading or false information. By studying surface
pressure, temperature variables and past events, it
is possible to establish that phenomena such as the
long and intense heat wave of July 2023 (Cerberus)
are above all attributable to natural climate variability.
By contrast, the anomalous heat wave of August 21-
23 that hit central and western Europe was a unique
event that can largely be attributed to anthropogenic
climate change.(32)
In general, event attribution studies indicate that, on
average, in Europe:
• a heat wave that in the pre-industrial climate
would have occurred 1 time every 10 years is now
expected to occur 2.8 times within 10 years and will
be 1.2 °C warmer. With a rise of +2 °C by 2100, it
will occur 5.6 times and be 2.6 °C warmer;
• a heat wave that in the pre-industrial climate
would have occurred 1 time every 50 years is now
expected to occur 4.8 times over 50 years and will
be 1.2 °C warmer. With +2° C of global warming, it
will occur 13.9 times and be 2.7 °C warmer.
It should be emphasized that these numbers refer
to moderate heat waves. More extreme events may
be up to a hundred times more likely due to climate
change.
Chronic phenomena
Temperature
Chronic temperature changes can be analyzed to obtain
information about the potential effects on the cooling and
heating demand of local energy systems. The thermal re-
quirement has been measured using 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 tem-
perature, and Cooling Degree Days (CDDs), i.e. the sum, for
all days of the year with Taverage ≥ 24 °C, of the differences
between Taverage and Tinternal (assumed to be 21 °C), respec-
tively, for heating and cooling requirements. The country
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. Since CDD is
the variable that experiences the greatest change, the fig-
ure shows CDDs at high resolution for the historical data
and the average variation expected in the RCP 2.6 scenar-
io in the 2030-2050 period for Europe and South America.
The distribution of the population used as a weight for the
calculation at the national level is also shown.
(32) The conclusions on the heat waves that occurred in the summer of 2023 were derived from analyses conducted by members of the scientific community
using the experimental “ClimaMeter” framework. More information is available at the following link: https://www.climameter.org/home.
68
Integrated Annual Report 2023
Δ degrees/year –
RCP 2.6 vs historical
0 • 20
20 • 40
40 • 60
60 • 80
80 • 100
100 • 120
COOLING DEGREE DAYS (CDD)
Degree days
per year historical
0 • 100
100 • 200
200 • 300
300 • 400
400 • 500
500 • 600
600 • 700
700 • 781
POPULATION DISTRIBUTION
Population
(thousands of people)
0 • 22
22 • 289
289 • 995
995 • 2,599
2,599 • 7,320
7,320 • 2,715,581
COOLING DEGREE DAYS
(CDD)
POPULATION
DISTRIBUTION
Degree days
per year historical
0 • 500
500 • 1,000
1,000 • 1,500
1,500 • 2,000
2,000 • 2,500
2,500 • 3,000
3,000 • 3,038
Δ degrees/year –
RCP 2.6 vs historical
Population
(thousands of people)
-2 • 50
50 • 100
100 • 150
150 • 200
200 • 250
250 • 300
300 • 350
350 • 610
0 • 1.4
1.4 • 2.6
2.6 • 4.8
4.8 • 9.8
9.8 • 22.5
22.5 • 4,927.4
Reference scenario
69
In general, in 2030-2050 CDDs show a rising trend, always
exceeding the historical data, with increases in all the var-
ious scenarios. This agrees with the increase in average
temperatures predicted by climate models, which is then
also reflected in an increase in cooling needs. Heating
requirements also decline as temperatures increase, al-
though the rise is less pronounced than that in the cooling
requirement. The table reports the country-level percent-
age changes for the countries of greatest interest to the
Group under the RCP 2.6, RCP 4.5 and RCP 8.5 scenarios.
BRAZIL
HDD
-21%
-27%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
-34%
Δ RCP 8.5
(2030-2050
vs historical)
CHILE
HDD
CDD
25%
32%
18%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
CDD
113%
191%
35%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
-5%
-8%
-11%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
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Integrated Annual Report 2023
CDD
18%
24%
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
13%
Δ RCP 2.6
(2030-2050
vs historical)
CDD
60%
108%
45%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
CDD
57%
94%
38%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
Δ RCP 8.5
(2030-2050
vs historical)
COLOMBIA
HDD
-52%
-62%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
-72%
Δ RCP 8.5
(2030-2050
vs historical)
ITALY
HDD
-8%
-8%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
-16%
Δ RCP 8.5
(2030-2050
vs historical)
SPAIN
HDD
-4%
-4%
Δ RCP 2.6
(2030-2050
vs historical)
Δ RCP 4.5
(2030-2050
vs historical)
-16%
Δ RCP 8.5
(2030-2050
vs historical)
Reference scenario
71
Precipitation
Another chronic phenomenon of interest is the change in
total precipitation due to climate change, which could im-
pact hydroelectric generation. Changes in this phenome-
non in the areas of interest for the Group have therefore
been analyzed. The analysis of European catchment areas,
which compared the 2030-2050 forecast with 1990-2020,
points to no significant change, with a generalized slightly
downward trend in central and southern Italy and Spain
under the RCP 2.6 scenario.
As regards South America, the analyses, which compare
the same time intervals, show a downward trend in Ar-
gentina and Colombia. Brazil is projected to experience a
slight increase or decrease in total rainfall under the RCP
2.6 scenario depending on the group of catchment areas
considered. Finally, as with Argentina and Colombia, the
projections for Chile also point to a reduction in total rain-
fall in the scenario with the lowest emissions, but this may
have already manifested itself in recent years (with a real
decrease on historic norms).
Comparing the various RCPs (2030-2050) and the his-
torical model (1990-2020), expected total annual rainfall
tends to decline in Central America, while in North America
it will remain the same or increase depending on the area.
Overall effect of the transition and physical
scenarios on electricity demand
The use of integrated energy system models described in
the section “Local transition scenarios” makes it possible
to quantify the individual service demand of a country.
This makes it possible to discriminate the specific long-
term effects that a change in temperature can have on
energy demand. For this purpose, the Reference, Slower
Transition and Accelerated Transition scenarios described
above have been expanded to include the effect that tem-
perature increases have on energy demand (total, not just
electricity) for residential and commercial heating and
cooling, as measured in terms of Heating Degree Days
(HDDs) and Cooling Degree Days (CDDs).
The definition of a benchmark scenario consistent with
achieving the Paris objectives makes it possible to associ-
ate HDDs and CDDs consistent with the RCP 2.6 scenario
to the Reference scenario and the Accelerated Transition
scenario, which is characterized by a faster decline in
emissions. HDDs and CDDs consistent with RCP 4.5 were
instead associated with the Slower Transition scenario,
because it corresponds to a slower decline in greenhouse
gas emissions. To stress the analyses further, the latter
scenario was also associated with RCP 8.5.
Italy and Spain
For Italy, the change in the level of electricity demand be-
tween the two extreme scenarios considered (Slower and
Accelerated Transition) due to transition phenomena is
about 18 percentage points on average in the 2031-2050
period. Excluding the effect of electricity demand for
green hydrogen production, the difference in electricity
demand falls to 8%.
As regards Spain, the percentage differences due to tran-
sition phenomena are smaller than in Italy, since the exist-
ing National Energy Plan sets particularly ambitious climate
objectives. Consequently, less variability is expected in the
evolution of the energy system and therefore electricity
demand in the 2031-2050 period. The delta between the
two extreme cases considered (Slower and Accelerated
Transition) is around 10 percentage points on average
in 2031-2050. If we exclude the effect of electricity de-
mand for hydrogen production, the difference narrows to
around 2%.
For both countries, the speed of the energy transition has
a much greater impact on the level of electricity demand
than the effects of the increase in temperature deriving
from climate change, as the analyses performed show how
the latter causes demand to increase by less than one per-
centage point for both Italy and Spain.
72
Integrated Annual Report 2023
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
ITALY
Baseline
RCP 2.6
Reference
0.9%
Baseline
RCP 2.6
Reference
0.8%
0.6%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
-17.8%
-16.9%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 4.5
Slower
Transition
Italy – Average impact on electricity demand (2031-2050) of the three transition scenarios coupled with the associated RCP 2.6 and 4.5 scenarios.
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
SPAIN
Baseline
RCP 2.6
Reference
0.7%
Baseline
RCP 2.6
Reference
-5.9%
-5.1%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 4.5
Slower
Transition
4.6%
4.6%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
Spain – Average impact on electricity demand (2031-2050) of the three transition scenarios coupled with the associated RCP 2.6 and 4.5 scenarios.
Reference scenario
73
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
BRAZIL
Baseline
RCP 2.6
Reference
0.2%
Baseline
RCP 2.6
Reference
0.1%
3.4%
3.5%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
-5.8%
Temperature
eff ect
Transition
eff ect
-5.5%
Baseline
RCP 4.5
Slower
Transition
In order to further investigate the effect of temperature on
the transition scenarios and at the same time expand the
range of assumptions regarding climate change, a sen-
sitivity analysis was conducted by associating the Slower
Transition scenario to RCP 8.5 in addition to RCP 4.5. The
analysis found that on average the change in electricity
demand due to a deterioration in the climate scenario in
2031-2050 was negligible.
Effect of temperature and transition on electricity demand, average over the specified period of temperature and
transition contributions for different combinations of transition scenarios and climate pathways, with and without
green hydrogen
Reference to Slower Transition RCP 4.5 Reference to Slower Transition RCP 8.5
Reference to Accelerated Transition
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
2024-2030
2031-2050
-4.0%
-17.8%
0.0%
0.9%
-4.0%
-16.9%
-4.0%
-17.8%
0.0%
0.9%
-4.0%
-16.9%
Italy
without
H2V
2024-2030
2031-2050
Spain
2024-2030
2031-2050
Spain
without
H2V
2024-2030
2031-2050
-3.1%
-7.9%
-4.2%
-5.9%
-2.7%
-5.6%
0.0%
0.9%
-3.1%
-6.9%
0.1%
0.7%
0.0%
0.8%
-4.1%
-5.1%
-2.7%
-4.8%
-3.1%
-7.9%
-4.2%
-5.9%
-2.7%
-5.6%
0.0%
0.9%
-3.1%
-7.0%
0.1%
0.7%
0.1%
0.7%
-4.0%
-5.2%
-2.6%
-4.9%
1.0%
0.8%
1.0%
0.3%
3.1%
4.6%
2.2%
2.2%
0.0%
-0.1%
0.0%
-0.1%
0.1%
0.0%
0.0%
0.1%
1.0%
0.6%
1.0%
0.2%
3.2%
4.6%
2.2%
2.3%
Note that in future years greater than expected electrifi-
cation of heating in buildings could change both the sign
and the size of the temperature effect in both countries.
It is therefore necessary to monitor developments in the
share of electrification of heating during the annual review.
Latin America
In Latin America, the impact of temperature trends, quan-
tified through the Heating Degree Days (HDDs) and Cool-
ing Degree Days (CDDs) metrics, was estimated using inte-
grated energy system models for Brazil, Chile and Colom-
bia, similar to the approach adopted for Italy and Spain, as
discussed above. Econometric forecasting models based
on historical elasticity were used for Argentina.
In the case of Brazil, the transition effect considered in-
dividually (i.e. excluding the impact of an increase in tem-
perature), electricity demand in the Slower Transition sce-
nario is approximately 6% lower on average in 2031-2050
compared with the Reference scenario, given the different
levels of ambition of the two scenarios in both 2030 and
2050. In the Accelerated Transition scenario, the slightly
higher ambition in the Reference scenario is achieved via
faster electrification. Accordingly, the electricity demand
delta in 2031-2050 averages around a positive 3-4%. Also
in this case, the speed of the energy transition has a much
greater impact on the level of electricity demand than the
negligible effects of the increase in temperature deriving
from climate change.
74
Integrated Annual Report 2023
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
BRAZIL
Baseline
RCP 2.6
Reference
0.2%
Baseline
RCP 2.6
Reference
-5.8%
Temperature
eff ect
Transition
eff ect
-5.5%
Baseline
RCP 4.5
Slower
Transition
0.1%
3.4%
3.5%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
Brazil – Average impact on electricity demand (2031-2050) of the three transition scenarios coupled with the associated RCP 2.6 and 4.5 scenarios.
Here, too, a sensitivity analysis was carried out by associ-
ating the Slower Transition scenario with RCP 8.5 in ad-
dition to RCP 4.5. For Brazil, an assumption of a further
temperature increase produces an increase in long-term
demand of close to zero (2031-2050). The effect is not sig-
nificant given that the delta in the CCDs for Brazil is one of
the smallest among the countries analyzed.
Effect of temperature and transition on electricity demand, average over the specified period of temperature and
transition contributions for different combinations of transition scenarios and climate pathways, with and without
green hydrogen
Reference to Slower Transition RCP 4.5 Reference to Slower Transition RCP 8.5
Reference to Accelerated Transition
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
Brazil
2024-2030
2031-2050
Brazil
without
H2V
2024-2030
2031-2050
-3.6%
-5.8%
-3.5%
-6.2%
0.1%
0.2%
0.1%
0.2%
-3.5%
-5.5%
-3.3%
-6.0%
-3.6%
-5.8%
-3.5%
-6.2%
0.3%
-0.2%
0.3%
-0.2%
-3.3%
-5.9%
-3.2%
-6.4%
1.1%
3.4%
0.2%
3.4%
0.1%
0.1%
0.1%
0.1%
Total
impact
1.2%
3.5%
0.3%
3.5%
For Chile, electricity demand is reduced by transition ef-
fects considered individually by about 10% on average in
2031-2050 in the Slower Transition scenario compared
with the Reference scenario, given the different levels of
ambition of the two scenarios. This difference is main-
ly due to assumptions regarding the achievement of the
country’s ambitious targets for green hydrogen produc-
tion after 2030 set out in the document Planificación En-
ergética Nacional de Largo Plazo (PELP). If the effect of
electricity demand for hydrogen production – for which
the two scenarios have different levels of ambition in re-
lation to the different decarbonization trajectories – is
omitted, the difference declines to about 6%. In the Accel-
erated Transition scenario, the greater ambition of the en-
ergy transition is achieved through the implementation of
more stringent decarbonization policies to achieve great-
er electrification, greater penetration of green hydrogen
in industry and transport and increased exports of that
hydrogen. This leads to an average increase of about 11%
in electricity demand over the baseline of the Reference
scenario in 2031-2050. Excluding the effect of electricity
demand connected with the production of green hydro-
gen, electricity demand is an average of about 12% higher
than in the Reference scenario in the 2031-2050 period.
Once again, the speed of the energy transition has a much
greater impact on the level of electricity demand than the
increase in temperature caused by climate change.
Reference scenario
75
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
CHILE
10.9%
11.1%
Baseline
RCP 2.6
Reference
0.2%
Baseline
RCP 2.6
Reference
0.2%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
-10.3%
-10.1%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 4.5
Slower
Transition
Chile - Average impact on electricity demand (2031-2050) of the three transition scenarios coupled with the associated RCP 2.6 and 4.5 scenarios.
To stress the analyses further, the Slower Transition scenario
was also associated with RCP 8.5. For Chile, an assumption
of that further temperature increase produces an increase
in long-term demand of close to zero (2031-2050).
Effect of temperature and transition on electricity demand, average over the specified period of temperature and
transition contributions for different combinations of transition scenarios and climate pathways, with and without
green hydrogen
Reference to Slower Transition RCP 4.5 Reference to Slower Transition RCP 8.5
Reference to Accelerated Transition
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
Chile
Chile
without
H2V
2024-2030
2031-2050
2024-2030
2031-2050
-1.5%
-10.3%
-0.5%
-6.2%
0.2%
0.2%
0.4%
0.4%
-1.3%
-10.1%
-0.2%
-5.8%
-1.5%
-10.3%
-0.5%
-6.2%
0.2%
0.3%
0.5%
0.5%
-1.2%
-10.0%
0.0%
-5.7%
1.5%
10.9%
2.7%
11.5%
0.1%
0.2%
0.2%
0.5%
Total
impact
1.6%
11.1%
2.9%
12.0%
In the case of Colombia, transition effects reduce electric-
ity demand in the Slower Transition scenario by about 36%
in the period 2031-2050 compared with the Reference
scenario, mainly reflecting the significant difference in the
ambition of the two scenarios. The Slower Transition was
defined by taking as a starting point the most prudent sce-
nario in the national government plan (Hoja de Ruta de la
Transición Energética Justa), characterized by limited de-
carbonization, which therefore leads to a much lower level
of electrification than in the Reference scenario. On the
other hand, the difference between the Reference scenar-
io and the Accelerated Transition scenario shows an in-
crease of about 14% due to the transition alone, while the
climate effect is less than 1%. This reflects the increase in
electrification resulting from much more ambitious decar-
bonization goals. The effect of hydrogen is not particularly
relevant in the scenarios analyzed.
76
Integrated Annual Report 2023
CLIMATE AND ENERGY TRANSITION SCENARIOS:
IMPACT OF TEMPERATURE AND TRANSITION ON ELECTRICITY DEMAND
Reference RCP 2.6 to
Slower Transition RCP 4.5
Reference RCP 2.6 to
Accelerated Transition RCP 2.6
COLOMBIA
Baseline
RCP 2.6
Reference
0.1%
Baseline
RCP 2.6
Reference
0.2%
13.5%
13.7%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 2.6
Accelerated
Transition
-36.3%
-36.3%
Temperature
eff ect
Transition
eff ect
Baseline
RCP 4.5
Slower
Transition
Colombia - Average impact on electricity demand (2031-2050) of the three transition scenarios coupled with the associated RCP 2.6 and 4.5 scenarios.
Effect of temperature and transition on electricity demand, average over the specified period of temperature and
transition contributions for different combinations of transition scenarios and climate pathways, with and without
green hydrogen
Reference to Slower Transition RCP 4.5 Reference to Slower Transition RCP 8.5
Reference to Accelerated Transition
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
Colombia
2024-2030
2031-2050
Colombia
without
H2V
2024-2030
2031-2050
-2.3%
-36.3%
-2.2%
-36.2%
0.2%
0.1%
0.2%
0.0%
-2.0%
-36.3%
-2.0%
-36.1%
-2.3%
-36.3%
-2.2%
-36.2%
0.2%
0.1%
0.2%
0.0%
-2.1%
-36.3%
-2.0%
-36.1%
1.7%
13.5%
1.7%
14.7%
0.1%
0.2%
0.1%
0.2%
Total
impact
1.8%
13.7%
1.7%
14.9%
Finally, as regards Argentina, the analyses performed show
that an increase in temperature could increase electrici-
ty demand by between 0.4% and 0.8% (calculated as the
average of demand forecasts for the 2031-2050 period).
This estimate is highly dependent on the effect that mac-
roeconomic conditions in the country might have on elec-
tricity demand. As a result, it is affected by a significant
degree of uncertainty given the high volatility of the per-
formance of the Argentine economy.
Reference scenario
77
GROUP
STRATEGY
Determination of the Group’s strategy is based on an as-
sessment of options that will enable the sustainable gen-
eration of value for all stakeholders, ensuring flexibility and
focusing on risk mitigation.
Key to this is the assessment of the external environment
and its evolution. To determine the framework 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 pos-
sible. This analysis of what could happen in the external
landscape 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 defini-
tion of goals.
Today, this process is organized into the following main
activities:
• Strategic Dialogue: a continuous process of active di-
alogue throughout the year and across all Group func-
tions, through which the strategic topics for the evolu-
tion and growth of the Group are identified, analyzed,
discussed and addressed. This dialogue is part of a
strategic design phase, where communication among
executives makes a valuable contribution to developing
new strategic options, with an emphasis on the need
for cultural or organizational change and synergies be-
tween businesses.
• 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) analyses based on
stress testing for various factors, including the evolu-
tion of the industrial sector, technology, competitive
structure, climate variables and policies.
• Long-term positioning: consistent with the analyses
and decisions described in the previous points, and
basing on our ambitions for environmental and eco-
nomic-financial sustainability and the opportunities to
be seized on the market, the Group’s positioning is de-
fined with regard to the long-term industrial strategy.
• Analysis of ESG factors and assessment of materiality
in the field of sustainability: Enel assesses ESG issues in
order to identify and evaluate priorities for stakehold-
ers, conducting a double materiality analysis to deter-
mine the material issues that support the definition of
the objectives to be included in the strategic sustain-
ability planning. This analysis takes into consideration
the ESRS standards of the European Sustainability
Reporting Directive (CSRD) as well as numerous other
international standards (for example, the Global Report-
ing Initiative - GRI, SASB, SDG Compass, etc.).
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 for stakeholders.
The Group is among the leaders guiding the energy transi-
tion through the decarbonization of electricity generation,
digitalization of distribution grids and the electrification
of final consumption, which represent opportunities to
create value and to accelerate achievement of the Paris
Agreement objectives and the Sustainable Development
Goals set by the United National in the 2030 Agenda. The
Group also supports the principles of a just transition, as
defined in the Just Transition Guidelines of the Interna-
tional Labor Organization (ILO), so that no one is left be-
hind, in light of the social impact that the decarbonization
strategy entails, while ensuring respect for human rights
throughout the value chain.
78
Integrated Annual Report 2023
STRATEGIC PLAN
Response to the current climate
Short-term global uncertainties have forced power com-
panies to increase flexibility and improve visibility of re-
turns. In the medium and long term, grids will have to be
able to cope with increased electricity demand as elec-
trification expands, and the growing proportion of re-
newables in the energy mix (including through distributed
generation). Furthermore, the expected growth in renew-
ables capacity will require battery storage in order to bal-
ance supply and demand.
In this scenario, the Group plans to allocate its investments
efficiently. Regulated businesses will be at the center of
the Group’s strategy, seeking to improve quality and re-
silience and integrating new renewables capacity, with the
support of advantageous regulatory frameworks. Invest-
ment decisions in renewables will be more selective, aim-
ing for a positioning that maximizes returns and mitigates
risks, also leveraging Partnership business models. Finally,
the Group plans to optimize its customer portfolio and
end-to-end processes, increasing efficiency in customer
acquisition and management, improving customer loyalty
through bundled offers and promoting the electrification
of consumption. Generation and retail will be managed to-
gether in a flexible approach to the sourcing strategy, with
the aim of improving profitability.
The 2024-2026 Strategic Plan
The Group’s 2024-2026 Strategic Plan is founded on three
pillars:
• profitability, flexibility and resilience through high-
ly selective capital allocation, aimed at optimizing the
Group’s risk/return profile;
• efficiency and effectiveness as drivers of the Group’s
operations, based on process simplification, leaner or-
ganization with defined responsibilities and a focus on
core geographies, as well as the rationalization of costs
in order to maximize cash generation and offset infla-
tionary pressures and the higher cost of capital;
• financial and environmental sustainability to pursue
value creation in addressing the challenges of climate
change.
STRATEGIC PILLARS
CAPITAL
ALLOCATION
GROUP
TRANSACTIONS
SUSTAINABILITY
1.
PROFITABILITY,
FLEXIBILITY AND
RESILIENCE
2.
EFFICIENCY
AND
EFFECTIVENESS
3.
FINANCIAL AND
ENVIRONMENTAL
SUSTAINABILITY
Selective capital allocation to maximize the
risk/return profi le, while at the same time
improving the Group΄s fl exibility and resilience
Cost discipline, leaner organization and
processes, clearly defi ned responsibilities
with a focus on core geographical areas and
activities to maximize cash generation and
off set infl ationary pressures and the higher
cost of capital
Financial and environmental sustainability to
pursue value creation and address the
challenges of climate change
A business model
guided by
sustainability and
designed to seize
the opport unities
created by a
constantly evolving
context
Strategic Plan
79
Profitability, flexibility and resilience
Between 2024 and 2026, the Group has planned total
gross investments of about €35.8 billion. Given the current
scenario, to implement a business model with less capital
and risk intensity, the Group plans to:
• increase the focus on grids, in order to benefit from fa-
vorable regulatory environments and at the same time
gain access to European financing, which is expected
to contribute some €3.5 billion to the Group’s total
gross investments;
• create partnerships for renewables projects in order to
flexibly invest financial resources in a total amount of
around €6.1 billion.
As a result, investments are expected to require less cash
for the Group, with expected net investments of about
€26.2 billion.
CUMULATIVE GROSS CAPITAL
EXPENDITURE (€bn)
Grids
Customers
Renewables
BESS
Flexible GX
5%
4%
2024-2026
€35.8 bn(1)
30%
53%
Generation
8%
(1) Does not include “Other”.
GROSS CAPITAL EXPENDITURE:
OLD PLAN VS NEW PLAN (€bn)
2024-2026 PLAN:
FROM GROSS CAPEX TO NET CAPEX (€bn)
(1.6)
37.4
35.8
35.8
(9.6)
Enel share > 50%:
Lower risks and
optimized fi nancial eff ort
(6.1)
(3.5)
26.2
2023-2025
Old Plan
2024-2026
New Plan
2024-2026
Gross capex
Part nership(1)
Grants
2024-2026
Net capex
Net capex
(€bn)
34.6
€(8.4) bn
26.2
(1) €6.1 billion includes: ~€4 billion cash-in from capacity to be built during plan period and ~€2 billion from existing capacity.
The Group confirms that it intends to focus its invest-
ments in six core countries, above all where it can leverage
an integrated position: specifically Italy, Spain, Brazil, Chile,
Colombia and the United States.
Grids – Between 2024 and 2026 the Group has planned
gross investments of about €18.6 billion in Grids, of which
about €15.2 billion net of grants. The allocation of capi-
tal in grids is adapted in accordance with the planned re-
turns in each country, with a concentration of investment
in geographical areas characterized by a more balanced
and clearer regulatory framework, notably in Italy where
the Group plans to allocate about €12.2 billion in gross in-
vestments. Thanks to this capital allocation, ordinary EBIT-
DA connected with Grids is expected to reach about €8.4
billion in 2026.
80
Integrated Annual Report 2023
GROSS CAPITAL EXPENDITURE
Quality, Resilience & Digitalization
Grid operation
Connections
50%
2024-2026
€18.6 bn
MAIN DRIVERS
Regulatory advocacy
Leverage regulatory frameworks that
guarantee appropriate return on investment
Quality
Delivery high standards of service to
customers together with low levels of losses
with a view to enhancing profi tability
18%
32%
Optimize the asset base
Improve the grid port folio to maximize value
and growth of RAB
Capital expenditure net of grants ~€15.2 bn
Integrated Businesses – The Group aims to increase mar-
gins in the Integrated Businesses by reducing provisioning
costs.
In Renewables, the Group has planned gross investments
of around €12.1 billion between 2024 and 2026. Specifi-
cally, the Group plans to invest in onshore wind, solar and
battery storage. A key factor will be innovation, using re-
powering to increase the efficiency of plants and reduce
generation costs, as well as storage batteries to enhance
the flexibility of the electricity system and load manage-
ment.
GROSS CAPITAL EXPENDITURE
BESS
Onshore wind
Hydroelectric
Solar
Geothermal
Maintenance
13%
37%
12%
6%
2024-2026
€12.1 bn(1)
32%
Cash-in from part nerships ~€6 bn
(1)
Does not include €0.3 billion in equity injections.
MAIN DRIVERS
Reduction of LCOE
Continued optimization of unit capex and opex
Improve risk/return profi le
Investments selected using a risk/return matrix
diff erentiated by technology and geographical
area
Innovation
Focus on repowering and BESS to improve
system fl exibility and congestion management
Part nerships
Leverage the contribution of non-Group
part ners
Strategic Plan
81
Furthermore, regarding the decarbonization process, the
Plan envisages gradually eliminating investments in new
carbon-intensive assets until their complete elimination in
2025. In particular, the Group expects to invest less than
3% of gross 2024-2026 investment in thermal generation,
most of which will be dedicated to maintenance of existing
plants, while investment in the development of new plants
will be substantially limited to the conversion from coal to
CCGT of the Fusina power plant, which is expected to be
completed by 2024.
More than 90% of the Group’s total investment in 2024-
2026 is in line with the United Nations Sustainable De-
velopment Goals (SDGs) and directly work towards SDGs
7 (“Affordable and Clean Energy”), 9 (“Industry, Innova-
tion and Infrastructure”) and 11 (“Sustainable Cities and
Communities”), all of which help to achieve SDG 13 (“Cli-
mate Action”). The alignment of investments stated in the
Group’s Strategic Plan with the objectives of decarboniza-
tion and the reduction of greenhouse gases is based on a
specific approach by which investment in renewables and
retail power, by their nature, fall under SDG 7, investment
in distribution networks fall under SDG 9, and investments
by Enel X concern SDG 11. Of the above, more than 90%
thereby excludes investment in conventional power gen-
eration (including maintenance) and in retail gas.
Furthermore, we expect that more than 80% of all Group
investment will continue to be in line with the EU taxonomy
over the period covered by the Plan, given their substantial
contribution to mitigating climate change.
Between 2024 and 2026, this new approach is expected to
enable the Group to build approximately 13.4 GW of new
renewables capacity across all the geographical areas in
which it operates. In 2026, the Group’s renewables capac-
ity is expected to increase to approximately 73 GW, from
about 62 GW in 2023, with the share of zero-emission
generation reaching around 86%, compared with 75% in
2023 (including managed capacity).
In the Customer segment, the Group has planned gross
investments of about €3 billion between 2024 and 2026.
The main driver of the Group strategy in this segment will
be the strengthening of customer centricity thanks to a
single touchpoint for business-to-consumer (B2C) cus-
tomers and small and medium-sized enterprises (SMEs),
key accounts dedicated to the main business-to-business
(B2B) and business-to-government (B2G) customers, as
well as bundled offers.
Thanks to these initiatives, the ordinary EBITDA of the In-
tegrated Businesses is expected to reach around €15.5
billion in 2026, with renewables as the main growth factor
over the Plan period.
GROSS CAPEX
COMMERCIAL PROPOSITION
Italy
Latam
Iberia
Rest of the World
54%
Smart City Lighting
33%
Distributed Energy
Community
Demand
response
2024-2026
€3.0 bn(1)
10%
3%
Billing Integration
Services
Smart
Home
EV Charging
services
Multi-Commodity Bundle
(1) Does not include “Other”.
(2) Power.
Free-market
customers (mn)(2)
2024
18.6
2026
20.4
Stand-alone commodity-based port folio
MAIN DRIVERS
Geographical rebalancing:
focus on Italy, Iberia and
Latam
Customer centricity: single
touchpoint for B2C and
SMEs; Key Account Manager
for Top & Large commodities
and services
Bundled off ers and
leveraging cross sales
to enhance customer
experience
Prioritizing products that
can accelerate electrifi cation,
foster customer loyalty and
increase margins
Optimization of processes
to boost effi ciency in
customer acquisition and
management
82
Integrated Annual Report 2023
Efficiency and effectiveness
The Group’s strategic actions will be guided by financial
balance. Between 2024 and 2026, the Group expects to
increase its cash generation, with total cash flows funds
from operations (FFO) equal to about €43.8 billion, which
are expected to fully meet cash requirements for net in-
vestments and dividends.
Compared with the cost baseline for 2022, the Group ex-
pects to achieve an overall cost reduction of approximate-
ly €1.2 billion in 2026, of which about €1 billion in efficiency
gains achieved by reorganizing business processes, ratio-
nalizing organization, optimizing mix between insourcing
and outsourcing as well as adopting standards and us-
ing better technologies to be adapted depending on the
country involved. Further savings of about €0.2 billion are
expected in regulated businesses.
These initiatives are also supported by the divestment
plan, which has been partly redefined to focus on a portfo-
lio rotation guided by asset value. The implementation of
the divestment plan is expected to have a positive impact
on net financial debt estimated at about €11.5 billion be-
tween 2023 and 2024.
Financial and environmental sustainability
The generation of cash flow, rationalization of costs
and optimization of processes is expected to boost the
Group’s creditworthiness.
Over the next three years, the Group plans to reduce the
average cost of gross borrowing by 20 basis points, de-
spite the high interest rate environment, to about 3.8% in
2026, down from 4.0% at the end of 2023, mainly thanks
to centralized refinancing.
On the environmental sustainability front, the Group in-
tends to continue to reduce its direct and indirect green-
house gas emissions, in line with the Paris Agreement and
with the 1.5 °C scenario, as certified by the Science Based
Targets initiative (SBTi). Specifically, the Group confirms
its objective of closing all remaining coal plants by 2027,
subject to authorization from the competent authorities.
As regards the conversion of coal plants, the Group will
evaluate the best technologies available, based on the re-
quirements indicated by transmission grid operators. The
Group confirms its ambition to achieve zero emissions in
all scopes by 2040.
Financial targets
Group ordinary EBITDA is expected to increase from €22
billion in 2023 to between €23.6 billion and €24.3 billion in
2026. Group ordinary profit is expected to increase from
€6.5 billion in 2023 to between €7.1 billion and €7.3 billion
in 2026.
The Group confirms its simple and attractive dividend poli-
cy with a minimum fixed DPS of €0.43 for the period 2024-
2026, with a potential increase up to a payout of 70% of
ordinary profit if cash neutrality is achieved. Cash neutral-
ity is achieved if FFO fully finance the Group’s net invest-
ments and dividends beyond the minimum fixed DPS.
Financial targets
Profit growth
Ordinary EBITDA (€ billions)
Ordinary profit (€ billions)
Value creation
DPS (€/share)
2023
22.0
6.5
2024
22.1-22.8
6.6-6.8
2026
23.6-24.3
7.1-7.3
0.43(1)
0.43(1)
0.43
Increase in DPS up to a payout of 70%
ordinary profit if cash neutrality is achieved(2)
(1) Minimum DPS.
(2) Cash neutrality is achieved if funds from operations (FFO) fully cover Group net investment plus dividends in excess of the fixed minimum dividend.
Strategic Plan
83
Climate change strategy
Overall framework and policies
Climate change is the world’s primary challenge of our
century. In a climate such as this, and as a global player
in the energy market, Enel is on the front lines playing an
active role in guiding the global energy transition towards
zero emissions as a mitigating lever and working to de-
termine the best ways to adapt to the changes that are
inevitable to varying degrees of frequency and intensity.
Therefore, the work Enel is doing to combat climate
change represents one of the pillars of the Group’s short-
and long-term strategy.
Mitigation efforts include all those initiatives aimed at re-
ducing the impact that the activities of the Group and
our stakeholders have on climate change, and first and
foremost those that aim to reduce the emission of green-
house gases.
Adaptations, on the other hand, include all actions that
Enel implements to make assets more resilient, to increase
our ability to react to extreme weather events, and to con-
Our zero-emissions ambition
Being among the first signatories of the “Business Ambi-
tion for 1.5 °C” campaign promoted by the United Nations
and other organizations, the Enel Group has publicly de-
clared its commitment to developing a business model in
line with the goals of the Paris Agreement (COP 21) to limit
the average global temperature increase to 1.5 °C.
Enel’s commitment to combating climate change reached
another historical milestone in 2022, with the Group defin-
ing a decarbonization roadmap covering both direct and
indirect emissions throughout the Group’s value chain.
This roadmap includes four targets certified by the Sci-
ence Based Targets initiative (SBTi) to be in line with limit-
ing global warming to 1.5 °C.
Enel’s new certified targets come on the back of our am-
bition declared in 2021, when we moved up our commit-
ment to achieving zero emissions by 10 years, from 2050
to 2040.
Enel’s ambition goes beyond the SBTi certified targets
and aims to pave the way to becoming a zero-emission
organization by 2040. Our certified roadmap currently
calls for reducing all direct and indirect greenhouse-gas
(GHG) emissions by about 99% from 2017 levels by 2040
throughout our value chain, which is well above the over-
all threshold set by international standards (of 90%). The
ceive business models and other strategic options target-
ing various needs in this constantly changing climate.
In each of these two areas, the challenges present oppor-
tunities that we will seize through Group strategy. Here at
Enel, adapting to climate change also means exploring
new business opportunities to come out of the chang-
ing landscape, developing new technologies, and creat-
ing value from the capabilities acquired. The mitigation
of climate change also involves investing in research into
innovative technologies that will enable an economy that
is green by design or that, for example, improve perfor-
mance and circularity.
The experience we gain and our study of possible climate
scenarios that have been seen above also play a crucial
role in guiding both areas of action. As we will discuss in
the section related to climate change risks and opportu-
nities, the Group has also established internal policies for
the assessment and management of these challenges.
Group also aims to reduce all emissions by 100% with a
view to overcoming, over the short to medium term, all ex-
ogenous factors, such as the development of new techno-
logical solutions for the supply chain over a wide scale or
the implementation of certain market-based and political
strategies. Enel actively collaborates with vendors, cus-
tomers and policymakers to promote solutions and accel-
erate necessary actions.
Enel’s decarbonization roadmap is centered around pro-
moting electrification solutions, accompanied by com-
pleting the full phase-out of fossil fuels and accelerating
the development of renewables, as well as going digital
and upgrading grids. Aware of the social impact that the
decarbonization strategy entails, Enel supports the prin-
ciples of a just transition, as defined in the Just Transition
Guidelines of the International Labor Organization (ILO),
which is expressed in terms of actions involving retraining,
professional updating and self-learning for direct and in-
direct workers, providing support with a view to business
diversification and greater resilience for the supply chain,
job opportunities for communities in our area of influence
and facilitating access to products and services for cus-
tomers.
84
Integrated Annual Report 2023
The decarbonization roadmap includes the following busi-
ness milestones.
GHG EMISSIONS REDUCTION TARGETS CERTIFIED
BY THE SBTi IN LINE WITH THE 1.5 ºC SCENARIO
01
02
03
04
POWER GENERATION
(SCOPE 1)
INTEGRATED POWER
(SCOPES 1+3)
GAS RETAIL
(SCOPE 3)
ADDITIONAL EMISSIONS
(SCOPES 1+2+3)
2026
-66% vs 2017
-59% vs 2017
-21% vs 2017
125 gCO2eq/kWh
135 gCO2eq/kWh
20.0 MtCO2eq
2030
-80% vs 2017
-78% vs 2017
-55% vs 2017
-55% vs 2017
72 gCO2eq/kWh
73 gCO2eq/kWh
11.4 MtCO2eq
10.4 MtCO2eq
2040
ZERO EMISSIONS
without carbon removal
<2.5 MtCO2eq
Medium- and long-term targets cert ifi ed by the SBTi in December 2022 in
accordance with the Net Zero Standard and aligned with the 1.5 ºC scenario
• By 2026, Enel will bring renewables to around 78% of
total capacity, including batteries and all managed ca-
pacity (Ownership, Partnership, Stewardship). In order
to accelerate the development of renewable energy,
for the period 2024-2026 the Group will invest €12.1
billion, installing 13.4 GW of new installed renewables
capacity (leveraging the support of third parties) and
reaching 73 GW of installed renewables capacity by
2026, with zero-emissions generation accounting
for about 86% of the total (including managed gen-
eration). In addition, progress in grid digitalization will
increase the share of digital customers to 71%.
• By 2027, Enel expects to complete the full phase-out
of all coal-fired plants, converting the sites to other
uses, taking account of the needs of the country sys-
tem.
• By 2030, continuing the investment trend already
undertaken in recent years in order to continue ac-
celerating the energy transition, Enel will achieve a
renewables capacity of about 85% of the total (in-
cluding managed generation), bringing the share of
zero-emissions generation to about 90% (including
managed generation), with 100% of grid customers
being fully digital.
• By 2040, generation will be 100% renewable, and the
Group will have exited both gas-fueled generation and
the retail sale of gas, with 100% of the electricity sold
coming from renewable sources.
Strategic Plan
85
OUR ZERO-EMISSIONS
AMBITION
Enel is committ ed to achieving zero emissions by 2040
and to developing a business model that is in line
with the objectives of the Paris Agreement (COP 21)
to limit the average increase in global temperatures
to 1.5 ºC. For this reason, the Group has developed a
decarbonatization roadmap that covers both direct
and indirect emissions throughout the value chain. The
roadmap includes four targets cert ifi ed by the Science
Based Targets initiative (SBTi) in December 2022 to be
in line with the Net Zero Standard.
GHG TARGET
Intensity of Scope 1 GHG emissions related to power generation
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Electricity generation
Direct
• Customers and power consumers
• Society and environment
95% of Scope 1 GHG emissions(2)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
125 gCO2eq/kWh
72 gCO2eq/kWh
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-66%
-22%
-80%
-55%
0 gCO2eq/kWh
Zero emissions
-100%
-100%
Climate scenario
1.5 °C(3)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
• Continue the process of decarbonizing
• Exit from the thermal electricity
generation business, achieving a 100%
renewable energy mix.
• No use of carbon-removal technologies
to achieve the target.
electricity generation, with Group
investments raising the proport ion of
renewables plants in the asset port folio
to about 85% in 2030, with zero-
emissions generation amounting to 90%
of the total, including consolidated and
managed generation.
• Exit from coal-fi red generation, which is
expected to take place by 2027 globally.
• No use of carbon-removal technologies
to achieve the target.
Primary drivers and
actions
• Gradual phase out of coal-fi red capacity
in 2024-2026, with planned closure of
the Federico II and Torrevaldaliga Nord
plants in Italy (with a total capacity of
about 3.6 GW).
• Invest €12.1 billion to accelerate the
development of renewable energy by
installing 13.4 GW of new renewables
capacity (about 11.3 GW of which at
the consolidated level) in 2024-2026,
reaching 73 GW of renewables capacity
(including BESS) by 2026.
• Continue the process of decarbonizing
electricity generation, with the
proport ion of renewables plants in the
Enel asset port folio reaching 78% in
2026, with zero-emissions generation
amounting to 86% of the total, including
consolidated and managed generation.
• No use of carbon-removal technologies
to achieve the target.
Results and
main actions in
2023
KPI achievement in 2023: 160 gCO2eq/kWh
• About €5.9 billion invested in renewables in 2023.
• New consolidated renewables capacity installed equal to 4 GW in 2023, bringing total consolidated capacity to 55.5 GW in
2023.
• Increase in consolidated renewables generation equal to 13% on 2022, representing 61% of total consolidated generation in
2023.
• Reduction of thermal capacity by about 5.1 GW on 2022, including the closure of two coal-fi red plants (for a total of about 2
GW) and the sale of gas plants in Argentina (for a total of about 3 GW) and Colombia (for a total of about 0.2 GW).
• Reduction of thermal generation by 38% on 2022 (specifi cally, with a 45% reduction in coal-fi red generation), representing 27%
of total generation in 2023.
86
Integrated Annual Report 2023
GHG TARGET
Intensity of Scope 1 and Scope 3 GHG emissions related to Integrated Power
• Downstream in value chain (purchase of electricity from other generators for sale to end users)
Sale of electricity
• Direct (electricity generation)
• Customers and power consumers
• Electricity generators (peers)
• Society and environment
• 95% of Scope 1 GHG emissions
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
• 42% of Scope 3 GHG emissions (corresponding to 78% of Scope 3 GHG emissions – category 3)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
135 gCO2eq/kWh
73 gCO2eq/kWh
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (reporting
year)
-59%
-20%
-78%
-57%
0 gCO2eq/kWh
Zero emissions
-100%
-100%
Climate scenario
1.5 °C(3)
1.5 °C (SBTi certified)
1.5 °C (SBTi certified)
Primary drivers and
actions
• Increase the percentage of renewable
• Continue the strategy of balancing
• By 2040, achieve 100% of electricity
energy sold to customers, while
supply and demand and increase the
sales covered by renewables.
increasing the Group’s renewables
share of electricity sold at a fixed price
production and optimizing customer
covered by carbon-free generation.
portfolio, continuing supply and
demand balancing strategy.
• In Europe, increase the share of
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
fixed-price energy sales to end users
to about 90% of the total in 2030.
• No use of carbon-removal
technologies to achieve the target.
• No use of carbon-removal
technologies to achieve the target.
covered by zero-emissions sources
from about 65% in 2023 to more than
80% in 2026.
• In Latin America, maintain 100%
zero-emissions sales to end users
(including through PPAs).
• In North America, maintain 100% zero-
emissions sales to end users.
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
from 75% in 2023 (including managed
capacity) to 86% of total in 2026,
including consolidated and managed
capacity.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
• 13% increase in Group consolidated renewables generation in 2023 on 2022.
KPI achievement in 2023: 168 gCO2eq/kWh
2023
• 7% reduction in 2023 compared with 2022 in the gap between sale of electricity to end users and own generation in the
countries in which the Group has an integrated position.
GHG TARGET
Intensity of Scope 1 and Scope 3 GHG emissions related to Integrated Power
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Sale of electricity
• Direct (electricity generation)
• Upstream in value chain (purchase of electricity from other generators for sale to end users)
• Customers and power consumers
• Electricity generators (peers)
• Society and environment
• 95% of Scope 1 GHG emissions
• 42% of Scope 3 GHG emissions (corresponding to 78% of Scope 3 GHG emissions – category 3)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
135 gCO2eq/kWh
73 gCO2eq/kWh
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-59%
-20%
-78%
-57%
0 gCO2eq/kWh
Zero emissions
-100%
-100%
Climate scenario
1.5 °C(3)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
Primary drivers and
actions
• Increase the percentage of renewable
• Continue the strategy of balancing
• By 2040, achieve 100% of electricity
supply and demand and increase the
share of electricity sold at a fi xed price
covered by carbon-free generation.
sales covered by renewables.
• No use of carbon-removal
technologies to achieve the target.
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
to about 90% of the total in 2030.
• No use of carbon-removal
technologies to achieve the target.
energy sold to customers, while
increasing the Group’s renewables
production and optimizing customer
port folio, continuing supply and
demand balancing strategy.
• In Europe, increase the share of
fi xed-price energy sales to end users
covered by zero-emissions sources
from about 65% in 2023 to more than
80% in 2026.
• In Latin America, maintain 100%
zero-emissions sales to end users
(including through PPAs).
• In Nort h America, maintain 100% zero-
emissions sales to end users.
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
from 75% in 2023 (including managed
capacity) to 86% of total in 2026,
including consolidated and managed
capacity.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
2023
• 13% increase in Group consolidated renewables generation in 2023 on 2022.
• 7% reduction in 2023 compared with 2022 in the gap between sale of electricity to end users and own generation in the
countries in which the Group has an integrated position.
KPI achievement in 2023: 168 gCO2eq/kWh
Strategic Plan
87
GHG TARGET
Scope 3 GHG emissions related to the sale of natural gas on end-user market
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Sale of gas to end users
• Downstream in value chain
• Gas customers
• Society and environment
• 30% of Scope 3 GHG emissions (corresponding to 100% of Scope 3 GHG emissions – category 11)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
20.0 MtCO2eq
11.4 MtCO2eq
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-21%
-(4)
-55%
-32%
0 MtCO2eq
Zero emissions
-100%
-100%
Climate scenario
n.a.(5)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
• By 2040, achieve 100% of energy sales
covered by renewables.
• Exit retail gas sales business by 2040.
• No use of carbon-removal
technologies to achieve the target.
Primary drivers and
actions
• Encourage customers (especially
residential customers) to switch
from gas to electricity by promoting
effi cient electricity technologies
(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
from 2.65 MWh in 2023 to about 2.9
MWh in 2026, thereby increasing the
electrifi cation rate of customers.
• Allocate 32% of investment in grids
in 2024-2026 to connections, part ly
with a view to enabling the expansion
of distributed generation, thereby
promoting the electrifi cation of
end users’ energy consumption.
The number of connections to
distributed generation is forecast
to double in the period, reaching 4
million in 2026.
• Reduce the volumes of gas sold to
customers to around 8.4 billion cubic
meters in 2026.
• No use of carbon-removal
technologies to achieve the target.
• Encourage customers (especially
residential customers) to switch
from gas to electricity by promoting
effi cient electricity technologies
(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
to about 3.5 MWh in 2030, thereby
increasing the electrifi cation rate of
customers.
• Continue to invest in distribution
grids, support ing the growth of
distributed generation, thereby
promoting the electrifi cation of end
users’ energy consumption, reaching
6 million connections to distributed
generation in 2030.
• Optimize the customer gas port folio
(industrial customers in part icular),
continuing to reduce the volume of
gas sold to about 5.3 billion cubic
meters in 2030.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
2023
• 6.2 million gas customers in 2023, down 6% on 2022.
• Gas sales in 2023 equal to 8.3 billion cubic meters, down 19% on 2022.
• 3.6 million new connections in 2023.
KPI achievement in 2023: 16.8 MtCO2eq
88
Integrated Annual Report 2023
GHG TARGET
Additional emissions Scopes 1-2-3
Primary business
activity
• Electricity distribution (Scopes 1 and 2)
• Management of vehicle fl eet, buildings and other assets (Scopes 1 and 2)
• Management of supply chain (Scope 3)
• Purchase of fuels (Scope 3)
Type of activity in
value chain
• Direct (electricity distribution and management of vehicle fl eet, buildings and other Group assets)
• Upstream in value chain (supply chain for products and services and fuel business)
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
• Customers and power consumers
• Electricity generators (peers)
• Suppliers of goods and services
• Oil&gas suppliers
• Society and environment
• 0.5% of Scope 1 GHG emissions
• 100% of Scope 2 GHG emissions
• Target 2030(6): 15% of Scope 3 GHG emissions (corresponding to 17% of Scope 3 emissions - category 1 and 22%
of Scope 3 emissions - category 3)
• Target 2040(6): 18% of Scope 3 GHG emissions (corresponding to 35% of Scope 3 emissions - category 1 and 22%
of Scope 3 emissions - category 3)
Time frame
Medium term (2030)
GHG target
10.4 MtCO2eq
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-55%
-12%
Long term (2040)
<2.5 MtCO2eq
Net zero emissions
-90%
-83%
Climate scenario
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
Primary drivers and
actions
• Invest a total of €18.6 billion in grids over the 2024-2026
period, of which 50% to improve grid resilience, quality
and digitalization, thereby helping to reduce grid losses
and related greenhouse gas emissions. Replace existing
distribution grid infrastructure components with SF6-free
solutions.
• Implement a circular procurement approach; increase the
number of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with our suppliers. Strengthen
dialogue with raw material producers and other utilities
to defi ne shared and eff ective long-term decarbonization
strategies.
• Phase out coal-fi red generation by 2027, mitigating all GHG
emissions related to coal supply.
• No use of carbon-removal technologies to achieve the
target.
• Promote grid digitalization and replace existing distribution
grid infrastructure components with SF6-free solutions.
• Implement a circular procurement approach; increase the
number of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with our suppliers. Strengthen
dialogue with raw material producers and other utilities
to defi ne shared and eff ective long-term decarbonization
strategies.
• Eliminate emissions connected with gas extraction activities,
as the Group has fully exited gas-fi red generation and sale of
gas to end users.
• Neutralize the residual amount through carbon-removal
actions (purchase of cert ifi cates linked to nature-based or
technology-based projects in voluntary carbon markets,
in accordance with international standards) if complete
mitigation of emissions is not feasible due to exogenous
factors (technological, market or regulatory).
KPI achievement in 2023: 11.9 MtCO2eq (for 2017-2030 target scope) and 13.5 MtCO2eq
(for 2017-2040 target scope)(6)
Results and
main actions in
2023
• €5.4 billion invested in the grid in 2023.
• 43% reduction in coal burned in thermal generation plants.
• 41% reduction in volume of gas burned in thermal generation plants compared with 2022 (due also to the sale of gas plants
in Russia and Argentina), and 19% reduction in volume of gas sold to end users compared with 2022.
• 8% reduction in electricity consumption in Group generation plants and buildings.
• 24% reduction in emissions intensity (tCO2eq/€mn) in supply chain in 2023 compared with 2022, reaching 684 tCO2eq/€mn.
Strategic Plan
89
TOTAL COVERAGE OF SCOPES 1-2-3
EMISSIONS IN 2023
• 95.5% of Scope 1 GHG emissions (2026, 2030 and 2040 targets)
• 100% of Scope 2 GHG emissions (2030 and 2040 targets)
• 87% (2017-2030 target) and 90% (2017-2040 target) of Scope 3 GHG emissions(6)
(1) Percentages based on total GHG emissions in 2023.
(2) Excludes marginal Scope 1 GHG emissions not directly related to the combustion of fossil fuels in electricity generation at thermal plants. These emissions
also include the use of ancillary services in distribution operations. In part icular, in 2023 there was an extraordinarily high use of these services in Brazil
to deal with the meteorological emergency that occurred in São Paulo in November 2023, which caused the interruption of grid operations. In any event,
95.8% of Scope 1 and Scope 2 GHG emissions are covered by all of the above targets, greater than the 95% threshold required under the Science Based
Targets initiative and the GHG Protocol.
(3) The target is in line with the path to 1.5 °C set by the SBTi for the electrical services industry (Sectoral Decarbonization Approach, or SDA), although it could
(4)
not be offi cially validated because the SBTi does not cert ify targets over a time frame of less than fi ve years from the presentation date.
In 2023, gas sales decreased considerably compared with previous years. Furt hermore, a methodological change in the use of conversion factors has been
implemented. These two factors produced a value below the target expected for 2026.
(5) The target could not be offi cially validated because the SBTi does not cert ify targets over a time frame of less than fi ve years from the presentation date. In
addition, the SBTi has not defi ned a sectoral decarbonization approach for these types of emissions, so the ambition level cannot be verifi ed.
(6) Two diff erent percentage limits have been set for the target for Scope 3 GHG emissions by the supply chain, as allowed under the SBTi approach, which
required coverage of at least 67% of Scope 3 emissions for the 2030 target, and at least 90% for the 2040 target.
Adaptation: resiliency and response to climate change
and new options for the Group (Climate Adaptation Model)
The Group implements solutions to adapt to weather and
climate events in order to effectively manage both chronic
and acute situations for each business line and activity.
These adaptation solutions may concern both short-term
actions and long-term decisions, such as planning for in-
vestments in response to weather events. Adaptation ef-
forts also include procedures, policies and best practices
for resiliency, response and innovation.
For new investment, we can also take action right from
the design and construction phases to reduce the impact
of climate risks by design (e.g., by assessing risks and vul-
nerabilities during the design stage) and to take account
of any chronic effects (e.g., including climate scenarios in
long-term estimates for renewable resources).
Once the weather and climate events have been identified,
actions to maximize our capacity for adaptation may be
categorized as follows.
• Response management – Procedures to prepare the
response to extreme events (e.g., acquiring short-term
weather forecasts and training) and procedures to re-
store normal operations as quickly as possible (e.g.,
defining operating and organizational procedures to
implement in response to critical events).
• Resiliency measures – Actions aimed at increasing as-
set resiliency, such as assessing the entity of potential
acute and chronic risks in order to define both design
requirements and actions to take with regard to exist-
ing assets.
• New business options – Conception of new businesses
or products that are adapted to future changes in cli-
mate, so as to facilitate adaptation for both the Group
and our communities and stakeholders.
In order to assess the impact of climate change for the
purpose of making business and strategy decisions, and
thereby aimed at implementing adaptation measures in
line with the above, the Group is investing in the develop-
ment of quantitative models that also make use of climate
scenario data in order to assess the impact of climate
change on specific assets or areas of production.
90
Integrated Annual Report 2023
Assessment of the risks and opportunities connected
with the Strategic Plan
The Group Strategic Plan is accompanied 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 improve the Group’s risk/return profile.
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 or not occur to the extent assumed,
as they depend on variables that cannot 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 strategy are identified.
Based on the nature of the risk and opportunity drivers,
the analytical approach that best represents their volatility
is selected. In particular, we perform a deterministic analy-
sis based on what-ifs of the possible evolution of the main
market and business variables with respect to the main
risk factors for the execution of the Business Plan and a
probabilistic analysis to assess the variability of renewable
resources.
Focusing on the scenario risk analysis for the Strategic
Plan, exchange rates, electricity demand and the volatility
of energy and commodity prices, together with possible
reviews of regulatory frameworks and possible changes in
commercial and sourcing strategies, 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. 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 geo-
graphical 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 chronic effects is of little significance over the
course of the three years of the Plan.
Strategic Plan
91
RISK
MANAGEMENT
The Enel Group risk governance model
In performing its industrial and commercial activities, the
Enel Group is exposed to risks that could impact its per-
formance and financial position if not effectively moni-
tored, managed and mitigated.
In this regard, in line with the architecture of Enel’s internal
control and risk management system (ICRMS), the Group
has also adopted a risk governance model based on a
number of “pillars” described below, as well as a uniform
taxonomy of risks (the “risk catalogue”) that facilitates
their management and organic representation.
The “pillars” of risk governance
Enel has adopted a reference framework for risk governance
that is implemented in the real world through the establish-
ment of specific management, monitoring, control and re-
porting controls for each of the risk categories identified.
The Group’s risk governance model is in line with the best
national and international risk management practices and is
based on the following pillars:
GROUP
RISK
COMMITTEE
RISK
APPETITE
FRAMEWORK
REPORTING
1.
1.
2.
3.
4.
5.
6.
LINES
OF DEFENSE
LOCAL
RISK
COMMITTEES
POLICY
• Lines of defense. The Group’s arrangements are struc-
tured along three lines of defense for risk management,
monitoring and control activities, in compliance with the
principle of segregating roles in the main areas in re-
spect of significant risks.
• Group Risk Committee. This body, set up at manage-
ment level and chaired by the Chief Executive Officer, is
responsible for strategic guidance and risk management
supervision through:
– analysis of the main exposures and the main risk issues
faced by the Group;
– adoption of specific risk policies applicable to Group
companies, in order to identify roles and responsi-
bilities in risk management, monitoring and control
processes, in compliance with the principle of organi-
zational separation between the units responsible for
operations and those responsible for monitoring and
controlling risks;
– approval of specific operating limits, authorizing,
where necessary and appropriate, exceptions to these
limits for specific circumstances or needs;
– definition of risk response strategies.
The Group Risk Committee generally meets four times a
year and can also be convened, where deemed neces-
sary, by the Chief Executive Officer and the head of the
“Risk Control” unit, which forms part of the “Administra-
tion, Finance and Control” Function.
• Integrated and widespread system of local risk com-
mittees. The presence of specific local risk committees,
organized in accordance with the main global business
lines and geographical areas of Group operations and
chaired by their respective top managers, provides ad-
equate oversight of the most characteristic risks at the
local level. The coordination of these committees with
the Group Risk Committee facilitates appropriate agree-
ment with Group top management of the information
92
Integrated Annual Report 2023
and mitigation strategies for the most significant expo-
sures, as well as local implementation of the guidelines
and strategies defined at Group level.
• Risk Appetite Framework (RAF). The Risk Appetite
Framework constitutes the reference framework for de-
termining risk appetite and is an integrated and formal-
ized system of elements that enable the definition and
application of a single approach to the management,
measurement and control of each risk. The RAF is sum-
marized in the Risk Appetite Statement, a document
that summarily describes the risk strategies identified
and the indicators and/or limits applicable to each risk.
• Risk policies. The allocation of responsibilities, coordi-
nation mechanisms and the main control activities are
represented in specific policies and organizational doc-
uments defined in accordance with specific approval
procedures involving the corporate structures directly
involved.
• Reporting. Specific and regular information flows on
risk exposures and metrics, broken down at Group level
and by individual global business line or geographical
area, allow Enel’s top management and corporate bod-
ies to have an integrated view of the Group’s main risk
exposures, both current and prospective.
• Risk Landscape Enel Group©. Acting on the basis of its
risk governance arrangements and on the international
risk management standard ISO 31000:2018, the Group
constantly monitors risks using a process supported by
a data visualization tool (e-Risk Landscape©). This sys-
tem collects and organizes information coming from
the different geographical areas and business lines of
the Group, categorizing them in accordance with the
definition in the Group’s risk catalogue. The monitoring
and control process involves the assignment of met-
rics based on the risk events’ probability of occurrence
(likelihood) and the scale of potential economic-finan-
cial impact, providing the Group’s top management
with a dynamically updated view of the Group’s risk
profile and the associated management and mitigation
actions. These dimensions, modulated through repre-
sentative grids, provide an indication of the level of in-
dividual risks.
At December 31, 2023, the Enel Group monitored a set of
about 300 risks, 11 of which were identified as Top Risks
(with an above average likelihood and significant potential
financial impacts), mainly identified as regulatory and le-
gal/tax risks and/or uncertainties.
The Group’s risk governance model is in line with the best
national and international risk management practices and is
based on the following pillars:
GROUP
RISK
COMMITTEE
RISK
APPETITE
FRAMEWORK
REPORTING
Macro-category
Compliance
Digital technology
Financial
Governance and culture
Operational
Strategic
1.
1.
2.
3.
4.
5.
6.
LINES
OF DEFENSE
LOCAL
RISK
COMMITTEES
POLICY
T
C
A
P
M
I
4
2
0
Area Top Risks
1
2
3
4
5
PROBABILITY
The Enel Group Risk Landscape© enables the selection and visualization of medium-to-high risks (i.e. excluding highly unlikely and/or low impact events).
It is also possible to make a multidirectional selection:
• by category;
• by country/legal entity;
• by business line.
Risk management
93
With regard to the Top Risks identified and examined
for the Plan period, we find the greater concentration of
strategic risks, in particular legislative-regulatory risks (5)
in Italy (3) and Spain (2), deriving from exposures to rate
revisions, the renewal of concessions and recognition in
profitability parameters. As regards the section linked to
compliance risks (6), we find a concentration mainly linked
to tax risks in Brazil (4) and Italy (1) and legal risks in the
United States (1).
5
4.32
4
3
2.5
T
C
A
P
M
I
Macro-category
Compliance
Strategic
3.0
3.5
4.0
4.5
5.0
PROBABILITY
The following graphic offers an example of the variability
of the main risk clusters in terms of both probability and
potential impact in the Top Risk categories. These ranges
of variation are representative of the timeline with which
the individual risk driver is examined (for example, for a
possible evolution of the regulatory framework and ongo-
ing mitigation actions) and the heterogeneity of the type
of risks belonging to the same cluster.
5.0
4.5
3.5
2.5
T
C
A
P
M
I
Compliance
Strategic
PROBABILITY
3.5
4.5
5.0
94
Integrated Annual Report 2023
The Group risk catalogue
Enel has adopted a risk catalogue that represents a point
of reference at the Group level and for all corporate units
involved in risk management and monitoring processes.
The adoption of a common language facilitates the map-
ping and comprehensive representation of risks within the
Group, thus facilitating the identification of the main types
of risk that impact Group processes and the roles of the
organizational units involved in their management.
The risk catalogue groups the types of risk into macro-cat-
egories, which include, as shown below, strategic, financial
and operational risks, (non)-compliance risks, risks related
to governance and culture as well as digital technology.
RISKS
STRATEGIC GOVERNANCE
AND CULTURE
DIGITAL
TECHNOLOGY
FINANCIAL OPERATIONAL
COMPLIANCE
The following table shows the list of risks currently identi-
fied and classified within the aforementioned macro-cat-
egories.
CATEGORY
RISK
DEFINITION
Climate changes
Risk of ineffective identification, assessment and management of risks related
to climate changes – caused by acute and chronic events (physical risks) and by
effects of regulatory, technology and market trends arising from the transition
to a lower-carbon economy (transition risks) – through strategic and operating
initiatives of adaptation and mitigation of climate risks.
Competitive landscape
Risk of ineffective identification, assessment and monitoring of evolutionary
market trends that may impact Group competitive positioning, growth and
profitability.
Innovation
Risk of ineffective development, delivery and diffusion of innovative solutions
caused by technology scouting inadequacy and wrong or incomplete analysis
over uncertainty, complexity, sustainability, feasibility degree, market expectations,
internal skills or financial commitment of innovative projects.
STRATEGIC
Legislative and regulatory
development
Risk of adverse evolution of legislative or regulatory landscape, and/or
ineffective identification, assessment, management and monitoring of
legislative/regulatory evolutions, communication of new compliance duties,
execution of advocacy activities and internal gap analysis.
Lack of a systematic assessment process on regulatory exposures coming
from new strategic and business initiatives.
Macroeconomic and
geopolitical trends
Risk of ineffective identification, assessment and monitoring of global
economic, financial, political and social trends and monetary, fiscal and trade
policies evolutions.
Strategic planning and
capital allocation
Risk of ineffective strategic planning and capital allocation processes, caused
by unreliable scenario assumptions and inability to capture emerging trends
or to timely address relevant changes, that may adversely influence decision-
making process.
Risk management
95
CATEGORY
RISK
DEFINITION
GOVERNANCE
AND CULTURE
Corporate culture and ethics
Risk of (i) inadequate integration, within business processes and activities, of the
ethical principles defined by the Group, (ii) inability to put in place policies and
processes to ensure the respect of diversity and equal opportunity principles and
(iii) unsanctioned behaviors of employees and management, in breach with ethical
values of the Group.
Corporate governance
Risk of ineffective corporate governance frameworks/rules and/or lack of
integrity and transparency within decision-making processes.
Stakeholder engagement
Cyber security
Digitalization
Risk to ineffectively engage key stakeholders on Enel’s strategic positioning on
sustainability and financial goals due to a lack of understanding, anticipating
or orienting their expectations, which might cause an incomplete integration
of such expectations into Group’s business strategy and sustainability
planning processes, with a potential negative impact on its reputation and
competitiveness.
Risk of cyber-attacks and sensitive or massive corporate and customers data
stealing, ascribable to a lack of security of networks, operating systems and
databases.
Risk of managing ineffective business processes and supporting higher
operating costs due to a lack of digitalization in terms of workflows coverage,
systems integration and adoption of new technologies.
DIGITAL
TECHNOLOGY
IT effectiveness
Risk of ineffective support of IT systems to business processes and operating
activities.
Service continuity
Risk of exposure of IT/OT systems to service interruptions and data losses.
Capital structure adequacy
and funding access
Risk that company and/or Group debt/equity ratio or the mix between long-
and short-term debt may not be adequate to (i) support financial flexibility, (ii)
enable free access to a wide range of funding sources and (iii) achieve cost of
debt targets.
Commodity
Risk of (i) adverse commodity market trends and/or prices volatility
movements (price risk) and/or (ii) lack of demand or availability of
commodities, natural resources and raw materials (volume risk).
Credit and counterparty
Risk of (i) counterparty’s inability to meet payment or delivery contractual
obligations, (ii) credit deterioration or default of a counterparty, (iii) significant
exposure to a single counterparty (single name concentration) or (iv) to
counterparties operating in the same sector or belonging to the same
geographical area (sectorial/geographical concentration).
FINANCIAL
Foreign exchange rate
Interest rate
Liquidity
Risk of adverse variations in exchange rates, negatively affecting: (i) costs and
revenue denominated in foreign currencies with respect to the time at which
price conditions were defined or the investment decision was made (economic
risk); (ii) revaluations or fair value adjustments of exchange rate-sensitive financial
assets and liabilities (transaction risk); (iii) the consolidation of subsidiaries having
different accounting currencies (translation risk).
Risk of adverse fluctuations in interest rates impacting on net financial
expense as well as on fair value adjustments of sensitive financial assets and
liabilities.
Risk of incurring into difficulties to meet short-term financial needs as a result
of inability or higher costs incurred in (i) raising short-term funds (funding
liquidity risk) or (ii) liquidating assets on financial markets (asset liquidity risk).
96
Integrated Annual Report 2023
CATEGORY
RISK
DEFINITION
Asset protection
Risk of financial or reputational losses due to unauthorized access, theft,
misappropriation or mismanagement of equipment, plants, strategic information
or other physical or intangible assets. Risk of financial or reputational losses due
to ineffective safeguarding activity (i.e. insurance and legal activities) of Group
financial assets.
Business
interruption
Risk of partial or total interruption of business operations arising from
technical failures, assets and plants malfunctions, human errors, sabotages,
raw materials unavailability or adverse weather events.
Customer
needs and satisfaction
Risk of failure of Group’s products and services in achieving customers’
expectations and needs in terms of quality, accessibility, sustainability and
innovation.
Environment
Health and safety
Risk that inappropriate working operations or machineries may adversely
impact on the environment quality and ecosystems involved.
Risk of a breach in complying with international, country or local
environmental laws and regulations.
Risk that inappropriate working environments, structures, machineries and
business operations may negatively impact on health & safety conditions of
employees and other stakeholders involved.
Risk of a breach in complying with international, country or local laws and
regulations on health and safety.
OPERATIONAL
Intellectual property
Risk of Group’s intellectual property infringements or frauds.
People and
organization
Process efficiency
Risk of inadequacy of Group’s organizational structures or lack of internal skills
caused by the absence or inadequacy of training programs, ineffectiveness of
incentive schemes, inadequate turnover planning process or inability to define
effective employees recruiting processes and retention policies.
Risk of incurring higher operating costs or delays as well as reduced revenue
streams due to an inadequate management of operating processes and
activities, a lack of data quality, incomplete or ineffective monitoring over internal
performances and internal reporting.
Procurement, logistics and
supply chain
Risk of ineffective procurement or contract management activities, due to
inadequate requirements definition or supplier qualification process, a frequent
recourse to direct awarding, scouting activities shortcomings, poor monitoring
over the fulfillment of contractual duties, non-application of penalties.
Service quality management
Risk of third-party/internal service providers inability to meet the agreed
required levels of service.
Risk management
97
CATEGORY
RISK
DEFINITION
Accounting compliance
Risk of a breach of international and national accounting laws and regulations
or incorrect application and/or interpretation of international accounting
standards adopted by the Group (IFRS-EU) and national accounting standards
(local GAAP).
Antitrust compliance and
consumers’ rights
Risk of a breach of antitrust and consumer rights laws and regulations.
Corruption
Risk of willful misconduct or bribery carried out by persons inside or outside
the Group in order to obtain an unfair or illicit advantage.
Data protection
Risk of a breach of applicable data protection and privacy laws.
COMPLIANCE
External disclosure
Risk of dissemination of reports, accounting documents, communications or
other notices with wrong, inaccurate or incomplete information.
Financial regulation
compliance
Risk of a breach of international or national financial laws and regulations.
Tax compliance
Risk of a breach in complying with international or national fiscal laws and
regulations.
Compliance with other laws
and regulations
Risk of a breach of international, national or local laws and regulations not
already specified in the other risk categories (e.g., in electricity markets,
distribution, generation, procurement, permitting, stock exchanges).
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 Group.
Accordingly, Enel closely monitors legislative and regulatory
developments, such as:
• periodic revisions of regulation in the distribution seg-
ment;
• the liberalization of electricity markets, with special at-
tention being paid to the acceleration provided for in Ita-
ly and expected developments in South America;
• developments in capacity payment mechanisms in the
generation segment;
• regulatory measures to shield users from impact of price
developments.
In order to manage the risks associated with these devel-
opments, Enel has intensified its relationships with local
governance and regulatory bodies, adopting a transparent,
collaborative and proactive approach in addressing and
eliminating sources of instability in the legislative and regu-
latory framework.
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Integrated Annual Report 2023
Macroeconomic and geopolitical trends
The considerable internationalization of the Group – which
has a presence in many regions, including Europe, South
America, North America and Africa – requires Enel to con-
sider country risk, i.e. risks of a macroeconomic, financial,
institutional or social nature and those specifically associ-
ated 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 capable of moni-
toring the riskiness of the countries in which it operates.
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.
ECONOMIC FACTORS
INSTITUTIONAL AND
POLITICAL FACTORS
SOCIAL FACTORS
ENERGY FACTORS
Open Country Risk is a quantitative model that extends the more conventional defi nition of country risk used in the existing literature by providing a more
complete analysis of the risks involved, incorporating economic, fi nancial, political, climate 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 attrac-
tiveness in terms of economic growth, and finally a quantifi-
cation of extreme climate events as a cause of stress at the
environmental and economic level (economic factors). This
is accompanied by an assessment of the robustness of the
country’s institutions and political context (institutional and
political factors), an in-depth analysis of social phenome-
na, measuring the level of well-being, inclusion and social
progress (social factors), and the effectiveness of the en-
ergy system and its positioning 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.
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 sourc-
es in energy generation, the electrification process and the
environmental sustainability of the national energy system,
which together are crucial characteristics for evaluating the
country’s potential growth and attractiveness in the medi-
um to long term.
Risk management
99
Risks and strategic opportunities
associated with climate change
The identification and management of
risks connected with climate change and
actions to seize opportunities
As discussed in previous sections, the energy transition
and climate change 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 most recent
climate-change reporting standards, we have adopted a
framework that explicitly represents the main relation-
ships between scenario variables and types of risk and
opportunity for Group operations, specifying the strategic
and operational approaches to managing them, compris-
ing mitigation and adaptation measures.
There are two main macro-categories of risks/opportuni-
ties: those linked to the evolution of the transition scenar-
ios and those connected with developments in physical
variables. The framework has been created with a view to
ensuring overall consistency, making it possible to analyze
and evaluate the impact of transition phenomena (e.g.,
energy context) and physical phenomena (e.g., climate
change) within solid alternative scenarios, constructed us-
ing a quantitative and modeling approach combined with
ongoing dialogue with both internal stakeholders and ex-
ternal authorities.
The energy transition presents risks and opportunities
connected both with changes in the regulatory and legal
context and trends in technology development and com-
petition, electrification and customer behavior and the
consequent market developments.
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 condi-
tions.
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.
In general, adapting to the probable changes that will oc-
cur in the future also drives activities in the field of innova-
tion and strategic positioning: new businesses and better
products could be found to live sustainably in the changed
context.
The Enel Group is contributing to realizing the transition
and the opportunities that may arise. As discussed pre-
viously, our strategic choices, which are already strongly
oriented towards the energy transition, with more than
90% of investments directed at improving a number of the
Sustainable Development Goals, enable us to incorporate
risk mitigation and opportunity maximization “by design”,
adopting a positioning that takes account of the medi-
um- and long-term phenomena we have identified. The
strategic choices are accompanied by the operating best
practices adopted by the Group.
100 Integrated Annual Report 2023
Framework of main risks and opportunities
Scenario
phenomena
Time horizon
Risk & opportunity
driver
Description
Transition
Starting with short term
(1-3 years)
Policy & Regulation
Transition
Starting with medium
term (2027-2034)
Market
Starting with medium
term (2027-2034)
Product and
Services
Transition
Starting with medium
term (2027-2034)
Technology
Risk/opportunity: policies on
CO2 prices and emissions,
energy transition policies
and financial instruments,
revision of market design and
permitting procedures, and
resilience regulation.
Risk/opportunity: changes in
the prices of commodities,
raw materials and energy,
evolution of energy
mix, changes in retail
consumption, changes in
competitive environment.
Risk/opportunity: increase/
decrease in margins and
greater scope for investment
as a consequence of the
transition in terms of greater
penetration of electrical
mobility, distributed
generation and new
technologies for the direct
and indirect electrification of
final consumption.
Acute physical
Starting with short term
(1-3 years)
Extreme events
Risk: especially extreme
weather/climate events,
which can damage assets and
interrupt operations.
Chronic
physical
Medium (2027-2034)
and long term (2035-
2050)
Market
Risk/opportunity: increase
or decrease in electricity
demand under influence of
temperature, whose variations
can impact the business.
Increase or decrease in
renewables output, which
may be affected by structural
changes in resource
availability.
Management approach
The Group is minimizing its exposure to risks
through progressive decarbonization and the
focus of the business on renewables, grids and
customers. The business model is designed to
maximize the benefits of our integrated position
in the core countries and leveraging partnership
and stewardship activities, which enables us to
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 that explore ambitious national
decarbonization scenarios in the various
countries in which Enel operates.
The Group is maximizing opportunities by
adopting a strategy founded on the energy
transition, focusing on the electrification of
energy consumption and the development of
renewables and a geographical positioning
in countries in which we have an integrated
presence. Considering alternative transition
scenarios, the Group assesses the impact of
different commodity price trends, changes in the
share of renewables in the generation mix and
the electrification of final consumption.
The Group is maximizing opportunities thanks
to its strong positioning in new businesses
and "beyond commodity" services. In addition,
considering alternative transition scenarios, the
Group assesses the impact of different trends in
the electrification of consumption.
The Group is maximizing opportunities thanks
to its strong strategic positioning in new
businesses and grids at the global level. With the
penetration of direct and indirect electrification
technologies, considering alternative scenarios,
the Group assesses the potential opportunities
for scaling existing and potential businesses and
for the development of new solutions linked to
digitalization and resilience of power grids.
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 generation
plants and long-term climate scenarios to
identify any chronic changes in renewable source
availability.
Risk management
101
SCENARIO
INTEGRATION
VULNERABILITY
ASSESSMENT
PRIORITIZATION
ADAPTATION
PLANS
High level (e.g., Open
Analysis of vulnerabilities
Specifi cation of adaptation
Development of
Country Risk, evolution of
to quantify risk at the asset
energy system)
Site specifi c (e.g., high
resolution climate data)
level (existing and new
investment)
priorities at the local level
and main adaptation risks
and actions at the country
level
long-term adaptation plans
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 2023 can be performed; the medium term
(until 2027-2034), in which it is possible to assess the ef-
fects of the energy transition; and the long term (2035-
2050), in which chronic structural changes in the climate
should begin to emerge in addition to the most evident
transition effects.
In order to facilitate the correct identification and man-
agement of the risks and opportunities associated with
climate change, a Group policy was adopted in 2021 that
describes the common guidelines for assessing these
risks and opportunities. The “Climate change risks and
opportunities” policy defines a harmonized approach for
integrating issues relating to climate change and the en-
ergy transition into the Group’s processes and activities,
thus informing industrial and strategic choices to improve
business resilience and long-term sustainable value cre-
ation, in line with the adaptation and mitigation strategy.
The main steps considered in the policy are described be-
low.
• Prioritization of phenomena and scenario analysis.
These activities include the identification of physical
and transition phenomena relevant to the Group and
the consequent preparation of the scenarios to be
considered, which are developed through the analy-
sis and processing of data from internal and external
sources. For the phenomena so identified, functions
can be developed to connect the scenarios (for exam-
ple, data on changes in renewable sources) to the oper-
ation 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 opera-
tional, economic and financial level, consistent with the
processes in which they are integrated (for example,
design of new buildings, evaluation of operational per-
formance, etc.).
• Operational and strategic actions. The information ob-
tained from the previous activities is integrated into
processes, informing the decisions of the Group and
the business activities. Some examples of activities and
processes 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, engi-
neering and business development.
The main sources of risk and opportunity from the evolu-
tion of transition scenarios and physical variables, the best
practices for the operational management of weather and
climate phenomena, and the qualitative and quantitative
impact assessments performed to date are discussed be-
low. The above activities are performed on the foundation
of an ongoing effort during the year to analyze, assess and
manage the information produced. The process of dis-
closing information on the risks and opportunities con-
nected with climate change will be gradual and incremen-
tal from year to year, in line with the recommendations of
the most recent climate-change reporting standards.
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 and geopolitical and market conditions
make it every more important to develop resilient business
strategies, i.e. strategies both capable of withstanding
external shocks, and therefore of absorbing the causes
of potential crises and thriving even when external con-
ditions change, whether slowly or rapidly, and sufficiently
flexible to identify new opportunities and transform them
into actions. 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 90% 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, aiming
at the same time at significantly reducing the use of fossil
fuels and increasing quality and efficiency, the Group’s in-
vestments and activities delineate, by design, a long-term
growth path that is in line with an energy transition consis-
tent 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
102 Integrated Annual Report 2023
country risk indices) and high-resolution data, which make
it possible to study physical impacts at the single-site lev-
el. The approach applies to both the existing portfolio and
new investments. More details on new investments are
described in the dedicated section “Inclusion of climate
change effects in the assessment of new projects”.
Asset vulnerability assessment makes it possible to identi-
fy priority actions to increase resilience.
SCENARIO
INTEGRATION
VULNERABILITY
ASSESSMENT
PRIORITIZATION
ADAPTATION
PLANS
High level (e.g., Open
Country Risk, evolution of
energy system)
Site specifi c (e.g., high
resolution climate data)
Analysis of vulnerabilities
to quantify risk at the asset
level (existing and new
investment)
Specifi cation of adaptation
priorities at the local level
and main adaptation risks
and actions at the country
level
Development of
long-term adaptation plans
to increase resilience
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 sce-
narios in combination with the elements that make up the
risk identification process (e.g., competitive context, long-
term vision of the industry, materiality analysis, technolog-
POLICY & REGULATION
ical evolution, etc.) to identify the drivers of potential risks
and opportunities. Priority is given to the most material
phenomena. The main risks and opportunities identified
within this framework are described below.
Limits on emissions
and carbon pricing
Laws and regulations that introduce more stringent emission limits by government action (non-mar-
ket 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 policymakers involved and
limited effectiveness of the policy instruments, with an impact on the speed of the trend towards
electrification and decarbonization in the various sectors, compared with a decisive Group strat-
egy focused on the energy transition.
Policies and
regulation for
accelerating the
transition and
energy security
Introduction of policies, regulatory frameworks and revision of market design features incentiviz-
ing the energy transition, consequently guiding the energy system towards the use of renewable
energy resources as the mainstream approach in the energy mixes of countries, greater electrifi-
cation of energy consumption, energy efficiency, flexibility of the electrical system and upgrading
of infrastructure.
• Opportunities: creation of a more favorable framework for investment in renewable energy,
thanks also to the development of long-term markets (PPAs, CfDs) in electricity technologies
and distribution grids in line with Group strategy.
• Risks: slow administrative authorization processes, and ineffective market design and regulatory
frameworks in core countries can reduce asset profitability and limit growth opportunities.
Risk management
103
Resilience
and adaption
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 the risk of impact on service quality, loss-
es on corporate assets and service continuity for customers and communities.
• 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
Development of policies and financial instruments that encourage the energy transition, which
should be capable of supporting an investment framework and a long-term, credible and stable
positioning of policymakers. 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 financial resources in line with energy transition objectives and the related impact on costs
and on finance charges; introduction of subsidized support tools (funds and calls) for the tran-
sition.
• Risks: actions and instruments are not sufficient to drive an acceleration of energy transition,
uncertainty or slowdown in the introduction of new instruments and rules due to the deteriora-
tion in the public finances.
MARKET
Commodity prices
dynamics
Changes in market dynamics, such as those related to the volatility of commodity prices, can influ-
ence the behavior of operators, policymakers and customers.
• Opportunities: acceleration of clean electrification as a solution to reduce energy costs and ex-
posure to commodity volatility. Increased propensity of customers to switch from conventional
fossil fuel technologies to efficient electric technologies.
• Risks: “disorderly” energy transition caused by the introduction of potentially distortive mea-
sures.
Market dynamics
Propensity of final customers to adopt more sustainable technologies, thanks to greater awareness
of the risks of climate change and greater regulatory pressure.
• Opportunities: positive effects associated with the growth in electricity demand and the greater
room for renewables, thanks in part to greater demand for long-term contracts (PPAs).
TECHNOLOGY
Penetration of
new technologies
supporting the
transition
Gradual penetration of new technologies such as electric vehicles, storage, demand response and
electrolyzers for the production of green hydrogen. Large-scale adoption of digital technologies to
transform operating models and “platform” business models.
• Opportunities: investments in developing technology solutions supporting the flexibility of the
electrical system. Additional boost to renewables for the production of green hydrogen.
• Risks: slowdowns and interruptions in the supply chain for raw materials and semiconductors
could lead to delays in procurement and/or increase costs, potentially slowing the penetration
of renewables, storage and electric vehicles.
104 Integrated Annual Report 2023
PRODUCTS AND SERVICES
Electrification of
residential energy
consumption and
industrial processes
With the gradual electrification of end uses, the penetration of products with lower costs and a
smaller impact in terms of local emissions and greater efficiency in the residential and industrial
sectors 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. Greater opportunities to provide be-
yond-commodity services and the opportunity to reduce customers’ energy costs and carbon
footprint. Greater investments in grids to support the electrification of consumption.
• Risks: additional competition in this market segment. Dependence on adequate development of
electricity grids, which are essential to deliver increasing loads and service continuity.
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.
• Opportunities: positive effects of the increase in electricity demand and greater margins con-
nected with the penetration of electric transportation and associated beyond-commodity ser-
vices.
• Risks: additional competition in this market segment.
The Group has already taken strategic actions to mitigate
potential risks and exploit the opportunities offered by the
energy transition.
A strategy focused on decarbonization and the energy
transition makes the Group resilient to the risks associ-
ated with the introduction of more ambitious policies for
emissions reductions and maximizes opportunities for the
development of renewable generation, infrastructure and
enabling technologies, thanks in part to our geographical
positioning in countries with an integrated presence.
To quantify the risks and opportunities engendered by the
energy transition, the transition scenarios described in
the section “Enel’s energy transition scenarios” have been
considered.
In the Enel Reference scenario, the progressive electrifi-
cation of final energy consumption, especially in transport
and the residential sector, leads to an increase in electric-
ity consumption and therefore to a growth in electricity
demand. This dynamic reduces the risk associated with
the progressive increase in the share of renewables in the
energy mix, which could trigger a reduction in the price of
wholesale electricity. Furthermore, revisions of the market
design in favor of long-term remuneration would have a
positive impact on profitability.
The effects of the Slower Transition and Accelerated Tran-
sition on the variables that can most impact the business
were then identified, in particular electricity demand influ-
enced by developments in the electrification of consump-
tion – and hence the penetration of electrical technolo-
gies – and the power generation mix.
With regard to the electrification of consumption, howev-
er, the Slower 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
Reference scenario, which is expected to have a limited
impact on the commodity and beyond-commodity retail
business. At the same time, the decline in electricity de-
mand would leave less room for growth in renewables, with
an impact on the generation business, partially offset by
higher electricity prices than in a scenario with more re-
newables capacity.
The Accelerated Transition scenario assumes a more rap-
id reduction in the costs of green hydrogen production
technologies compared with the Reference scenario. This
translates into greater penetration for green hydrogen,
with a consequent additive effect on national electricity
demand and the installation of renewables capacity com-
pared with the Reference scenario.
All of the scenarios, but especially the Reference and
the Accelerated Transition scenarios, will entail a greater
role for grids. In fact, we expect a significant increase in
distributed generation and storage systems, the greater
penetration of charging infrastructure and a growing rate
of electrification of consumption. These developments will
lead to the decentralization of power withdrawal/injection
points, an increase in electricity demand and the average
power required, and strong variability of energy flows, re-
quiring dynamic and flexible management of the grid.
Risk management
105
Scenario
phenomena
Risk/
opport unity
category
Description
Time
horizon
Description of
impact
GBL
involved
Scope
Quantifi cation -
Impact type
Quantifi cation - range
Upside/
Downside
<€100
mil
€100-300
mil
>€300
mil
Upside (Accelerated Transition vs Reference)
Downside (Slower Transition vs Reference)
Risk/opport unity:
more/less scope
for investment in
new renewables
capacity and power
price changes
corresponding to
diff erent degrees
of renewables
penetration
Medium
term(1)
Risk/opport unity:
smaller/
larger margins
depending
on degree of
electrifi cation of
consumption
Medium
term(1)
Risk/opport unity:
larger/smaller
margins and
more/less scope
for investment
depending on
the eff ects of the
transition in terms
of penetration of
new technologies
and electric
transport
Medium
term(1)
Two alternative
transition scenarios
to the Reference
scenario are
considered, with
respect to which the
Group has evaluated
the impact of
diff erent degrees
of renewables
penetration on the
reference power
price and additional
capacity
Considering two
alternative transition
scenarios to the
Reference scenario,
the Group has
evaluated the
eff ects of a change
in average unit
consumption and
electricity demand
as a result of greater/
lesser electrifi cation
of energy
consumption
Considering
two alternative
transition scenarios
to the Reference
scenario, the Group
has evaluated
the eff ects of
diff erent trends in
the electrifi cation
of transport and
the electrifi cation
of domestic
consumption
Global
Generation
Global Enel
X Retail
Enel
Group
EBITDA/year
Global Enel
X Retail
Global Grids
Enel
Group
EBITDA/year
Global Enel
X Retail
Enel
Group
EBITDA/year
Upside
Downside
Upside
Downside
Upside
Downside
Transition
Market
Transition
Market
Transition
Product and
Services
(1) 2030 benchmark.
Adoption of
measures to
increase Customer
Base in order
to compensate
for the negative
impact on margins
Adoption of
measures to
increase Customer
Base in order
to compensate
for the negative
impact on margins
The Group therefore expects that in this scenario incre-
mental investments will be needed to ensure connections
and adequate levels of quality and resilience, encouraging
the adoption of innovative operating models. These in-
vestments must be accompanied by consistent policy and
regulatory scenarios to ensure adequate financial returns
within the Enel Grids Business Line.
106 Integrated Annual Report 2023
Chronic and acute physical phenomena: possible impacts
on our business, risks and opportunities
Taking the scenarios developed by the Intergovernmental
Panel on Climate Change (IPCC) as our reference point,
developments in the following physical variables and the
associated operational and industrial impacts connected
with potential risks and opportunities are assessed.
PRIORITY
High
Low
Not relevant
RAIN/SNOW
WIND
SOLAR
RADIATION
SEA
LEVEL
AIR
TEMPERATURE
RIVER/SEA
TEMPERATURE
PRIORITY
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Grids
Enel X
Global Retail
Chronic physical changes creating risks and
opportunities
The climate scenarios developed with the International
Centre for Theoretical Physics (ICTP) in Trieste show ma-
terial changes beginning to emerge between 2030 and
2050. In practice, while significant meteorological varia-
tions have been recorded, it is still a challenge to establish
in the short term whether certain phenomena are chang-
ing structurally, or whether the average benchmark values
are already changing. Instead, it is established on the lon-
ger time horizon with probability intervals.
The main impacts of chronic physical changes are expect-
ed to 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 re-
duction in electricity demand.
• Thermal generation: variation in the level and average temperatures of the oceans and rivers,
with effects on thermal generation.
• Hydroelectric generation: variation in the average level of rainfall and snowfall and temperatures
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.
Risk management
107
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 im-
pacts. The following matrix identifies the chronic climate
phenomena to which each of the Group’s assets and tech-
nologies was found to be most vulnerable, differentiating
by the priority of the phenomenon.
In particular, the Group works to effectively estimate the
relationships between the changes in the physical vari-
ables reported in the matrix and the change in producibility
relating to individual plants for the different technologies.
Analysis of the impact of chronic climate
change on renewable generation
To calculate the impact of the chronic effects of climate
change on the production of our assets, a series of ad hoc
functions have been created for each renewable technolo-
gy (wind, solar and hydroelectric) and plant, which associate,
with each change in climatic variables (e.g., temperature, ra-
diation, wind speed, rainfall), probable changes in terms of
electrical producibility of the plants in our portfolio.
To calibrate these “link” functions, we started from the his-
torical data of the weather-climate variables(33) and from
the internal references of the observed producible energy
of our plants. In this way, link functions have been obtained
which respond to the specific characteristics of each re-
newable plant and technology.
It was therefore possible to study the chronic climate im-
pacts for possible future projections of climate variables
(RCP 2.6, 4.5 and 8.5 scenarios).
Together with the chronic phenomena, which involve aver-
Scenario
phenomena
Risk/
opport unity
category
Description
Time
horizon
Chronic
physical
Market
Risk/
opport unity:
increased or
decreased
electricity
demand
Medium/
long term
Chronic
physical
Market
Risk/
opport unity:
increase or
decrease in
renewable
generation
Medium/
long term
Description of impact
Electricity demand is also
infl uenced by temperature,
fl uctuations in which can
impact the business. Although
structural changes should
not emerge in the short
term, sensitivity analyses
of variations in electricity
demand are used, in line with
the climate scenarios analyzed
Renewable generation is
infl uenced by the availability
of resources, fl uctuations in
which can impact the business.
Although structural changes
should not emerge in the
short term, the sensitivity
of the Group's results was
assessed using sensitivity
analyses considering historical
meteorological volatility
and variations in generation
potential in the diff erent climate
scenarios
age structural changes, it is necessary to study the typical
volatility of the weather and therefore more short-term.
Both the information derived from the variation ranges of
the chronic trends projected by the climatic scenarios and
the historical volatilities of the meteorological data were
taken as input for the strategic planning, through analysis
of the variations in electricity production (TWh) over the last
10 years.
All fluctuations, both weather and climatic, can lead to ad-
justments, since the production of the plants feeds the
sourcing for the sale of energy to customers. In essence,
reductions in terms of energy for renewable production can
lead to imbalances on the sourcing side which can lead to
the purchase of the missing volumes on the market to feed
the commercial strategy. Conversely, greater renewable
production leads to a possible reduction in the purchase of
volumes on the market (or possibly higher sales).
Chronic structural changes in the recent trends of physical
variables will manifest themselves gradually over long time
scales. In order to obtain an indicative projection of the po-
tential impacts, and include a possible acceleration of the
manifestation of chronic effects, we can perform a stress
test of the Business Plan with regard to the factors poten-
tially influenced by the physical scenario, taking account of
historical weather variability and the climate changes that
are expected to emerge in the long term. The current Busi-
ness Plan was constructed using the information contained
in the median scenarios for chronic phenomena, so as to
consider the possible effects of trends in climate variables.
The following chart reports the findings of this analysis.
Upside scenario
Downside scenario
Quantifi cation - range
GBL
involved
Scope
Quantifi cation -
Impact type
Upside/
Downside
<€100
mil
€100-
300 mil
>€300
mil
Global
Generation
Global Grids
Enel
Group
EBITDA/year
Global
Generation
Enel
Group
EBITDA/year
Upside
Downside
Upside
Downside
(33) Historical data from ISPRA (Istituto Superiore per la Protezione e la Ricerca Ambientale) e ERA5 data from ECMWF (European Centre for Medium-Range
Weather Forecasts).
108 Integrated Annual Report 2023
Acute physical changes creating risks and
opportunities
With regard to acute physical phenomena (extreme events),
the intensity and frequency of extreme physical phenome-
na can cause significant and unexpected physical damage
to assets and generate negative externalities associated
with the interruption of service.
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 is already managing the risk asso-
ciated 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).
In the case of the vulnerability of assets in the portfolio, a
table of the main extreme events relevant to the different
technologies was defined in collaboration with the Group’s
relevant global business lines, in order of priority, as was
done for chronic phenomena.
PRIORITY
High
Low
Not relevant
PRIORITY
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Grids
Enel X
Global Retail
HEAT WAVES
FLOODING
/ HEAVY
PRECIPITATION
HEAVY
SNOW/ICING
HAIL
WINDSTORMS WILDFIRES
LIGHTNING
Under
assessment
Under
assessment
Under
assessment
Under
assessment
Under
assessment
In order to understand the impacts on our business, this
matrix was considered for conducting possible ad hoc
analyses in order of priority.
Acute event risk assessment methodology
In order to quantify the risk deriving from extreme events,
the Group uses a consolidated catastrophic risk analysis
approach, which is adopted in the insurance sector and
in the IPCC reports.(34) This methodology is used both in
assessing risks to support industrial and strategic deci-
sion-making and to hedge the risk through its insurance
business units and the captive insurance company Enel
(34) 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”, United Nations International Strategy for Disaster
Reduction. 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 Intergover-
nmental Panel on Climate Change (IPCC)“, Cambridge University Press, Cambridge, 2012.
Risk management
109
Risk/
Scenario
opport unity
Time
horizon
phenomena
category
Description
Description of impact
Scope
Impact type
Downside
mil
Upside scenario
Downside scenario
Quantifi cation -
Upside/
<€100
Quantifi cation - range
€100-
300 mil
>€300
mil
Chronic
physical
Market
Medium/
long term
Enel
Group
EBITDA/year
impact the business. Although
Global Grids
Risk/
opport unity:
increased or
decreased
electricity
demand
Risk/
opport unity:
increase or
decrease in
renewable
generation
GBL
involved
Global
Generation
Electricity demand is also
infl uenced by temperature,
fl uctuations in which can
structural changes should
not emerge in the short
term, sensitivity analyses
of variations in electricity
demand are used, in line with
the climate scenarios analyzed
Renewable generation is
infl uenced by the availability
of resources, fl uctuations in
which can impact the business.
Although structural changes
should not emerge in the
short term, the sensitivity
of the Group's results was
assessed using sensitivity
analyses considering historical
meteorological volatility
and variations in generation
potential in the diff erent climate
scenarios
Upside
Downside
Upside
Downside
Chronic
physical
Market
Medium/
long term
Global
Generation
Enel
Group
EBITDA/year
Insurance NV. The Group manages the various phases of
assessing the risks connected with natural disasters: from
assessment and quantification to the corresponding in-
surance coverage to minimize impacts.
In all of these types of natural disasters, 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, which
can also be expressed as the recurrence interval or re-
turn period. A hazard that has a specific geographical
distribution is analyzed in the areas where the Group
assets involved are located.
For this purpose, the Group adopts the hazard map
tool, which associates the estimated hazard for the dif-
ferent types of natural disasters with each geographical
point. This information, organized in geo-referenced
databases, is obtained from global reinsurance compa-
nies or developed on the basis of data from weather
consulting firms or academic institutions.
• Vulnerability, which indicates in percentage terms how
much value would be lost upon the occurrence of a
given catastrophic event. In more specific terms, ref-
erence can be made to the damage to material assets,
the impact on the continuity of electricity generation
and/or distribution or the provision of electrical ser-
vices to end users.
The Group, especially in the case of damage to its as-
sets, conducts and promotes specific vulnerability
analyses for each technology in its portfolio, for ex-
ample solar, wind and hydroelectric generation plants,
transmission and distribution grids, primary and sec-
ondary substations, etc.
• Exposure, i.e. 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, vulnerabili-
ty 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 scenarios, differentiates its risk analyses in ac-
cordance with the specificities of the various associat-
ed time horizons. The following table summarizes the
scheme adopted for the assessment of the impacts
deriving from acute physical phenomena.
Time horizon
Hazard
Vulnerability
Exposure
Short term
Hazard maps based on historical data
and meteorological models
Medium and long term
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
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 cov-
erage 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 Enel Grids 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 var-
ious risk mitigation measures, which, as described below,
include both insurance coverage and other management
and operational arrangements to further lower the Com-
pany’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 €130 mil-
lion, which represents less than 0.06% of the value of the
Group’s insured assets as at 2023 (about €220 billion).
110 Integrated Annual Report 2023
Acute Events Risk Index (AERI)
As reported in previous publications, the Group has
developed a climate change index called Acute Events
Risk Index (AERI)(35) to provide a high-level indication
of changes in risk to renewable generation plants
attributable to climate change for acute phenomena.
In particular, the results show the share of installed
capacity that, based on climate projections (RCP 2.6), will
be located in areas characterized by a risk class that will
vary depending on the expected increase in the hazard
attributable to climate change in the 2030-2050 period
compared with the historical period.
The AERI considers the Group’s hydroelectric, solar and
wind plants (Enel Green Power and Enel X) and in 2023
it was updated to include COD 2022 plants.(36) The index
uses climate metrics and the approach followed for
the preliminary screening, which will also be described
later, in order to identify assets that will be exposed to
more intense climate change effects. The objective of
this evaluation is to define the priorities for the detailed
analyses necessary for the identification of adaptation
actions. This offers a summary representation of a
screening performed for each plant and relevant
physical phenomenon, against which priorities will be
evaluated for more detailed analyses.
BREAKDOWN OF GROUP CAPACITY (%)
BY CLIMATE CHANGE RISK CATEGORY
(RCP 2.6 SCENARIO)
In particular, the relevant physical phenomena are
considered for each plant, with respect to which the
level of future climate change is calculated and a risk
class (high, medium, low, very low) is assigned to each
asset using an appropriate weighting system. At this
point it is possible to aggregate the results and arrive
at the Group AERI value broken down by each risk
category.
As shown in the figure below, in the RCP 2.6 scenario,
just over 1% of the total analyzed capacity of the Enel
Group is located in areas classified as at high risk from
climate change: for these plants, a detailed analysis
is a priority in order to identify possible adaptation
measures. By comparison, about 11% will be located in
medium-risk areas. This means that the asset situation
must be analyzed on a rolling basis to evaluate whether
to proceed with more in-depth analyses using higher
resolution data in order to determine the need for
adaptation with respect to specific phenomena. Finally,
the remaining installed capacity (88%) is associated with
a low or very low risk: plants in these categories are not
expected to be exposed to substantial climate change
impacts in the RCP 2.6 scenario. For these, therefore,
the criteria and actions already implemented remain
adequate and any detailed studies will have a lower
priority. The analyses will in any case be updated and
refined on an ongoing basis to ensure monitoring of
expected climate change effects on all plants.
Risk class
High
Medium
Low
Very low
1%
11%
28%
Acute Events Risk Index (AERI) at Group level for the RCP
2.6 scenario
60%
(35) The AERI evaluates the percentage of capacity at risk in the long term (2030-2050) compared with the historical period. It is thereby assumed that the
Group’s plants are resilient to phenomena observed in the recent past.
(36) Plants in Peru are not included in the estimation of the index. In 2023, the index calculation methodology was also refined to take better account of the
intrinsic uncertainty of climate data.
Risk management
111
The Group is also working to extend the analysis to the
distribution grids and thus also obtain qualitative and
quantitative information for Enel Grids on the climate risks
associated with that business line’s assets.
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 (“Property Damage and Business
Interruption Insurance Program”) for material damage
to assets and the resulting business interruption. Ac-
cordingly, in addition to the costs of rebuilding assets
(or parts thereof), the financial losses due to the stop-
page of electricity generation and/or distribution are
also covered, within the limits and conditions defined
in the policies;
• the Liability Program (“General & Environmental Liabil-
ity Insurance Program”), which insures against losses
caused to third parties, including the impact that ex-
treme events may have on the Group’s assets and busi-
ness.
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.
The presence of this effective insurance coverage does
not make the actions that the Group takes in the pre-
ventive maintenance of its generation and distribution
assets any less important. In fact, while on the one hand
the effects 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 optimiz-
ing risk financing and minimizing the cost of the Group’s
global insurance coverage programs, including the risk
associated 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 in-
ternal 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 crucial 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 climate change adaptation solu-
tions using an overall approach that, as described in the
“Climate change strategy“ section, assesses potential
impacts in order to appropriately calibrate the necessary
adaptation measures to enhance our ability to respond to
adverse events (Response Management) and to enhance
the resilience of the business (Resiliency Measures), there-
by reducing the risk of future negative impacts of adverse
events. Furthermore, the skills and tools developed to an-
alyze the effects of climate change can be used to create
value, for example through the conception of new busi-
ness options that offer solutions to facilitate the adapta-
tion of communities and all stakeholders.
The adaptation solutions can involve both policy actions
and best practices implemented in the short term, and
long-term decisions.
For new investments, in line with the general approach,
it is also possible to take early action in the design and
construction phase to reduce the impact of climate risks
“by design”, for example by taking account in the design
stage of climate scenarios and asset vulnerability analy-
ses for specific phenomena in order to implement resilient
solutions.
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 under the impetus of cli-
mate change. In the following sections, certain activities
are described in greater detail.
112
Integrated Annual Report 2023
Business lines
A. Resiliency Measures – Enhancing asset resilience
B. Response Management – Adverse event
management
Enel Green Power and
Thermal Generation
Existing assets
1. Guidelines for hydraulic risk assessment and design
2. Lessons-learned feedback from O&M to E&C and BD
Existing assets
1. Critical incident and event management
2. Site-specific emergency management plans and
New construction
In addition to actions for existing assets:
1. Climate change risk assessments (CCRA) included in
environmental impact documentation (pilot)
procedures
3. Specific tools for forecasting imminent extreme
events and weather alerts
Enel Grids
Existing assets and new construction
1. Guidelines for developing grid resilience enhancement
Existing assets
1. Strategies and guidelines for Readiness, Response
plans (e.g., the “Network Resilience Enhancement Plan” of
e-distribuzione)
and Recovery actions for the distribution grid
2. Global guidelines for emergency and critical event
2. Strategies and guidelines for Risk Prevention on distribution
management
grid
3. Resilience Plan for Italy and Network Strength in Colombia
3. Risk prevention and preparation measures for fires
involving electrical installations (lines, transformers,
etc.)
Enel X Global Retail
Existing assets
1. Preliminary analysis of the impacts of medium/long-term
Existing assets
1. Enel X Critical Event Management
climate change
Enel has also completed a project involving the construc-
tion of a catalog of practical intervention actions intended
to enhance the resilience of assets and their ability to re-
spond to possible climate change effects.
The catalog includes targeted actions for each of the rel-
evant events reported in the matrices of relevant phenom-
ena (see previous sections), for each geographical area of
interest of the Group, differentiated by the different asset
technologies adopted in these areas.
The catalog of possible adaptation actions, which is main-
tained and updated on a cyclical basis in response to
emerging needs and the refinement of the analyses con-
ducted prior to their development, comprises more than
100 actions, including:
• weather alerting (which includes the use of various tools
to monitor and manage assets and natural resources);
• automation (for example, implementation on medi-
um-voltage grids to reduce the impact of faults on cus-
tomers as measured in terms of SAIDI and SAIFI);
• structural reinforcement across the entire asset base
with a special focus on critical components;
• continuous staff training;
• maintenance of vegetation and care of the environ-
ment immediately surrounding assets.
The catalog is an important collection of possible adap-
tation options that can be used to generate estimates of
cost and risk avoided for applications at specific sites. This
information makes it possible to select the most appropri-
ate action on the basis of a cost-benefit analysis that takes
account of the expected risks in each specific situation.
How Enel ensures the resilience of 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 River
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.
Risk management
113
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
Main areas:
Maintenance
O&M Operation
Dams and Hydraulic
Infrastructure Safety
Critical Event
Management
• 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 vulnera-
bilities through digital GISs (Geographic Information Systems) and satellite measurements.
• Advanced monitoring of over 100,000 parameters (with over 160 million historical measurements)
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
Oklahoma in the United States.
• Adoption of specific guidelines for performing hydrological and hydraulic studies from the ear-
liest development stages, aimed at assessing the risks inside plants and in the areas outside
plants, with application in the design phase of drainage and mitigation systems in compliance
with the principle of hydraulic invariance.
• Verification of potential climate trends for the main project parameters in order to take them into
account in the sizing of systems for relevant projects (for example, assessments of the tempera-
ture of the coolant source in order to ensure greater flexibility in cooling in new CCGTs) 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 technol-
ogy 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.
Analyzing future climate impacts to
identify adaptation needs
In the Generation Business Line we mapped globally
relevant phenomena (see earlier matrix) to perform
analyses of acute and chronic climate risks in order to
estimate the medium/long-term impact on the Group’s
generation plants.
In particular, the analysis of acute events was
performed in two phases, involving:
• preliminary screening of the hazard and exposure
for all hydro, wind and solar plants with the aim of
classifying the existing plant portfolio, considering
specific vulnerabilities and identifying plants at
greater risk in order to conduct a more detailed
analysis;
• detailed analysis of plants with a greater risk priority,
enabling the future identification of possible
adaptation actions and measures to prevent damage
from acute events and output losses.
The detailed analysis was conducted to take account
of the possible increase in the frequency and intensity
of extreme events and consequently identify assets
exposed to the related phenomenon.
The detailed analysis of the pilot sites identified a small
number of assets at high risk in the long term for the
entire set of phenomena considered.
Heavy rainfall
• An analysis was performed for a significant number
of plants, which highlighted a high correlation
between the geo-morphology of the site and the
impact of the phenomenon on the asset, confirming
the need for a specific site analysis, especially for
those assets most exposed to the phenomenon
114 Integrated Annual Report 2023
involved (the most exposed technologies included
photovoltaics while the greatest exposures at the
geographical level were found in Latin America).
• More extensive studies made it possible to identify
possible structural adaptation measures to lower
the level of hydraulic risk to an acceptable threshold.
Their implementation will require a cost-benefit
analysis. Such structural adaptation interventions
can, for example, involve the construction of
hydraulic mitigation works (mainly embankments,
riverbed reprofiling, adaptation of drainage channels,
expansion and lamination tanks) or raising of the
components at risk with earth moving works or
increasing the length of the support structures in the
case of photovoltaic panels.
Heat waves
• The impact of heat waves on photovoltaic
systems was studied in depth. This critical event
is characterized by the persistence of high
temperatures for multiple days with no rainfall.
• Despite the increase in the frequency and intensity
of this climate phenomenon, no significant impacts
were registered on this asset, with just a reduction
in the performance of the inverter due to derating in
certain periods of the year in specific locations.
Windstorms
• With regard to windstorm risk, despite scenarios
showing an increase in such events, the impact
analysis shows a high level of resilience by design,
especially for the wind farms analyzed.
• The implementation of any adaptation measures will
require specific site assessments based on a cost-
benefit analysis, considering the limited impact of
the phenomenon on Enel Green Power plants.
Wildfires
• With regard to fire risk, the business line conducted
a study to identify the areas at greatest risk. In order
to prevent fires outright and/or reduce response
times, a number of possible adaptation measures
were identified for adoption in the design or
operational phase of plants. These include additional
removal of vegetation around the project area, the
creation of firebreaks, additional coordination with
local authorities on how to respond in the event of a
fire.
The methodologies developed will be progressively
refined with the aim of also applying them to the
design and development of new Enel Green Power
plants. The application of these assessments in
the design stage will help further boost resilience,
forecasting the risks and preserving the value of new
projects.
These studies will make it possible to quantify the
need for adaptation in terms of Risk Prevention (for
example, the adoption of an adaptive design) and Event
Management and management of residual risk.
Grid resilience lies at the heart of Enel’s strategy
The Enel Grids Business Line, following the Group policies
mentioned above (“Climate change risks and opportuni-
ties”), has issued a specific policy (Climate Change Risk
Assessment) that provides general criteria, methodolog-
ical tools and requirements for identifying, analyzing and
assessing climate change risks in respect of the assets
managed and the activities conducted, in order to monitor
the risk and the actions to be implemented to mitigate its
impacts.
In the Enel Grids Business Line the Enel Group has adopt-
ed 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 restoration of ser-
vice once climate events have caused damage to assets
and/or outages. The 4R strategy is divided into four phases:
1. 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. The choice of technical solutions to en-
hance resilience is guided by a catalogue that identifies
the most appropriate response for each climate event
and geographical area.
2. 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.
3. Response: this represents the phase in which the op-
erational 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 re-
sources in the field and the capacity to remotely restore
power supply through resilient backup systems.
Risk management
115
4. Recovery: this is the last phase, in which the goal is to
return the grid to ordinary operating conditions as soon
as possible in cases where an extreme weather event
has caused service interruptions despite the increased
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
Measures for Risk
Prevention and
Preparation in
case of wildfires
affecting the
electrical
installations
Support actions
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 service 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 AS-IS 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 grid of particularly critical extreme events in a
given area/region. The policy therefore covers the first two phases of the 4R approach, suggesting
measures regarding risk prevention and readiness.
In Italy, this policy has been translated into the Resilience Plan that e-distribuzione has prepared
each year since 2017, which represents an addendum to the Development Plan for ad hoc invest-
ments over a 3-year time horizon to reduce the impact of extreme events in certain critical areas,
namely heat waves, icing and windstorms (with the associated risk of falling trees). In 2017-2021,
some €672 million were invested and about €262 million will be invested in the following three-year
period, as specified in the addendum to the 2022-2024 Plan. To address these risks, investments
include the targeted replacement of uninsulated lines with insulated conductors, the underground-
ing 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 grids to
extreme events, taking due account of the distinctive characteristics of each territory.
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 exter-
nal origin or, in rare cases, are caused by the grid itself and could potentially threaten Enel plant.
The document provides guidelines to be implemented in the various territories 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.
These include the implementation of systems for weather forecasting, monitoring the status of
the grid and evaluating the impact of critical climate phenomena on the grid, 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, in addition to having in-
stalled and placed in operation three experimental stations to observe and investigate ice forma-
tion on MV lines, IoT sensor trials were launched to monitor on above-ground lines in areas that are
highly exposed to snow and wind (Project Newman).
Enel Grids is making a significant contribution to the draft-
ing of the initial industry publications on the importance of
resilience and adaptation to climate change and possible
actions, including the report issued by Eurelectric-EPRI(37)
in December 2022 entitled “The Coming Storm: building
electricity resilience to extreme weather”.
With a view to ensuring continuous improvement, Enel
Grids also performs scouting activities, directly contact-
(37) EPRI: Electric Power Research Institute.
116 Integrated Annual Report 2023
ing startups and industry experts or using challenges pro-
posed by the Enel Group’s innovation function, in order
to identify innovative technological solutions to support
climate impact and adaptation measures to increase the
resilience of the grid.
Analyzing future climate impacts to
identify adaptation measures
Beginning with the mapping of key phenomena at the
global level, Enel Grids monitors trends in the most
critical threats in the various countries in which the
Group operates in order to estimate their future
impact on the grid in the medium and long term. To
do this, it is first necessary to perform a preliminary
assessment of the impacts on the grid (including
associated failures) of the extreme weather events
that have occurred in the past. The mapping that
associates the most critical acute events to each core
country is shown in the figure below. This enables the
identification of priority analyses to identify any
adaptation measures.
RISK
High
Medium
Low
WILDFIRES
HEAVY SNOW/
ICING
HEAT WAVES
WINDSTORMS
FLOODING/HEAVY
PRECIPITATION
LIGHTNING
EVENT
Italy
Spain
São Paulo
Rio de Janeiro
Ceará
Chile
Colombia
Starting from these assessments, detailed studies
were then conducted for specific phenomena and
geographical areas. Here are some examples.
Heavy rainfall/windstorms
• An analysis was conducted to investigate the
phenomenon of explosive cyclogenesis (the
product of a combination of intense wind and rain)
in Spain, with projections of events up to 2050,
evaluating the possible future impacts on grid
assets. The initial findings suggest that the trend
is substantially in line with the historical observed
record, with the exception of the coastal areas
of Catalonia, where a possible intensification of
events is expected.
• Studies were also carried out in Colombia on
the impact of rainfall in both the Bogotá and
Cundinamarca areas, evaluating the possible
scenarios up to 2050. The in-depth studies carried
out show a substantial persistence over time of the
negative effects associated with this phenomenon.
On the basis of these initial results, the planned
response measures mainly regard waterproofing
secondary substations in urban areas, to avert flood
risk, and strengthening aerial infrastructures to limit
the consequences of the direct impact of rainfall.
• An initial analysis was conducted in Chile on the
impact of windstorms in the Santiago de Chile
concession area. The findings of the scenario
analysis through 2050 show the phenomenon
Risk management
117
persisting. This is being kept under observation for
future planning of work to reinforce the overhead
network by replacing bare conductors with cable.
Recovery and Resilience Plan) for the funds (€0.3
billion) allocated for increasing the resilience of
infrastructure.
Heat waves
• Heat waves in Italy were investigated further on
Wildfires
• With regard to fire risk, the business line,
the basis of the initial results in 2020. This critical
event is characterized by the persistence of high
temperatures over a period of several days in
correspondence with the absence of precipitation
which, by hindering the dissipation of heat from
underground cables, causes an anomalous
increase in the risk of multiple failures on grids,
especially in urban areas and in summer tourist
locales. The analyses performed have highlighted
how this climate phenomenon will intensify
in the coming decades by 10-40% by 2050
(depending on the climate scenario), requiring
adequate adaptation actions as already laid out
in the expanding commitment envisaged both
by the Resilience Plan indicated above and from
participation in the tender of the NRRP (National
consistent with the above policy, is preparing
an update of the policy on fire risk prevention,
applying an index that evaluates the fire risk of
areas based on topological and environmental
characteristics (FWI: Fire Weather Index) as a
support tool, with projections of scenarios to 2050
on developments in the phenomenon. So far,
each country has conducted a study to identify
the areas at greatest risk of forest fires. Today, the
study also draws on GIS (Geographic Information
System) mapping for more precise identification of
grids in different environments (protected natural
areas, forests, habitats). This makes it possible
to adopt even more effective construction or
maintenance design measures to prevent fire risk.
Adaptation activities – Enel X Global Retail
In order to address extreme climate events, the Enel X
Global Retail Business Line has continued to work on es-
timating the potential impacts of physical phenomena in
order to develop actions to adapt to climate change, iden-
tifying the risks and opportunities for priority countries/
assets.
An impact analysis was carried out for owned assets,
which represent a minority share of the total asset portfo-
lio. At the same time, potential risks and possible resilience
solutions are being assessed for business-to-business
and business-to-government customers.
The work on adaptation focused on defining a method-
ology for assessing the vulnerability of Enel X Global Re-
tail assets by extending the studies developed by Enel
Green Power and Thermal Generation and Enel Grids for
the assessment and management of acute meteorolog-
ical events for solar (Distributed Energy PV), storage and
public lighting.
For solar, a preliminary climate risk screening was car-
ried out in the countries/assets identified as priorities
for material acute events such as extreme winds, heavy
rainfall/floods and fire risk. For this technology, the work
performed, considering both the results obtained thanks
to the preliminary screening and more detailed analyses,
does not currently reveal any critical issues related to cli-
mate change. The analysis will be extended to sites where
new construction is planned. For storage, the work carried
out so far finds no critical issues associated with acute cli-
matic events. Finally, the acute phenomena relevant to the
public lighting segment are under study.
118 Integrated Annual Report 2023
Introduction of nature-based solutions to
Enel X Global Retail’s resilience actions
Attention to the effects of climate change is
implemented by Enel X Global Retail in both extra-
urban and urban spaces with an approach to the
challenges of sustainable development inspired
and supported by nature. Enel X Global Retail is thus
committed to promoting an approach in which the
services and products of its commercial offer are
integrated with nature-based solutions (NBS), i.e.
techniques and design approaches that use nature
and processes inspired by it to provide integrated
services that enhance the resilience of cities to climate
change, mitigating the microclimate, air quality and
generally improving the quality of life. To promote
NBS, Enel X Global Retail has developed the Enel X
“NBS Biodiversity Handbook” and the Enel X “Urban
Biodiversity Scoring Model”, which make it possible
to integrate NBS solutions in business solutions and
assess their positive impact on the climate, natural
resources and the human experience.
The introduction of NBS solutions in the Enel X Global
Retail product range was rolled out with an extensive
set of recommended scientific indicators (published
in the Enel X “NBS Handbook for Urban Context”) to
measure positive impacts and support customers
in the adoption of these practices recognized
internationally as effective tools for adaptation to acute
climate phenomena. In practice, NBS can be integrated
with Enel X Global Retail’s technological solutions to
provide ecocompatible services to support nature.
These solutions also contribute to the adaptation and
mitigation of climate change and to the improvement
of the quality of life in urban centers.
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
evaluation 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 pre-
viously in the analysis of physical scenarios, incorporat-
ed into indicators such as the Acute Event Risk Index,
and synthetic indicators such as the Climate Risk Index,
integrated into the Open Country Risk model. These
data provide a preliminary 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 evalua-
Competitive environment
tion of how climate change will modify the availability
of renewable sources at the specific site. The section
“Analysis of the impact of chronic climate change on
renewable generation” describes the approach as ap-
plied to the entire generation portfolio;
• 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 ac-
tivity. 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 fu-
ture assets, including all necessary adaptation actions
over the useful life of a project.
The analysis of the competitive environment is one of the
material elements of the analysis of the context in which
the Group operates and defines its business ambitions.
The risks associated with evolutionary developments in
the market are also mitigated by the periodic monitoring
of the comparative performance at an industrial and finan-
cial level of our competitors.
The assessment activity is carried out using a framework
designed to (i) identify the most relevant competitors and
peers; (ii) analyze their results, the main business drivers,
strategic and industrial objectives; and (iii) understand
their current and prospective positioning.
The process of identifying our peer group is periodically
updated to ensure timely collection of information, KPIs
and reporting elements useful for the Group’s positioning
and strategic planning activities.
In particular, a comparative assessment of the strategic
and industrial plans of competitors is particularly relevant
for assessing potential risks deriving from possible chang-
es in the competitive context and, above all, providing
economic and industrial benchmarks to help improve the
Group’s performance.
Risk management
119
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 catalogue, these risks include
the following:
Interest rate
•
• Commodity
• Currency
• Credit and counterparty
• Liquidity
The internal control and risk management system (ICRMS)
provides for the specification of policies that establish the
roles and responsibilities for risk management, monitoring
and control processes, ensuring compliance with the prin-
ciple of organizational separation of units responsible for
operations and those in charge of monitoring and man-
aging risk.
The financial risk governance system also defines a sys-
tem of operating limits at the Group and region/country
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 objec-
tives.
For further information on the management of financial
risks, please see note 49 of the consolidated financial
statements.
Interest rate
Commodity
The Group is exposed to the risk that changes in the level of interest rates could produce unexpected
changes in net financial expense or financial assets and liabilities measured at fair value.
The exposure to interest rate risk derives mainly from the variability of the terms of financing, in the
case of new debt, and from the variability of the cash flows in respect of interest on floating-rate
debt.
The interest rate risk management policy seeks to contain financial expense and its volatility by opti-
mizing 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 pos-
sible adverse financial impacts and, at the same time, to optimize the structure of debt with an ade-
quate degree of flexibility.
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 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.
120 Integrated Annual Report 2023
Currency
Enel has also implemented a formal procedure that provides for the measurement of the residual
commodity risk, the specification of a ceiling for maximum acceptable risk and the implementation
of a hedging strategy using derivatives on regulated markets and over-the-counter (OTC) markets.
The commodity risk control process limits the impact of unexpected changes in market prices on
margins and, at the same time, ensures an adequate margin of flexibility that makes it possible to
seize short-term opportunities.
In order to mitigate the risk of interruptions in the supply of fuel and raw materials, the Group has
diversified fuel sources, using suppliers from different geographical areas.
In 2023, despite the continuing economic strains at the global level owing to the rise in inflation, the
Russia-Ukraine and Israel-Palestinian conflicts and climate change, the prices of energy commodities
and other raw materials gradually declined, although they remain above their pre-pandemic levels.
During the year, the risks recorded by Enel were below the limits set for 2023, which were contained
thanks to careful and timely management and mitigation measures, the geographical diversifica-
tion of our business and supply channels in order to reduce dependence on Russian gas. Finally, the
adoption of global and local strategies, such as flexibility in contractual clauses and proxy hedging
techniques (in the event that hedging derivatives are not available on the market or are not sufficiently
liquid), has made it possible to optimize results even in a highly dynamic market context.
In view of their geographical diversification, access to international markets for the issuance of debt
instruments and transactions in commodities, Group companies are exposed to the risk that changes
in exchange rates between the presentation currency and other currencies could generate unexpected
changes in the performance and financial aggregates in their respective financial statements.
Given the current structure of Enel, the exposure to currency risk is mainly linked to the US dollar and is
attributable to:
• cash flows in respect of the purchase or sale of fuel or electricity;
• cash flows in respect of investments, dividends from foreign subsidiaries or the purchase or sale of
equity investments;
• cash flows connected with commercial relationships;
• financial assets and liabilities.
The possible impacts of exchange rate risk are reflected in:
• costs and revenue denominated in foreign currencies with respect to the time at which pricing con-
ditions 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 financial
impacts and, at the same time, to optimize the management of cash flows on the managed portfolios.
During the year, currency risk was managed through compliance with the risk management policies,
encountering no difficulties in accessing the derivatives market.
Credit and
counterparty
The Group’s commercial commodity and financial transactions expose it to credit risk, i.e. the pos-
sibility that a deterioration in the creditworthiness of counterparties or the failure to discharge con-
tractual payment obligations could lead to the interruption of incoming cash flows and an increase in
collection costs (settlement risk) as well as lower revenue flows due to the replacement of the original
transactions with similar transactions negotiated on unfavorable market conditions (replacement
risk). Other risks include the reputational and financial risks associated with 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.
Risk management
121
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 instru-
ments with commodity underlyings (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 com-
modities 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 con-
tained within sustainable levels. At the same time, this approach preserves the necessary flexibility to
optimize portfolio management.
In addition, the Group undertakes transactions to factor receivables without recourse, which 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.
During the year, after a temporary deterioration in the collection status of certain customer seg-
ments, the situation was restored to the conditions registered the previous year. The Group’s portfolio
has so far demonstrated resilience to the macroeconomic context and current price scenario. This
reflects the expansion of digital collection channels and a solid diversification of the customer base.
Liquidity
Liquidity risk is the risk that the Group, while solvent, would not be able to discharge its obligations in a
timely manner or would only be able to do so on unfavorable terms or in the presence of constraints on
disinvestment from assets with consequent capital losses, owing to situations of tension or systemic
crises (credit crunches, sovereign debt crises, etc.) or changes in the perception of Group riskiness by
the market.
Enel’s liquidity risk management policy is designed to maintain sufficient liquidity to meet expected com-
mitments over a given time horizon without resorting to additional sources of financing, also retaining
a prudential liquidity reserve, sufficient to meet any unexpected commitments. Furthermore, in order to
meet its medium- and long-term commitments, Enel pursues a borrowing strategy that provides for a
diversified structure of funding sources, which it uses to meet its financial needs, and a balanced matu-
rity profile.
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 ac-
cess 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 2023, Enel’s risk profile changed compared with December 2022 for Standard & Poor’s, whose rating
went from “BBB+” with a stable outlook to “BBB” with a stable outlook, and for Moody’s, whose rating
went from “Baa1” with a stable outlook to “Baa1” with a negative outlook. Fitch maintained its rating at
“BBB+” with a stable outlook.
In order to manage liquidity efficiently, treasury activities have largely been centralized at the holding
company level, meeting liquidity requirements primarily by drawing on the cash generated by ordinary
operations and managing any cash surpluses appropriately.
With regard to the increase in gas prices in 2022 following the Russia-Ukraine conflict and the associ-
ated sanctions imposed by the European Union on Russia, which had a major impact on the margins on
commodity derivatives, in 2023, liquidity used for margin requirements decreased considerably despite
the continuation of the war and the sanctions. At the end of the year, the liquidity risk index monitored
for the Group was well within the limits set for 2023.
122 Integrated Annual Report 2023
Digital technology risks
The risks discussed in this section are as follows:
Cyber security
• Cyber security
• Digitalization, IT effectiveness and service continuity
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 nor-
mal operations of companies could grind to a halt. Cyber-attacks have evolved dramatically in re-
cent years: their number has grown exponentially, as has their complexity and impact. In the case
of the Enel Group, this exposure reflects the many environments in which it operates (data, indus-
try and people), a circumstance that accompanies the intrinsic complexity and interconnection of
the digital resources that over the years have been increasingly integrated into the Group’s daily
operating processes. In this context, it is clear that cyber risk must be managed promptly and in
an integrated manner. In short, technological transformation could not exist without paying great
attention to cyber security.
To manage cyber risk, the Group has developed a Cyber Security operating model and a related
framework of processes. Specifically, the operating model defines roles and responsibilities for
the implementation of the framework processes, establishing an ad hoc unit headed by the CISO
(Chief Information Security Officer) and integrated into the Group’s business areas. In addition, the
Group has designed and adopted a framework of holistic processes to manage cyber-security
issues that is applied to all the sectors of IT (Information Technology), OT (Operational Technology)
and IoT (Internet of Things). The framework sets out a governance model based on the commitment
of top management, on global strategic management, on the involvement of all business areas as
well as of the units involved in the implementation of our IT, OT and IoT systems, constituting a solid
foundation for the full merger of technologies, processes and people. The framework is based on
two essential pillars: a “risk-based approach” and “cyber security by design”. The former establish-
es that risk assessment is the prerequisite for strategic decisions and the development and safe
maintenance of all assets within the organization; the latter ensures the adoption of cyber secu-
rity principles from the beginning and throughout the entire life cycle of solutions, services and
infrastructures in all areas, i.e. IT, OT and IoT. In applying the framework, a cyber risk management
approach has been defined, applicable to all IT, OT and IoT environments. It comprises all the phases
necessary to perform risk analysis and define related mitigation plans, consistent with the estab-
lished cyber-security objectives. To balance the advantages of using IT/OT/IoT systems against the
risk that they may engender, well-informed risk-based decisions are essential.
Enel has also created its own Cyber Emergency Readiness Team (CERT) in order to proactively re-
spond to any IT security incidents.
In order to measure the possible financial impact of cyber risks and manage them more effectively,
Enel has developed a Cyber Value-at-Risk (“Cyber V@R Enel Group©”) methodology, which is being
evolved as a metric to calculate Value-at-Risk in various attack scenarios.
Risk management
123
Digitalization, IT
effectiveness and
service continuity
The Group is carrying out a complete digital transformation of how it manages the entire energy value
chain, developing new business models and digitizing its business processes, integrating systems
and adopting new technologies. A consequence of this digital transformation is that the Group is
increasingly exposed to risks related to the functioning of the IT systems, which are integrated across
the Company with impacts on processes and operations, which could expose IT and OT systems to
service interruptions or data losses.
These risks are managed using a series of internal measures developed by the Group to guide the
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 mea-
sures and service interruptions. The internal control system oversees both the activities performed
in-house and those outsourced to external associates and service providers. Furthermore, Enel is
promoting the dissemination of a digital culture and digital skills within the Group in order to success-
fully guide the digital transformation and minimize 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
Generating a strong and sustainable safety culture shared
by all members of the organization is a strategic objective.
For this reason, Enel is committed to developing increas-
ingly sound and safe processes, conditions and working
environments for its employees, for the companies that
work with it, for its customers and for all the other com-
munities with which it interacts every day, promoting ded-
icated training courses as well.
The main health and safety risks to which the employees
of Enel and its contractors are exposed are attributable to
performing operational activities at the Group’s sites and
assets. These risks may vary or even change depending
on economic and social trends, as well as the introduction
of digitalization into operational processes and activities.
Another type of health and safety risk is connected with
non-compliance with applicable laws and regulations. This
can impact on health and safety and lead to administrative
or judicial penalties, and thus produce financial and repu-
tational impacts on the Enel Group.
ant with the international UNI ISO 45001 standard, which
also considers the rigor employed in the selection and
management of contractors and suppliers. The manage-
ment system is based on the identification of threats, the
qualitative and quantitative assessment of risks, including
financial and reputational risks, the planning and imple-
mentation of prevention and protection measures, the
verification of the effectiveness of such measures and any
corrective actions. These systems make it possible to en-
sure regulatory compliance, to verify the effectiveness of
processes and related remedial actions and, finally, to en-
sure the dissemination of a “risk-based” approach as well
as a robust organizational and individual culture in health
and safety issues. The key documentation of these sys-
tems is represented by the Group’s Health and Safety Pol-
icy, developed in cooperation with the Board of Directors
and signed by the CEO. It sets out the guiding principles,
strategic objectives, approach and action lines and priori-
ties for continuous improvement of workplace health and
safety performance.
For this reason, each Group business line had adopted
its own Health and Safety Management System compli-
From an operational standpoint, health and safety risks are
assessed specifically for each site or asset on the basis of
124 Integrated Annual Report 2023
the activities performed by workers and external environ-
mental conditions. This assessment enables us to identi-
fy prevention and protection measures for safety in the
workplace and to plan their implementation, improvement
and control in order to verify their effectiveness and effi-
ciency. At Group level, an analysis of events in the last three
years shows that, in terms of probability of occurrence,
mechanical incidents (falls, collisions, crushing and cuts)
are the most common, while the most severe in terms of
potential associated impact are electrical incidents, which
may involve fatalities, life changing accidents or high-po-
tential incidents, the latter of which differ from fatal and
life changing events only in their outcome for the worker
but not their dynamics.
Enel uses an inspection process to conduct the contin-
uous monitoring of behavior and compliance with pro-
cedures and work methods in the field to ensure the ef-
fective management of risks to the workplace health and
safety of both internal staff and external contractors. The
process is managed both by internal staff and certified
third-party companies and is designed to identify risk sit-
uations (non-compliance) and the related plans containing
remedial actions, including training courses, coaching and
dissemination of the safety culture.
As regards contractors specifically, Enel’s approach is to
consider them as partners in embracing the key princi-
ples of health and safety for its workers, who are there-
fore considered on a par with internal employees in the
application of these principles and in their attention to
workplace health and safety issues. Therefore, safety is
integrated into the procurement process, and contractor
performance is monitored both in the preliminary phase,
using the qualification system, and in the contract exe-
cution phase, through numerous control processes and
tools such as the Contractor Assessment (analyses of
Environment
contractors in the qualification phase or in cases where
critical issues or low scores emerge in the evaluation of
the indicators) or the Evaluation Groups (periodic inter-
functional meetings conducted across all global busi-
ness lines and geographical areas in order to evaluate the
safety performance of suppliers and decide consequence
management actions).
In addition to procedural and operational aspects, another
important driver in the correct management of health and
safety risks is linked to training, awareness and informa-
tion activities. To encourage the growth of technical skills
and a safety culture, supporting change processes and
responding in a timely manner to the needs that emerge
from the business, the Enel Group has developed a struc-
tured training management process, which is designed to
transform knowledge into skills and therefore into behav-
ior.
Enel also fosters the systematic dissemination of informa-
tion and awareness among personnel through a variety of
company channels, such as news on the intranet, infor-
mation emails, newsletters and magazines. We periodically
conduct surveys to collect feedback from our people on
process improvement and undertake communication ini-
tiatives to raise awareness among all workers about the
observance of safety procedures and to create moments
of collective reflection on the dynamics and causes of se-
rious or fatal accidents.
Finally, Enel is also constantly engaged in dialogue with in-
ternational top players in the energy sector and beyond,
through participation in inter-company working groups to
ensure continuous improvement by sharing best practices
in the health and safety field, examining both operational
processes and innovative initiatives.
Over the past few years, society has acquired a growing
awareness of the risks deriving from development models
that generate impacts on the environment and ecosys-
tems, with a particular emphasis on global warming and
ever-increasing exploitation and degradation of water
resources. These impacts have triggered increased con-
cern for environmental quality and ecosystem health, with
greater awareness of the associated risks.
An analysis of environmental risks connected with Enel’s
activities was conducted using an integrated and multi-
functional approach, based on the results of the materiali-
ty analysis for impacts and dependencies. The assessment
helped identify the main operational and financial risks as-
sociated with the environmental and social impacts of the
various activities and technologies involved in our busi-
ness, including the impact of the occupation of land and
the transformation of ecosystems, the depletion of natu-
ral resources, including the impact of water scarcity, and
the pollution of environmental matrices.
In addition to operational risks, the assessment also re-
garded reputational and transitional risks resulting from
possible changes to the regulatory, technological or mar-
ket framework and the associated opportunities.
Enel is committed to the prevention and minimization of
environmental impacts and risks in all its operations and
over the entire life cycle of projects. The adoption of ISO
14001-certified environmental management systems
across the entire Group ensures the implementation of
Risk management
125
structured policies and procedures to identify and man-
age environmental risks and opportunities. A structured
control plan combined with improvement actions and
objectives inspired by the best environmental practices
mitigates the potential impacts on the environment and
consequent reputational damage and litigation. Enel has
also undertaken a multitude of actions to achieve chal-
lenging environmental improvement objectives, such as
those regarding atmospheric emissions, waste produc-
tion and water consumption, especially in areas with high
water stress, and impacts on natural habitats and species.
The impact on areas of high water stress is directly miti-
gated by Enel’s development strategy, which is based on
the growth of generation from renewable sources that are
essentially not dependent on the availability of water for
their operation, as well as the adoption of advanced solu-
tions to reduce consumption in traditional thermal plants.
As regards ecosystems, Enel adopts measures to protect
and conserve biodiversity and natural habitats, following
the mitigation hierarchy (avoid, minimize, restore and off-
set) and monitoring the effectiveness of the actions. Col-
laboration with local water basin management authorities
fosters the adoption of shared strategies for the sustain-
able management of hydroelectric generation assets.
Enel also actively participates in the international debate
on nature and biodiversity issues with influential stake-
holders and networks, such as Business for Nature, the
Taskforce on Nature-related Financial Disclosure, the
World Business Council for Sustainable Development and
Science Based Targets for Nature.
Procurement, logistics and supply chain
The purchasing processes of Global Procurement and the
associated governance documents form a structured sys-
tem of rules and control points that make it possible to
combine the achievement of economic business objec-
tives 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 promo-
tion of initiatives for sustainable economic development.
These principles have been incorporated into the organi-
zational processes and controls that Enel has voluntarily
decided to adopt in order to establish relationships of
trust with all its stakeholders, as well as define stable and
constructive relationships that are not based exclusively
on ensuring financial competitiveness but also take ac-
count of best practices in essential areas for the Group,
such as the avoidance of child labor, occupational health
and safety and environmental 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 create a resilient and
sustainable supply chain, calling on all of us to think from
a circular economy perspective and fostering innovation,
sharing the Group’s values and objectives with suppliers
who thereby become enablers of the achievement of
Enel’s targets. More specifically, tenders can incorporate
incentives or mandatory requirements to produce virtu-
ous behavior on the part of our suppliers. These include: 1)
incentives connected with the measurement and reduc-
tion of the carbon footprint of suppliers, which encourage
them to undertake improvements; 2) incentives connect-
ed with social aspects, such as the training and employ-
ment of people belonging to local communities and ac-
tions aimed at respecting gender diversity; 3) mandatory
requirements concerning human rights, which involves
mapping the potential supply chain involved in the supply
of strategic product categories.
From the point of view of the procurement process, the
various units adopt the tender mechanism, thus ensuring
maximum competition and equal access opportunities for
all operators who are in possession of the technical, eco-
nomic/financial and environmental 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 compli-
ance with current legislation on the matter.
Furthermore, the single global supplier qualification sys-
tem for the entire Enel Group, even before the procure-
ment process begins, verifies that potential suppliers
who intend to participate in procurement procedures are
aligned with the Company’s strategic vision and policies.
With regard to the risk governance system, Global Pro-
curement is focused on the application of metrics that
indicate the level of risk before and after the mitigation
action, in order to implement precautionary measures to
reduce uncertainty to a tolerable level or mitigate any im-
pacts in all business, technological and geographical ar-
eas.
The effectiveness of supply chain risk management is
monitored through specific indicators that assess a va-
riety of factors – 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
126 Integrated Annual Report 2023
thresholds have been specified to guide the definition of
the procurement, negotiation and tender award strategy,
enabling informed choices of risk and potential benefit.
In order to counter the consequences of the geopolitical
situation in Ukraine, which has increased market volatili-
ty and further stressed the supply chain, already strained
during the COVID-19 pandemic, during which Enel worked
to differentiate supply sources to avoid interruptions in
the supply chain, Global Procurement constantly moni-
tors activities related to the supply/logistics chain, with
the active participation of our suppliers, through a specific
contractual monitoring obligation, to mitigate the risks as-
sociated with market shortages, logistical issues and busi-
ness interruptions.
People and organization
The profound social, economic, demographic and cultur-
al transformations we are experiencing, from the energy
transition to the processes of digitalization and techno-
logical innovation and the rapid diffusion of artificial intel-
ligence systems, also have a profound effect on the world
of work, renewing its paradigms and imposing major cul-
tural and organizational changes, which require new pro-
fessional qualifications and skills.
In order to deal with change, it is essential to act inclu-
sively, placing the Person at the center in his or her social
and work dimension, with adequate tools to cope with this
epochal transformation.
Organizations are increasingly called upon to move to-
wards new agile and flexible work and business models
that are sustainable along the entire value chain. It is also
essential to adopt policies to enhance the diversity and
talents of each person, understanding that the contribu-
tion of the individual represents an essential element for
the creation of widespread and shared value.
The centrality of the Person, constant listening, sharing,
enhancement of the entrepreneurial capacities of individ-
uals, involvement, are some of the keywords that guide our
way of working and experiencing the Company.
Thanks to an ever more efficient and streamlined organi-
zation and operational simplification, the management of
human capital and the centrality of the Person are playing
a key role in the implementation of the Group’s industri-
al strategy, acting as an enabling factor to which specific
objectives are linked, including: the ongoing development
of skills and competences; the promotion of reskilling and
upskilling for our people (continuous, personalized, flexi-
ble, accessible and transversal) in order to enable each of
us to effect change and be a protagonist with our distinc-
tive contribution to achieving results while guaranteeing
greater satisfaction for people, understood as motivation
and well-being; the development of systems for evaluating
the working environment and performance; the dissemi-
nation and rigorous assessment of the effects of diversity
and inclusion policies in all countries in which the Group
operates, as well as instilling an inclusive organizational
culture based on the principles of non-discrimination and
equal opportunity, key drivers for attracting and retaining
talent.
The Group is involved in enhancing the resilience and
flexibility of organizational models through organization-
al and procedural simplification and the digitalization of
processes in order to enable the autonomy and account-
ability of individuals and teams by strengthening people
empowerment processes and fostering an entrepreneur-
ial approach that values people’s talents, attitudes and as-
pirations. The hybrid working method and the promotion
of internal mobility, as well as the use of innovative and
flexible organizational models, are tools aimed precisely at
supporting this evolution of organizational culture on the
basis of trust and responsibility, proactiveness and entre-
preneurship.
Risk management
127
Compliance risks
The risks discussed in this section are as follows:
• Data protection
Risks connected with the protection of personal data
The Group, which is present in more than 43 countries, has
the largest customer base in the public services sector
(more than 70 million customers), and currently employs
about 61,000 people. Consequently, the Group’s business
model requires the management of an increasingly large
and growing volume of personal data in order to achieve
the financial and business results envisaged in the 2024-
2026 Strategic Plan.
This exposes Enel to the risks connected with the protec-
tion of personal data. These risks may result in the loss of
confidentiality, integrity or availability of the personal in-
formation of our customers, employees and others, with
the risk of incurring fines determined on the basis of glob-
al 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 adopt-
ed a model for the global governance of personal data,
with the appointment of personnel responsible for privacy
issues at all levels (including the appointment of Data Pro-
tection Officers at the global and country levels) and digital
compliance tools to map applications and processes and
manage risks with an impact on protecting personal data,
in compliance with specific local regulations in this field.
128 Integrated Annual Report 2023
Risk management
129
130 Integrated Annual Report 2023
REPORT
ON OPERATIONS
4.
GROUP
PERFORMANCE
● Solid results in 2023, with ordinary EBITDA of €22 billion (+11.6%)
and an ordinary net profit of €6.5 billion (+20.7%)
The increase is mainly attributable to the positive performance of
the integrated businesses and distribution activities, net of changes
in the consolidation scope and Stewardship transactions compared
with the previous year.
● Net financial debt/ordinary EBITDA at about 2.7x (compared with
3.1x at end-2022)
Positive cash flows generated by operations, the sale of a number
of investments no longer considered strategic, the effects of the
issue of perpetual hybrid subordinated non-convertible bonds
and the recognition of investment grants more than offset for
cash requirements of investment in the period and the payment of
dividends.
● A simple, predictable and attractive dividend policy
The total dividend proposed for the 2023 financial year is equal
to €0.43 per share (of which €0.215 per share already paid as an
interim dividend in January 2024), an increase of 7.5% compared
with the total dividend of €0.40 per share paid for the 2022 financial
year.
131
DEFINITION OF
PERFORMANCE
MEASURES
In order to present the performance of the Group and
analyze
its financial structure, separate reclassified
schedules have been prepared that differ from the
schedules envisaged under the IFRS-EU adopted by
the Group and contained in the consolidated financial
statements. These reclassified schedules contain differ-
ent performance measures from those obtained directly
from the consolidated financial statements, in line with
the ESMA Guidelines on Alternative Performance Mea-
sures (ESMA/2015/1415) published on October 5, 2015.
Management believes that these measures are useful in
monitoring the performance of the Group and represen-
tative of the financial performance and position of our
business, ensuring greater comparability over time.
With regard to those measures, on April 29, 2021, CON-
SOB issued warning notice no. 5/2021, which gives force
to the Guidelines issued on March 4, 2021, by the Eu-
ropean Securities and Markets Authority (ESMA) on dis-
closure requirements under Regulation (EU) 2017/1129
(the Prospectus Regulation), which took effect on May
5, 2021 and replace the references to the CESR Recom-
mendations and those contained in Communication no.
DEM/6064293 of July 28, 2006 regarding the net finan-
cial position.
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 Regula-
tion (EU) 2019/980, which were not converted into Guide-
lines and remain applicable.
The Guidelines are intended to promote the usefulness
and transparency of alternative performance measures
included in regulated information or prospectuses within
the scope of application of Directive 2003/71/EC in or-
der to improve their comparability, reliability and com-
prehensibility.
In line with the regulations cited above, the criteria used
to construct these measures for the Enel Group are the
following.
Gross operating profit (EBITDA): an operating perfor-
mance indicator, calculated as the sum of “Operating
profit”, “Net impairment/(reversals of impairment) on
132 Integrated Annual Report 2023
trade receivables and other receivables” and “Deprecia-
tion, amortization and other impairment”.
Ordinary gross operating profit (ordinary EBITDA): de-
fined as “Gross operating profit” from core businesses
connected with the Ownership, Partnership and Stew-
ardship business models with which the Group operates
plus the ordinary gross operating profit of discontinued
operations where present. It does not include costs con-
nected with corporate restructurings and “Extraordinary
solidarity levies” imposed by local foreign governments
on energy companies.
Ordinary operating profit: defined as “Operating profit”
plus the ordinary operating profit of discontinued op-
erations, excluding the effects of transactions not con-
nected with core operations referred to with regard to
ordinary gross operating profit. It also excludes signifi-
cant impairment losses (including reversals of impair-
ment losses) on assets and/or groups of assets follow-
ing an assessment of the recoverability of their carrying
amount under the provisions of “IAS 36 - Impairment of
assets” or “IFRS 5 - Non-current assets held for sale and
discontinued operations”.
Group ordinary profit: it is determined by adjusting
“Group profit” for the items discussed under “Ordinary
operating profit”, taking account of any tax effects and
non-controlling interests.
Also excluded are a number of financial components not
strictly attributable to the Group’s core business oper-
ations and the extraordinary solidarity levy imposed on
energy companies in Italy.
Net non-current assets: calculated as the difference be-
tween “Non-current assets” and “Non-current liabilities”
with the exception of:
• “Deferred tax assets”;
• “Other non-current financial assets included in net fi-
nancial debt” included in “Other non-current financial
assets”;
• “Long-term borrowings”;
• “Employee benefits”;
• “Provisions for risks and charges (non-current portion)”;
• “Deferred tax liabilities”;
• “Other non-current financial liabilities”.
Net working capital: calculated as the difference between
“Current assets” and “Current liabilities” with the excep-
tion of:
• “Current financial assets included in net financial debt”
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 current financial liabilities included in net finan-
cial debt” included in “Other current financial liabili-
ties”.
Net assets held for sale: calculated as the algebraic sum
of “Assets classified as held for sale” and “Liabilities in-
cluded in disposal groups classified as held for sale”.
Net capital employed: calculated as the sum of “Net
non-current assets” and “Net working capital”, “Provi-
sions for risks and charges”, “Employee benefits”, “De-
ferred tax liabilities” and “Deferred 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”,
“Current portion of long-term borrowings”, “Other
non-current financial liabilities” and “Other current fi-
nancial liabilities included in net financial debt” includ-
ed in “Other current financial liabilities”;
• net of “Cash and cash equivalents”;
• net of “Current financial assets included in net finan-
cial debt” included in “Other current financial assets”,
which include: (i) the current portion of long-term loan
assets, (ii) securities, (iii) loan assets and (iv) other cur-
rent financial assets;
• net of “Non-current financial assets included in net
financial debt” included in “Other non-current finan-
cial assets”, which include (i) securities and (ii) financial
assets.
More generally, the net financial debt of the Enel Group
is reported in accordance with Guideline 39, issued on
March 4, 2021 by ESMA, applicable as from May 5, 2021,
and with the above warning notice no. 5/2021 issued by
CONSOB on April 29, 2021.
A reconciliation of the Group’s financial debt as deter-
mined with the criteria indicated above and the finan-
cial debt determined in accordance with the criteria of
CONSOB Communication no. DEM/6064293 of July 28,
2006 is reported in note 47 to the consolidated financial
statements.
Main changes in the consolidation scope
In the two periods under review, the consolidation scope
changed. For more information, please see note 9 “Main
acquisitions and disposals in the year” of the consolidated
financial statements.
Definition of performance measures
133
134 Integrated Annual Report 2023
PERFORMANCE
OF THE GROUP
207.33 TWh
NET ELECTRICITY GENERATION(1)
of which 126.98 TWh of renewable
generation
45.2 million
END USERS WITH ACTIVE
SMART METERS
68.2%
NET EFFICIENT INSTALLED
RENEWABLES CAPACITY
digitalized end users equal to 64.3%
for a total of 55.5 GW
1.9 million km
ELECTRICITY
DISTRIBUTION AND
TRANSMISSION GRID
61.1 million
RETAIL
CUSTOMERS
of which 24.3 million on the free
market
24,281 no.
PUBLIC CHARGING
POINTS(2)
+20.1% on 2022(3)
(1)
(2)
If net generation operated through joint ventures were also included, total generation at December 31, 2023 would amount to 220.6 TWh; similarly, gener-
ation from renewable sources would be equal to 140.3 TWh at December 31, 2023 (123.7 TWh at December 31, 2022).
If the figures also included charging points operated through joint ventures, the totals would amount to 25,337 at December 31, 2023 and 22,617 at De-
cember 31, 2022.
(3) The figure for 2022 reflects a more accurate calculation of the aggregate.
The following is a description of the Group’s operating and
environmental performance.
Operations
SDG
7
7
7
7
9
9
9
Net electricity generation (TWh)(1)
of which:
- renewable (TWh)(1)
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)
End users with active smart meters (no.)(3)
Electricity distribution and transmission grid (km)
End users (no.)
Electricity sold by Enel (TWh)
Gas sold to end users (billions of m3)
Retail customers (no.)
- of which free market
11
11
11
Demand response capacity (MW)
Public charging points (no.)(4)
Storage (MW)
2023
207.33
126.98
81.4
55.5
68.2%
4.03
489.2
45,172,959
1,899,419
70,291,727
300.9
8.3
61,118,024
24,320,725
9,588
24,281
1,730
2022
227.77
112.45
84.6
53.6
63.3%
4.96
507.5(2)
45,824,963
2,024,038
72,655,170
321.1
10.2
66,784,895
27,864,392
8,476
22,112(2)
760
Change
(20.44)
14.53
(3.2)
1.9
4.9%
(0.93)
(18.3)
(652,004)
(124,619)
(2,363,443)
(20.2)
(1.9)
(5,666,871)
(3,543,667)
1,112
2,169
970
(1)
If net generation operated through joint ventures were also included, total generation at December 31, 2023 would amount to 220.6 TWh; similarly, gener-
ation from renewable sources would be equal to 140.3 TWh at December 31, 2023 (123.7 TWh at December 31, 2022).
(2) The figure for 2022 reflects a more accurate calculation of the aggregate.
(3) Of which 28.7 million second-generation smart meters in 2023 and 25.2 million in 2022.
(4)
If the figures also included charging points operated through joint ventures, the totals would amount to 25,337 at December 31, 2023 and 22,617 at De-
cember 31, 2022.
Performance of the Group
135
Net electricity generated by Enel in 2023 decreased by
20.44 TWh compared with 2022, the result of lower ther-
mal generation (-34.97 TWh) essentially due to a reduction
in quantities generated by fuel oil and turbo-gas plants
(-6.63 TWh) and combined-cycle plants (-17.73 TWh), tak-
ing into account the divestment of operations in Russia,
Argentina (Enel Generación Costanera and Central Sud
Dock) and Brazil (Central Geradora Termelétrica Fortaleza
- CGTF), as well as the decrease in coal generation (-8.97
TWh), mainly in Italy.
The increase in generation from renewable sources (14.53
TWh) is essentially attributable to greater hydroelectric
generation (9.26 TWh), which benefited from greater wa-
ter availability in several countries, and to solar generation
(3.30 TWh), mainly in Chile, the United States and Iberia.
NET ELECTRICITY GENERATION BY SOURCE (2023)
2023
2023
Total 207.33 TWh
Total 207.33 TWh
227.77 TWh in 2022
227.77 TWh in 2022
TOTAL RENEWABLE SOURCES:
TOTAL RENEWABLE SOURCES:
61.2%
61.2%
49.4% in 2022
49.4% in 2022
TOTAL TRADITIONAL SOURCES:
TOTAL TRADITIONAL SOURCES:
38.8%
38.8%
50.6% in 2022
50.6% in 2022
At the end of December 2023, the Group’s net efficient
installed capacity totaled 81.4 GW, a decrease of 3.2 GW
from 2022.
As mentioned in relation to electricity generation, the re-
duction in net efficient generation capacity is also main-
ly attributable to the sale of thermal generation assets in
Argentina. However, this decrease was mitigated by the
increase in net efficient renewables capacity (+1.9 GW)
as a result of renewable energy investments made by the
Group during the year (+4.03 GW), which was partly offset
by plant disposals in Romania, Greece, Australia, Chile and
India.
NET EFFICIENT INSTALLED CAPACITY BY SOURCE (2023)
2023
2023
Total 81.4 GW
Total 81.4 GW
84.6 GW in 2022
84.6 GW in 2022
TOTAL RENEWABLE SOURCES:
TOTAL RENEWABLE SOURCES:
68.2%
68.2%
63.3% in 2022
63.3% in 2022
TOTAL TRADITIONAL SOURCES:
TOTAL TRADITIONAL SOURCES:
31.8%
31.8%
36.7% in 2022
36.7% in 2022
136 Integrated Annual Report 2023
34.8%Hydroelectric33.5% in 202219.5%Wind18.6% in 202212.8%Solar10.1% in 20221.1%Geothermal and other1.1% in 202214.7%Combined-cycle16.5% in 20227.3%Fuel oil and turbo-gas8.5% in 20225.7%Coal7.8% in 20224.1%Nuclear3.9% in 202229.4%Hydroelectric22.7% in 202221.9%Wind19.0% in 20227.0%Solar5.0% in 20222.9%Geothermal and other2.7% in 202217.7%Combined-cycle23.9% in 202212.0%Nuclear11.6% in 20225.2%Coal8.7% in 20223.9%Fuel oil and turbo-gas6.4% in 202234.8%Hydroelectric33.5% in 202219.5%Wind18.6% in 202212.8%Solar10.1% in 20221.1%Geothermal and other1.1% in 202214.7%Combined-cycle16.5% in 20227.3%Fuel oil and turbo-gas8.5% in 20225.7%Coal7.8% in 20224.1%Nuclear3.9% in 202229.4%Hydroelectric22.7% in 202221.9%Wind19.0% in 20227.0%Solar5.0% in 20222.9%Geothermal and other2.7% in 202217.7%Combined-cycle23.9% in 202212.0%Nuclear11.6% in 20225.2%Coal8.7% in 20223.9%Fuel oil and turbo-gas6.4% in 2022 At the end of December 2023, the Group’s net efficient in-
stalled renewables capacity reached 55.5 GW, an increase
of 1.9 GW compared with 2022, and represents 68.2% of
total net efficient installed capacity.
Electricity distribution and access,
ecosystems and platforms
Electricity transported on Enel’s distribution grid
TWh
SAIDI
SAIFI
End users with active smart meters (no.)(2)
Digital end users
Electricity sold by Enel
- of which free market
Retail customers
- of which free market
Natural gas sales
Public charging points(3)
Demand response capacity
Storage
2023
489.2
217.6
2.5
2022
507.5(1)
230.5(1)
2.6
Change
(18.3)
(12.9)
(0.1)
45,172,959
45,824,963
(652,004)
64.3
63.1
1.2
300.9
194.5
321.1
198.3
(20.2)
(3.8)
61,118,024
66,784,895
(5,666,871)
24,320,725
27,864,392
(3,543,667)
average minutes
average no.
no.
%
TWh
TWh
no.
no.
millions of m3
8,324
10,243
(1,919)
no.
MW
MW
24,281
9,588
1,730
22,112
8,476
760
2,169
1,112
970
-3.6%
-5.6%
-3.8%
-1.4%
1.9%
-6.3%
-1.9%
-8.5%
-12.7%
-18.7%
9.8%
13.1%
-
(1) The figure for 2022 reflects a more accurate calculation of the aggregate.
(2) Of which 28.7 million second-generation smart meters in 2023 and 25.2 million in 2022.
(3)
It should be noted that the figures shown, if they also included the charging points of the companies managed in joint ventures, would amount to 25,337
at December 31, 2023, and 22,617 at December 31, 2022.
Electricity transported on Enel’s distribution grid
amounted to 489.2 TWh in 2023, a decrease of 18.5 TWh
(-3.6%) compared with the previous year, mainly attribut-
able to Brazil (-11.6 TWh), especially for the sale of Celg
Distribução SA - Celg-D (Enel Goiás) at the end of 2022, as
well as the decrease in quantities in Italy (-6.3 TWh), Chile
(-3.1 TWh) and Romania (-3.0 TWh) due to the changes in
the consolidation scope. These effects were slightly offset
by increases in Spain (+4.7 TWh).
The number of Enel end users with active smart meters
decreased by 652,004 in 2023 due to the deconsolida-
tion of operations in Romania (a decrease of 1,285,969).
These effects were partially offset by increases in Brazil
(+412,667), Italy (+129,439) and Spain (+87,218).
Electricity sold by Enel in 2023 came to 300.9 TWh, de-
creasing by 20.2 TWh (-6.3%) compared with the previous
year.
The decrease in the volumes of electricity sold in 2023
was mainly concentrated on the regulated market in Brazil
(-9.7 TWh), as a result of the sale of Enel Goiás, and in Italy
(-6.8 TWh) with the ongoing transition of customers to the
free market, due in part to the pending elimination of the
enhanced-protection market set for June 2024.
With regard to the free market, volume decreases were
seen mainly in Italy (-3.1 TWh) and Spain (-0.6 TWh), partially
offset by increases in Brazil (+2.2 TWh) and Chile (+0.6 TWh).
In addition, natural gas sales in 2023 amounted to 8,324
million cubic meters, down 1,919 million cubic meters
compared with the previous year, mainly in Spain (down
1,107 million cubic meters) and in Italy (down 577 million
cubic meters).
Active public charging points for electric cars at De-
cember 31, 2023 numbered 24,281, an increase of 2,169
compared with 2022, mainly in Spain (+1,824) and in Italy
(+846).
Demand response capacity in 2023 amounted to 9,588
MW, an increase of 1,112 MW compared with the previous
year, mainly in Japan (+494 MW), North America (+273 MW)
and Italy (+256 MW).
Finally, storage at December 31, 2023 amounted to 1,730
MW, an increase of 970 MW due mainly to the installation
of new batteries at renewable energy plants (+931 MW),
mainly in North America (+736 MW) and Italy (+159 MW).
Performance of the Group
137
2023
Total 207.33 TWh
227.77 TWh in 2022
TOTAL RENEWABLE SOURCES:
TOTAL TRADITIONAL SOURCES:
61.2%
38.8%
49.4% in 2022
50.6% in 2022
2023
Total 81.4 GW
84.6 GW in 2022
TOTAL RENEWABLE SOURCES:
TOTAL TRADITIONAL SOURCES:
68.2%
31.8%
63.3% in 2022
36.7% in 2022
34.8%Hydroelectric33.5% in 202219.5%Wind18.6% in 202212.8%Solar10.1% in 20221.1%Geothermal and other1.1% in 202214.7%Combined-cycle16.5% in 20227.3%Fuel oil and turbo-gas8.5% in 20225.7%Coal7.8% in 20224.1%Nuclear3.9% in 202229.4%Hydroelectric22.7% in 202221.9%Wind19.0% in 20227.0%Solar5.0% in 20222.9%Geothermal and other2.7% in 202217.7%Combined-cycle23.9% in 202212.0%Nuclear11.6% in 20225.2%Coal8.7% in 20223.9%Fuel oil and turbo-gas6.4% in 2022 Fighting climate change and ensuring
environmental sustainability
35.4 million m3
73.2%
TOTAL WATER CONSUMPTION
ZERO-EMISSIONS GENERATION
-21.7% on 2022
(% of total)
€17,982 million
€12,837 million
ORDINARY EBITDA FROM LOW-CARBON
PRODUCTS, SERVICES AND TECHNOLOGIES(1)
CAPITAL EXPENDITURE ON LOW-CARBON
PRODUCTS, SERVICES AND TECHNOLOGIES
(1) Ordinary EBITDA for low-carbon products, services and technologies represents the ordinary gross operating margin of the low-carbon products,
services and technologies included in the following business lines: Enel Green Power, Enel Grids, Enel X and End-user Markets (excluding gas).
Main climate change indicators
Direct greenhouse gas emissions - Scope 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(2)
- of which emissions connected with gas sales(2)
Intensity of Scope 1 GHG emissions related to power generation(3)
Intensity of Scope 1 and Scope 3 GHG emissions related to Integrated Power(4)
Specific emissions of SO2
Specific emissions of NOx
Specific emissions of particulates
Zero-emission generation as percentage of total
Total direct fuel consumption
Average efficiency of thermal plants(5)
Water withdrawals in water-stressed areas
Total specific withdrawals of fresh water
Reference price of CO2
Ordinary EBITDA from low-carbon products, services and technologies(6)
MtCO2eq
MtCO2eq
MtCO2eq
MtCO2eq
MtCO2eq
gCO2eq/kWh
gCO2eq/kWh
g/kWheq
g/kWheq
g/kWheq
%
Mtoe
%
%
l/kWh
€/ton
2023
34.51
3.28
4.51
56.53
16.79
160
168
0.09
0.26
2022
53.07
3.82
5.10
71.04
20.63
229
210
0.07
0.32
0.006
0.005
73.2
19.3
42.0
23.3
0.20
71
61.0
26.5
42.8
19.3
0.23
86
Change
(18.56)
-35.0%
(0.54)
(0.59)
(14.51)
(3.84)
(69)
(42)
0.02
(0.06)
0.001
12.2
(7.2)
(0.8)
4.0
-14.1%
-11.6%
-20.4%
-18.6%
-30.1%
-20.0%
28.6%
-18.8%
20.0%
20.0%
-27.2%
-1.9%
20.7%
(0.03)
-13.0%
(15)
-17.4%
29.4%
-3.8%
2.7%
Capital expenditure on low-carbon products, services and technologies
millions of €
12,837
13,351
Ratio of capex for low-carbon products, services and technologies to total
%
94.6
92.1
(514)
2.5
millions of €
17,982
13,900
4,082
(1) The figure for 2022 has been adjusted to reflect an update in the methodology for calculating energy consumption in distribution assets and an update of
the emission factors of national electricity systems.
(2) The figure for 2022 has been adjusted to reflect an update in the calculation methodology based on the calorific value of natural gas sold to end users and
an update of the emission factors of national electricity systems.
(3) KPI corresponding to the target certified by the SBTi in 2022, calculated considering direct emissions (Scope 1) from electricity generation compared with
total renewable, nuclear and thermoelectric generation, excluding pumped production. The figure for 2022 has been adjusted to reflect an update of the
emission factors of national electricity systems.
(4) KPI corresponding to the target certified by the SBTi in 2022, calculated considering direct emissions (Scope 1) from electricity generation and indirect
emissions from the purchase of electricity for sale to end users (Scope 3) as a ratio to the total of renewable, nuclear and thermoelectric production, ex-
cluding pumped production, and also electricity purchased.
(5) The calculation does not consider Italian O&G plants being decommissioned or of marginal impact. Average efficiency is calculated on the basis of the plant
fleet and is weighted by generation.
(6) Ordinary EBITDA for low-carbon products, services and technologies represents the ordinary gross operating margin of the low-carbon products, services
and technologies included in the following business lines: Enel Green Power, Enel Grids, Enel X and End-user Markets (excluding gas).
138 Integrated Annual Report 2023
In 2023, total direct and indirect emissions (i.e. Scopes 1,
2 and 3) amounted to 94.3 MtCO2eq, an all-time low, re-
versing the rising trend seen in 2021 and 2022 following
the global energy crisis. More specifically, total emissions
decreased by 26.3% compared with 2022 (127.9 MtCO2eq).
This was mainly due to an overall improvement in the main
operational performance measures, which have helped to
reduce direct and indirect emissions throughout the en-
tire value chain, including a 38% reduction in thermal gen-
eration due to lower coal and CCGT generation in Italy and
Iberia and the sale of thermal plants in Russia in 2022 and
in Argentina in 2023, the 19% volume reduction in natural
gas sold to end users, and the 24% reduction in the ratio of
greenhouse gas emissions to supply chain spending com-
pared with 2022. In addition, the digitalization and auto-
mation of electricity grids have also helped to reduce grid
losses and enable the development of renewables, there-
by playing a key role in the Group’s decarbonization efforts,
as well as in the decarbonization of the energy systems in
which the Group operates.
Scope 1 GHG emissions amounted to 34.51 MtCO2eq in
2023, representing 36.6% of total GHG emissions, down
35% compared with the 53.07 MtCO2eq of 2022. Of the
total, 94.9% of these emissions are linked to the process
of burning fuels for electricity generation, which has ben-
efited from the reduction in thermal generation and the
increase in generation from renewable sources.
Electricity generated by Enel in 2023 from zero-emission
sources amounted to 73.2% of total generation, increas-
ing considerably from the 61.0% registered in 2022 due
mainly to an increase in the contribution of hydroelectric
and solar generation.
Our constant commitment to improving air quality in the
areas where Enel operates is underscored by the atten-
tion paid to reducing emissions of the main air pollutants
associated with thermal generation, namely sulfur dioxide
(SO2), nitrogen oxides (NOx), and particulates.
In 2023, there was a decrease in NOx emissions compared
with 2022, in both absolute and specific terms, linked to
the concomitant lower overall generation by gas and CCGT
plants in Italy and Iberia and to the sale of plants in Ar-
gentina. SO2 and particulate emissions, on the other hand,
have increased compared with last year as a consequence
of the increased coal generation in Latin America (Colom-
bia), which is normally inactive, due to specific generation
needs resulting from intense drought associated with the
effects of El Niño, which caused a significant alteration of
the balance of rainfall. More specifically, specific emissions
of SO2 were equal to 0.09 g/kWheq (+28.6% compared with
the 2022 value of 0.07 g/kWheq), with NOx at 0.26 g/kWheq
(-18.8% compared with the 2022 value of 0.32 g/kWheq)
and particulates at 0.006 g/kWheq (+20.0% compared with
the 2022 value of 0.005 g/kWheq).
Protection and development of natural capital
The protection of natural capital and combating climate
change are strategic factors that are integrated into plan-
ning and in business management and development, so as
to promote the sustainable economic development of the
communities in which the Group operates, and are decid-
ing factors in consolidating the Enel’s leadership in energy
markets.
As an energy company, our operations depend on natural
resources but, at the same time, have an impact on those
resources. This is why Enel integrates assessments of risks
and opportunities into Group governance and into our de-
cision-making processes in line with international frame-
works by setting specific targets over time.
The decarbonization of our energy mix, along with our ob-
jectives to reduce our impact on nature, to reclaim habi-
tats, and to share the benefits of ecosystem services with
our communities, are cornerstones of Enel’s sustainability
strategy.
Performance of the Group
139
Responsible water resource management
Total withdrawals
Water withdrawals in water-stressed areas
Total specific withdrawals of fresh water
Total water consumption
Water consumption in water-stressed areas
millions of m3
%
l/kWheq
millions of m3
%
2023
55.0
23.3
0.20
35.4
22.1
2022
76
19.3
0.23
45.2
20.5
Change
(21.0)
4.0
(0.03)
(9.8)
1.6
-27.6%
20.7%
-13.0%
-21.7%
7.8%
The water needed in electricity generation is obtained from
“non-scarce” sources (i.e. seawater used as-is in open-cy-
cle cooling processes or undergoing desalination to obtain
demineralized and industrial water) and, only where neces-
sary, from scarce sources (surface, underground and civ-
il-use fresh water). In 2023, there was a significant reduc-
tion in total water withdrawals (-27.6% from 76 million cubic
meters in 2022 to 55 million cubic meters in 2023) due to
lower thermal generation in Italy, Iberia and Latin America
and nuclear generation in Spain, which corresponds to a
13% reduction in total specific withdrawals of fresh water
(0.20 l/kWheq in 2023 compared with 0.23 l/kWheq in 2022).
This decrease was also seen for withdrawals of fresh wa-
ter in water-stressed areas,(38) from 12.4 x103 million liters in
2022 to 10.3 x103 million liters (-17%), although less severe
than the reduction recorded in total withdrawals, with an in-
crease in the relative percentage of water withdrawn from
water-stressed areas out of the total (+20.7%, from 19.3% in
2022 to 23.3% in 2023).
About 11.6% of total electricity generated by the Enel
Group used fresh water in water-stressed areas, deriving
mainly from thermal and nuclear plants.
Enel’s commitment to biodiversity
Enel has extensive experience managing and preserving
biodiversity in and around our production sites in an ev-
er-increasing number of countries. In 2019, Enel adopted
Group guidelines that establish the principles and proce-
dures for managing our impact on biodiversity and eco-
system services (BES) throughout the entire life cycle of
our plants, from development and operations to decom-
missioning.
The identification of potential impacts on biodiversity and
nature is essential in order to define the most effective
strategies to avoid, minimize, remedy or compensate for
the associated effects, through application of the Mitiga-
tion Hierarchy. In the same way, identifying all that depends
on biodiversity and natural capital enables us to identify
the best strategies to reduce any consequent risks.
In 2023, we pursued 183 projects to safeguard species
and natural habitats in and around operational plants, 57
of which were developed in partnership with government,
non-governmental organizations, and universities, for a
total investment of €10.8 million. These projects were car-
ried out throughout the world.
Also in 2023, we carried out a further 60 projects related
to plants under construction, mainly in Brazil, Chile, Co-
lombia, Italy and Spain, aimed at protecting and monitor-
ing the indigenous species affected, for a total investment
of over €9 million.
(38) Mapped in line with GRI criteria in relation to the “(baseline) water stress” conditions specified in the World Resources Institute Aqueduct Water Risk Atlas.
140 Integrated Annual Report 2023
Group performance
€20,255 million
€10,832 million
€3,438 million
GROSS OPERATING
PROFIT
€19,918 million in 2022
OPERATING
PROFIT
-3.2% on 2022
PROFIT ATTRIBUTABLE TO
OWNERS OF THE PARENT
€1,682 million in 2022
€14,042 million
€6,508 million
€21,969 million
ORDINARY OPERATING
PROFIT(1)
ORDINARY PROFIT ATTRIBUTABLE
TO OWNERS OF THE PARENT
ORDINARY GROSS
OPERATING PROFIT(1)
of which 27.2% from Enel Green Power
€5,391 million in 2022
of which 59.7% eligible and aligned
with the European taxonomy
(1) The margins in the ordinary income statement are calculated in accordance with the indications given in the section “Definition of performance measures”. 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).
Millions of euro
Ordinary income statement(1)
Income statement
Revenue
Costs
2023
2022
Change
2023
2022
Change
98,163
143,009
(44,846)
-31.4%
95,565
140,517
(44,952)
-32.0%
73,232
125,692
(52,460)
-41.7%
72,344
122,964
(50,620)
-41.2%
Net results from commodity contracts
(2,962)
2,366
(5,328)
-
(2,966)
2,365
(5,331)
Gross operating profit/(loss)
21,969
19,683
2,286
11.6%
20,255
19,918
Depreciation, amortization and impairment
7,927
7,554
373
4.9%
9,423
8,725
337
698
-
1.7%
8.0%
Operating profit/(loss)
14,042
12,129
1,913
15.8%
10,832
11,193
(361)
-3.2%
Financial income
Financial expense
6,062
9,440
8,305
(2,243)
-27.0%
10,812
(1,372)
-12.7%
6,049
9,424
8,287
(2,238)
-27.0%
10,743
(1,319)
-12.3%
Net financial expense
(3,378)
(2,507)
(871)
-34.7%
(3,375)
(2,456)
(919)
-37.4%
Share of profit/(loss) of equity-accounted
investments(2)
Pre-tax profit/(loss)
Income taxes
Profit/(Loss) from continuing operations(2)
Profit/(Loss) from discontinued operations(2)
Profit for the year (owners of the Parent and
non-controlling interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
226
27
199
-
(41)
(60)
19
31.7%
10,890
9,649
1,241
3,211
7,679
-
2,622
7,027
-
7,679
7,027
6,508
1,171
5,391
1,636
589
652
-
652
1,117
(465)
12.9%
22.5%
7,416
2,778
9.3%
4,638
8,677
(1,261)
-14.5%
3,523
5,154
(745)
(516)
-21.1%
-10.0%
-
(371)
(2,234)
1,863
83.4%
9.3%
4,267
2,920
1,347
46.1%
20.7%
3,438
-28.4%
829
1,682
1,238
1,756
(409)
-
-33.0%
(1) The margins in the ordinary income statement are calculated in accordance with the indications given in the section “Definition of performance measures”.
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 figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergos-
byt LLC, a Russian company sold in December 2023, to “discontinued operations”.
Performance of the Group
141
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
Sale of commodities with physical settlement and fair value gain/(loss) on
contracts settled in the period
Sale of value-added services
Other income
Total
Change
(16,875)
-24.3%
2023
52,465
11,123
1,142
1,570
7,983
68
3,458
877
995
2022
69,340
11,096
979
1,667
8,970
80
5,605
826
1,672
27
163
(97)
(987)
(12)
(2,147)
51
(677)
10,383
32,987
(22,604)
1,653
3,848
1,384
5,911
269
(2,063)
95,565
140,517
(44,952)
0.2%
16.6%
-5.8%
-11.0%
-15.0%
-38.3%
6.2%
-40.5%
-68.5%
19.4%
-34.9%
-32.0%
In 2023, revenue decreased by €44,952 million (-32.0%)
from the €140,517 million of 2022. Specifically, this reduc-
tion is related both to the lower quantities of electricity
sold on the wholesale and retail markets and to the trends
in average selling prices of commodities in the two years
compared, which also significantly impacted the recogni-
tion of sales contracts with physical settlement.
The reduction in revenue also reflects the effects deriving
from the deconsolidation of certain companies sold in the
second half of 2022 (specifically Enel Transmisión Chile,
Celg Distribuição SA - Celg-D (Enel Goiás) and Fortaleza
CGT in Brazil) and in early 2023 (Enel Generación Costane-
ra and Central Dock Sud in Argentina), effects of which
were only partially offset by the greater revenue recorded
in generation from renewable sources, especially in Italy
and Spain, from hydroelectric plants and, in Latin America,
from wind and solar plants.
It should also be noted that “other income” recognized in
2023 includes revenue totaling €557 million deriving from
the partial sale, with loss of control, of assets in Australia
(€103 million) and in Greece (€160 million), from the sale
of certain renewable energy companies operating in Chile
(€195 million), and from the end-of-concession gain of
Enel CIEN for €99 million. In 2022, income included reve-
nue deriving from the sale of transmission assets in Chile
(€1,051 million) as well as ordinary income related to Stew-
ardship transactions involving the sale of investments in
Ufinet (€220 million), Gridspertise (for a total of €520 mil-
lion), and a number of companies to Mooney Group SpA
(€67 million).
Costs
Millions of euro
Electricity purchases
Consumption of fuel for electricity generation
Fuel for trading and gas for sale to end users
Materials
Personnel expenses
Services, leases and rentals
Environmental certificates
Other charges related to the electricity and gas system
Other charges for taxes and fees
Capital losses and other costs on the disposal of equity investments
Extraordinary solidarity levies
Other expenses
Capitalized costs
Total
142 Integrated Annual Report 2023
2023
24,668
6,385
15,324
2,747
5,030
15,450
2,603
568
1,529
404
208
813
(3,385)
72,344
2022
46,955
9,286
40,742
3,534
4,571
16,606
2,510
172
1,107
363
-
533
(3,415)
Change
-47.5%
-31.2%
-62.4%
-22.3%
10.0%
-7.0%
3.7%
-
38.1%
11.3%
-
52.5%
0.9%
(22,287)
(2,901)
(25,418)
(787)
459
(1,156)
93
396
422
41
208
280
30
122,964
(50,620)
-41.2%
Costs decreased by €50,620 million, mainly due to the gen-
eral reduction in the average prices of energy commodities,
also connected to a reduction in volumes.
This reduction was also affected by a decrease in transport
costs in Italy due to lower volumes and in Spain due to a
change in rates, by lower ancillary costs in the gas business
in Chile associated with lower sales, by lower costs for ser-
vice concession arrangement in Brazil, a decrease in pur-
chases of CO2 allowances and lower costs for material pur-
chases as a result of the change in the consolidation scope.
These effects were partially offset by higher costs for ear-
ly-retirement incentives and by the effects of regulatory
measures related to the clawback in Italy and Spain, as well
as an increase of €515 million in costs in Spain related to an
arbitration dispute with a Qatari gas supplier.
It should also be noted that, in 2023, charges deriving from
the sale of Enel Generación Costanera SA, Central Dock
Sud SA, and the El Chocón plant, in Argentina, were recog-
nized for a total of €363 million, as well as from the adjust-
ment of the price related to the sale of Celg Distribuição SA
- Celg-D (Enel Goiás) (€23 million).
Ordinary gross operating profit/(loss)
The table below presents gross operating profit/(loss) by
business line.
Millions of euro
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets(1)
Holding and Services(1)
Total
2023
3,594
5,568
7,851
5,275
(319)
2022
6,094
3,779
8,276
1,702
(168)
21,969
19,683
Change
(2,500)
-41.0%
1,789
(425)
3,573
(151)
2,286
47.3%
-5.1%
-
-89.9%
11.6%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Ordinary gross operating profit amounted to €21,969
million in 2023, an increase of €2,286 million compared
with 2022 (+11.6%), mainly due to the increase of €2,627
million in profit deriving from the operation of Integrated
Businesses (the combination of the business of Thermal
Generation and Trading, Enel Green Power and End-us-
er Markets) and the performance of Enel Grids, where the
changes in the consolidation scope as a result of the sale
of certain distribution assets in Brazil and Chile were more
than offset by the positive impact of rate adjustments in
Latin America.
In addition, the Integrated Businesses margin includes the
recognition, in 2023, of charges related to the definition of
an arbitration award for the supply of gas in Spain (€515
million) and the benefit of €481 million recognized in 2022
following an agreement with Shell in Chile. Excluding these
two factors, Integrated Businesses performance improved
by €3,623 million.
The overall change in ordinary gross operating margin also
reflects revenue from Stewardship transactions complet-
ed during the two years compared. More specifically, the
positive effects of the 2023 divestments of Enel Green
Power Australia (€103 million) and Enel Green Power Hel-
las (€422 million) were more than offset by the impact of
proceeds from 2022 divestments relating to Ufinet (€220
million), the sale of the finance companies of Enel X to the
Mooney Group (€67 million) and the partial disposal of
Gridspertise (€520 million).
Performance of the Group
143
Integrated Businesses
Enel has chosen to pursue an integrated strategy in our
core countries (i.e. Italy, Spain, the United States, Brazil,
Chile and Colombia), where the Group has a widespread
presence and a customer base to which to distribute the
electricity generated.
This integrated strategy aims to maximize the margin on
electricity sold, particularly by relying on gradual reduc-
tions in sourcing costs (i.e. the cost of generating and/or
procuring the commodity), connected to the increase in
renewable energy in our generation mix, in addition to the
expansion of volumes linked to the electrification of con-
sumption, with consequent benefits for the Group, for our
customers, and for all stakeholders generally.
The ordinary gross operating margin relating to the In-
tegrated Businesses encompassed by this strategy (the
“Integrated Businesses margin”) therefore stems from the
integration of the electricity value chain and includes the
results from electricity generation (i.e. Enel Green Power,
Thermoelectric Generation and Trading) and the sale of
electricity and services (End-user Markets).
In greater detail, the main businesses included in this Inte-
grated Businesses margin are the following:
1. Electricity – free market, which consists of:
– Integrated energy business: including electricity
business on the free market and generation from
renewable and thermal sources;
– Enel X: including all services provided to customers;
– Mobility: encompassing the activities of innovation,
development and commercialization of electric mo-
bility solutions.
2. Electricity – regulated market, which refers to regulated
generation activities (capacity market, essential plants,
incentives received for renewable energy, etc.) and to
the commercialization of energy on regulated markets.
3. Gas, which includes the retail and wholesale commer-
cialization of natural gas.
4. Trading and services, which includes portfolio optimiza-
tion and generation balancing services.
These are the businesses included in the Integrated Busi-
nesses margin, which, as mentioned, are as follows:
• Thermal Generation and Trading;
• Enel Green Power;
• End-user Markets, which includes Retail, Enel X and
Enel X Way.
The following table presents the Integrated Businesses
margin by business line and by geographical area, exclud-
ing the impact of Stewardship transactions.
Millions of euro
Thermal Generation and
Trading
Enel Green Power
End-user Markets
Total
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
Italy
Iberia
2,718
2,735
(17)
555
(562)
1,117 4,039
739 2,583
(1,844)
826
631
Rest of the World
Other
113
24
762
14
(649)
4,213
3,697
10
(26)
13
195
516
(39)
780
460
(4)
531
417
445
309
3,508
7,312
2,704
4,608
363 2,345
3,631
(1,286)
15 4,786
4,904
(313)
(6)
336
(118)
(342)
Integrated Businesses
margin including
Stewardship
3,594 6,094
(2,500) 5,568 3,779
1,789 5,275 1,702
3,573 14,437 11,575
2,862
Stewardship
-
-
-
511
(9)
520
-
285
(285)
511
276
Total
3,594 6,094
(2,500) 5,057 3,788
1,269 5,275
1,417
3,858 13,926 11,299
235
2,627
The Integrated Businesses margin increased by €2,627
million due mainly to the improvement of margins on free
market sales, especially in Italy and Spain as average sales
prices rose compared with the previous year, which was
characterized by significant price instability. This factor
was only partially offset by changes in consolidation scope
between the two periods and by the reduction in the gen-
eration margin. With regard to generation, the increase in
renewable energy (+14.5 TWh), mainly from hydroelectric
sources in Italy, Chile, Colombia and Spain, together with
the different sales price in trading activities, partially offset
the effects of lower amounts of electricity generated from
conventional sources and the recognition of regulatory
measures related to the clawback in Italy in the amount of
€357 million.
144 Integrated Annual Report 2023
Gross operating profit/(loss)
Millions of euro
Ordinary gross operating profit/(loss)
3,594
5,568
Thermal Generation and
Trading
Enel Green
Power
Non-ordinary gain/(loss) of mergers and
acquisitions
Extraordinary solidarity levies
Energy transition and digitalization
Impairment losses
Ordinary profit/(loss) from discontinued
operations
2023
Enel
Grids
7,851
(23)
-
(43)
-
(349)(1)
181(2)
-
(6)
(60)
-
(178)
-
-
(505)
(324)
End-user
Markets
Holding and
Services
Total
5,275
(319)
21,969
-
-
(58)
-
(59)
-
(208)
(81)
-
(1)
(191)
(208)
(366)
(60)
(889)
Gross operating profit/(loss)
3,067
5,178
7,461
5,158
(609)
20,255
(1) The balance includes €194 million for the capital loss on the sale of Central Dock Sud, €132 million to the loss on the sale of Enel Generación Costanera
recognized on Enel Argentina, €21 million to the elimination of receivables collected by Enel SpA relating to Enel Generación Costanera, and €2 million to
the impairment of the receivable recognized by Enel Américas, also from Enel Generación Costanera.
(2) The balance includes the loss on the sale of El Chocón generator sets in the amount of €14 million and the gain on the sale of Arcadia in the amount of
€195 million.
Millions of euro
Ordinary gross operating profit/(loss)
6,094
3,779
Thermal Generation and
Trading
Enel Green
Power
Non-ordinary gain/(loss) of mergers and
acquisitions
Energy transition and digitalization
Ordinary profit/(loss) from discontinued
operations
COVID-19 costs
(137)
(212)
(42)
(6)
-
(51)
(246)
(5)
2022(1)
Enel
Grids
8,276
839
(23)
38
(16)
End-user
Markets
Holding and
Services
Total
1,702
(168)
19,683
-
(3)
105
(2)
-
(8)
8
(4)
702
(297)
(137)
(33)
Gross operating profit/(loss)
5,697
3,477
9,114
1,802
(172)
19,918
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
The gross operating profit for 2023 amounted to €20,255
million, an increase of €337 million compared with the
previous year. This change essentially reflects the effects
mentioned in relation to ordinary gross operating profit,
excluding the effects attributable to discontinued opera-
tions, as well as the non-recurring results largely deriving
from the disposal of certain investments in the two years
being compared. For 2023, the latter are attributable to the
disposals of thermal generation operations in Argentina (a
total charge of €363 million) and the sale of certain renew-
able plants in Chile (a gain of €195 million), while for 2022
they regarded the sale of the companies Enel Transmisión
Chile in Chile and of the thermal generation company CGT
Fortaleza and the distribution company Celg Distribuição
SA - Celg-D (Enel Goiás) in Brazil. These divestments re-
sulted in recognition of a gain of €1,051 million for Enel
Transmisión Chile and charges for Enel Goiás (€208 mil-
lion) and CGT Fortaleza (€135 million).
Performance of the Group
145
Ordinary operating profit/(loss)
Millions of euro
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets(1)
Holding and Services(1)
Total
2023
2,812
3,815
4,743
3,241
(569)
2022
5,253
2,230
5,254
(210)
(398)
14,042
12,129
Change
(2,441)
-46.5%
1,585
(511)
3,451
(171)
1,913
71.1%
-9.7%
-
-43.0%
15.8%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Ordinary operating profit for 2023 increased by €1,913
million as a result of the factors commented above in rela-
tion to ordinary gross operating profit, taking into account
the increase in depreciation and amortization recognized
during the year in the area of distribution, particularly in
Italy and Spain, and the increase in impairment losses rec-
ognized on trade receivables compared with the previous
year in the same geographical areas.
Operating profit/(loss)
Millions of euro
Ordinary operating profit/(loss)
Non-ordinary gain/(loss) of mergers and
acquisitions
Extraordinary solidarity levies
Energy transition and digitalization
Impairment losses
Ordinary profit/(loss) from discontinued
operations
Thermal Generation and
Trading
Enel Green
Power
2,812
3,815
(349)(1)
147(2)
-
(192)
(91)
-
(6)
(1,465)
2023
Enel
Grids
4,743
(23)
-
(43)
-
-
(449)
(251)
End-user
Markets
Holding and
Services
Total
3,241
(569)
14,042
-
-
(58)
(126)
(15)
-
(208)
(81)
-
-
(225)
(208)
(380)
(1,682)
(715)
Operating profit/(loss)
2,180
2,042
4,426
3,042
(858)
10,832
(1) The balance includes €194 million for the loss related to the sale of Central Dock Sud, €132 million to the loss on the sale of Enel Generación Costanera
recognized on Enel Argentina, €21 million to the elimination of receivables collected by Enel SpA relating to Enel Generación Costanera, and €2 million to
the impairment of the receivable recognized by Enel Américas, also from Enel Generación Costanera.
(2) The balance includes the loss on the sale of El Chocón generator sets in the amount of €14 million, the gain on the sale of Arcadia in the amount of €195
million, and impairment losses on geothermal plants in North American in the amount of €34 million.
Millions of euro
2022(1)
Ordinary operating profit/(loss)
5,253
2,230
5,254
(210)
(398)
12,129
Thermal Generation and
Trading
Enel Green
Power
Enel Grids
End-user
Markets
Holding and
Services
Total
Non-ordinary gain/(loss) of mergers and
acquisitions
Energy transition and digitalization
Ordinary profit/(loss) from discontinued
operations
COVID-19 costs
Other changes
Operating profit/(loss)
(500)
(287)
(28)
(6)
(47)
-
(51)
(193)
(5)
(11)
12
(23)
120
(16)
(15)
4,385
1,970
5,332
-
(3)
134
(2)
(12)
(93)
-
(8)
9
(4)
-
(488)
(372)
42
(33)
(85)
(401)
11,193
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
146 Integrated Annual Report 2023
Operating profit decreased by €361 million compared
with the previous year. This change reflects the factors
commented above in relation to gross operating profit,
the effects of which were more than offset by the increase
in depreciation, amortization and impairment recognized
in 2023.
During the year, net impairment losses amounted to
€1,736 million, of which €1,234 million in respect of a
number of wind and photovoltaic generation plants in the
United States. Those plants underwent verification of the
recoverability of their carrying amounts, mainly due to the
continuation of adverse economic conditions connected
with dispatching costs for electricity generated in certain
markets, which gradually consolidated during the year,
accompanied by a general deterioration of the macro-
economic environment and the initiation and implemen-
tation by management of specific restructuring plans in
the country, which have had a significant impact on the
recoverable values of those assets.
Other impairment losses were recognized in North Amer-
ica on the assets of Enel X (€57 million) and Enel X Way
(€69 million).
Finally, in 2023, an impairment loss of €171 million was rec-
ognized on the Colombian Windpeshi wind project, sub-
ject to reclassification among net assets held for sale, in
accordance with the provisions of IFRS 5.
Impairment losses totaling €1,361 million were recognized
in 2022, in accordance with IFRS 5, on assets involved in
disposals, mainly related to Celg Distribuição SA - Celg-D
(Enel Goiás) (€827 million) and CGT Fortaleza (€73 million)
in Brazil and Enel Generación Costanera (€174 million) and
Central Dock Sud (€116 million) in Argentina.
Profit/(Loss) from discontinued operations
Discontinued operations posted a net loss of €371 million,
which, in 2023, includes the profits and losses relating to
the net discontinued operations of the companies that
make up the geographical areas of Russia, Romania and
Greece, classified as such based on the requirements of
“IFRS 5 - Non-current assets held for sale and discontin-
ued operations”.
Millions of euro
Total revenue
Costs
Impairment losses
Total costs
Operating profit/(loss)
Financial income/(expense)
Share of profit/(loss) of equity-accounted
investments
Pre-tax profit/(loss) from discontinued
operations
Current taxes
Deferred tax assets and liabilities
Income taxes
Profit/(Loss) from Russia, Greece and
Romania
Gain/(Loss) on the sale of discontinued
operations
Profit/(Loss) from discontinued operations
2023
2,535
2,126
215
2,341
194
(62)
58
190
67
(38)
29
161
(532)
(371)
Russia
Greece
Romania
2022(1)
Russia(1)
Greece
Romania
-
-
-
-
-
-
58
58
-
-
-
58
(124)
(66)
122
75
-
75
47
(49)
-
(2)
8
-
8
(10)
262
252
2,413
2,051
215
2,266
147
(13)
-
3,543
3,585
1,230
4,815
290
243
534
777
(1,272)
(487)
(43)
83
(9)
64
134
(1,232)
(432)
59
(38)
21
(15)
(37)
(52)
8
-
8
113
(1,180)
(440)
(670)
(1,054)
(1,054)
(557)
(2,234)
(1,494)
125
70
-
70
55
(35)
19
39
2
-
2
37
-
37
3,128
3,272
696
3,968
(840)
1
-
(839)
(25)
(37)
(62)
(777)
-
(777)
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergos-
byt LLC, a Russian company sold in December 2023, to “discontinued operations”.
It should be noted that, in addition to the financial perfor-
mance of these companies (a net profit of €161 million),
the figure includes the charges related to the sale of as-
sets owned in Romania in the amount of €670 million and
charges connected with the sale of Rusenergosbyt in Rus-
sia in the amount of €124 million. These effects were partly
offset by the gain recognized at the end of 2023 on the
sale of assets in Greece (€262 million).
In 2022, in addition to the financial performance of these
companies (a net loss of €1,180 million), the figure reflect-
ed effects of the loss on the divestment in Russia in the
amount of €1,054 million.
Performance of the Group
147
Group ordinary profit/(loss)
Group ordinary profit for 2023 amounted to €6,508 mil-
lion, an increase of €1,117 million (+20.7%) compared with
the €5,391 million of the previous year.
This increase in ordinary operating profit and the de-
crease in non-controlling interests in ordinary profit more
than offset the increase in net financial expense due to
Group profit/(loss)
the trend in interest rates. In absolute terms, taxes also in-
creased as a result of the improvement of pre-tax profit,
while the tax rate increased mainly as a result of the write-
down of deferred tax assets in the United States, Mexico
and Peru (€180 million).
Group profit in 2023 came to €3,438 million (€1,682 mil-
lion in 2022), an increase of €1,756 million compared with
2022. The table below provides a reconciliation of Group
profit with Group ordinary profit, indicating the non-recur-
ring items and their respective impact on performance,
net of the associated tax effects and non-controlling in-
terests.
Millions of euro
Group ordinary profit
Impairment losses
Non-ordinary profit/(loss) on discontinued operations
Non-ordinary profit/(loss) on merger and acquisitions
Energy transition and digitalization
Write-down of certain assets related to the sale of the investment in
Slovenské elektrárne
Extraordinary solidarity levies
Other transactions
COVID-19 costs
Group profit
2023
6,508
(1,216)
(959)
(278)
(259)
(209)
(149)
-
-
3,438
2022
5,391
-
(1,992)
(716)
(189)
(18)
(724)
(47)
(23)
1,682
Of note is the impact on Group profit of the “Caro bollette”
and solidarity levies introduced in Italy, Spain and Romania,
for a total of €149 million in 2023 and of €724 million in
2022.
148 Integrated Annual Report 2023
VALUE GENERATED
AND DISTRIBUTED FOR
STAKEHOLDERS
Millions of euro
Economic value generated directly
Economic value distributed directly
Operating expenses
Personnel expenses and benefits
Payments to providers of capital (shareholders and lenders)
Payments to government(1)
2023
96,159
67,631
4,126
8,890
6,221
2022
Change
140,821
(44,662)
-31.7%
114,384
(46,753)
-40.9%
3,646
7,691
5,103
480
1,199
1,118
13.2%
15.6%
21.9%
86,868
130,824
(43,956)
-33.6%
Economic value retained
9,291
9,997
(706)
-7.1%
(1) The figure for 2022 has been adjusted on the basis of more accurate information. The amount mainly includes “total tax borne”, which is the total amount
paid by the Enel Group (including the Greek and Romanian companies in both years) for taxes recognized in profit or loss. For more information on total tax
borne, please see the 2023 Sustainability Report and the Consolidated Non-Financial Statement.
The economic value generated and distributed directly by
Enel provides a good indication of how the Group has cre-
ated wealth for all stakeholders.
The decrease in value generated directly mainly reflects
the reduction in revenue from the sale of energy com-
modities, in particular gas and electricity, due both to the
smaller quantities transacted on the wholesale and retail
markets and to the reduction in average prices.
The decline in operating expenses is mainly due to the re-
duction in costs for electricity and gas purchases due to
the decrease in volumes and average prices, as well as the
decrease in costs for transport and CO2 allowances.
Payments to providers of capital mainly increased in re-
flection of interest expense, primarily connected with the
rise in interest rates. In addition, dividend payments in-
creased compared with the previous year.
Value generated and distributed for stakeholders
149
ANALYSIS OF THE GROUP’S
FINANCIAL POSITION AND
STRUCTURE
€105,272 million
NET CAPITAL EMPLOYED
€102,743 million in 2022
64.0%
SUSTAINABLE FINANCING
on total gross debt
€74,949 million
€60,163 million
NET FINANCIAL DEBT(1)
-0.8% on 2022
€12,714 million
TOTAL CAPITAL EXPENDITURE
84.4% eligible and aligned with the
European taxonomy
(1)
In order to facilitate analysis of developments in Group net financial debt, thereby ensuring greater comparability over time, management has decided
to exclude the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to
improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022.
(2) Does not include €849 million regarding units classified as held for sale (€156 million in 2022).
Net capital employed and funding
Millions of euro
Net non-current assets:
- property, plant and equipment and intangible assets
- goodwill
- equity-accounted investments
- net other non-current assets/(liabilities)(1)
Total net non-current assets
Net working capital:
- trade receivables
- inventories
- net receivables due from institutional market operators
- net other current assets/(liabilities)(1)
- trade payables
Total net working capital
Gross capital employed
Provisions:
- employee benefits
- provisions for risks and charges and net deferred taxes(2)
Total provisions
Net assets held for sale
Net capital employed
Total equity(2)
Net financial debt(1)
at Dec. 31, 2023 at Dec. 31, 2022
Change
106,953
13,042
1,650
(3,363)
118,282
17,773
4,290
(4,317)
(9,907)
(15,821)
(7,982)
110,300
(2,320)
(6,311)
(8,631)
3,603
105,272
45,109
60,163
106,135
13,742
1,281
(4,778)
116,380
16,605
4,853
(1,083)
(10,959)
(17,641)
(8,225)
108,155
(2,202)
(5,999)
(8,201)
2,789
102,743
42,080
60,663
818
(700)
369
1,415
1,902
1,168
(563)
(3,234)
1,052
1,820
243
2,145
(118)
(312)
(430)
814
2,529
3,029
(500)
0.8%
-5.1%
28.8%
29.6%
1.6%
7.0%
-11.6%
-
9.6%
10.3%
3.0%
2.0%
-5.4%
-5.2%
-5.2%
29.2%
2.5%
7.2%
-0.8%
(1)
In order to facilitate analysis of developments in Group net financial debt, thereby ensuring greater comparability over time, management has decided
to exclude the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to
improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022.
(2) Figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods beginning
on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures” of the consolidated financial statements.
150 Integrated Annual Report 2023
Property, plant and equipment and intangible assets in-
creased due essentially to capital expenditure in the peri-
od (€11,919 million), the capitalization of financial expense
(€300 million), the activation of new IFRS 16 rights of use
(€684 million), and the effect of impairment losses relat-
ed to the hyperinflation of assets held in Argentina (€914
million). These impacts were partially offset by the classi-
fication of certain assets as held for sale (€4,293 million),
essentially referring to distribution and generation assets
in Peru, as well as by depreciation, amortization and im-
pairment losses recognized for the year (€7,825 million)
and adverse exchange rate developments (€1,226 million),
referring essentially to Latin America.
Goodwill decreased mainly as a result of the above-men-
tioned classifications of certain Peruvian companies as
available for sale (€616 million) and the impairment recog-
nized on the assets of Enel X and Enel X Way in the United
States (€126 million). These effects are partially offset by
favorable exchange rate developments (€42 million).
Equity-accounted investments increased mainly due to
the consolidation at equity of joint ventures in Greece and
Australia following the partial sale, with loss of control, of
the related companies and the impairment loss on Slovak
Power Holding. These impacts were partially offset by the
effects deriving from the sale of Rusenergosbyt.
Net working capital increased, compared with Decem-
ber 31, 2022, by €243 million, mainly due to an increase in
trade receivables and a decrease in trade payables. These
impacts were partly offset by an increase in payables to in-
stitutional electricity market operators, mainly in Italy due
to the gradual restoration, in 2023, of the charges related
to the support of renewable energy and cogeneration, and
in Spain for other components payable to market opera-
tors.
Net assets held for sale increased mainly as a result of the
classification among the net assets held for the sale of
generation and distribution companies in Peru, net of the
divestments during the year. For a more detailed break-
down of the aggregate and related changes, please see
note 36 of the consolidated financial statements.
Net capital employed at December 31, 2023 came to
€105,272 million (€102,743 million at December 31, 2022)
and was covered by €45,109 million in equity attributable
to owners of the Parent and non-controlling interests and
€60,163 million in net financial debt. With regard to net
debt, the debt-to-equity ratio at December 31, 2023 was
1.33 (compared with 1.44 at December 31, 2022).
Analysis of the Group’s financial position and structure
151
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 and other financing on derivatives
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
Cash and cash equivalents and short-term financial assets
Net short-term debt
NET FINANCIAL DEBT(3)
Net financial debt of assets held for sale
at Dec. 31, 2023 at Dec. 31, 2022
Change
14,500
43,579
3,014
61,093
(3,837)
57,256
1,992
393
2,385
6,763
331
2,499
1,383
495
11,471
(1,007)
(2,899)
(161)
(6,882)
(10,949)
2,907
60,163
888
15,261
50,079
2,851
68,191
(4,213)
(761)
(6,500)
163
(7,098)
376
63,978
(6,722)
890
1,320
2,210
1,612
333
1,102
(927)
175
5,151
(2)
13,838
(11,339)
1,513
1,721
19,017
(2,838)
(8,319)
(2,266)
(11,119)
(24,542)
(3,315)
60,663
892
(130)
(1,226)
(7,546)
1,831
5,420
2,105
4,237
13,593
6,222
(500)
(4)
-5.0%
-13.0%
5.7%
-10.4%
8.9%
-10.5%
-
-70.2%
7.9%
-
-0.6%
-81.9%
-8.6%
-71.2%
-39.7%
64.5%
65.2%
92.9%
38.1%
55.4%
-
-0.8%
-0.4%
(1)
(2)
(3)
Includes other non-current financial borrowings included under other non-current financial liabilities.
Includes current borrowings included under other current financial liabilities.
In order to facilitate analysis of developments in Group net financial debt, thereby ensuring greater comparability over time, management has decided
to exclude the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to
improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022.
Net financial debt, in the amount of €60,163 million at
December 31, 2023, decreased by €500 million from the
€60,663 million of December 31, 2022. Cash flows gen-
erated by operating activities (€14,620 million) and from
the sale of certain investments included within the Group’s
divestment plan (for a total of €2,083 million, mainly relat-
ed to the sale of the Romanian companies, a shareholding
in companies in Greece, and certain renewable generation
companies in Chile and Argentina), the effects of the is-
suance of perpetual hybrid subordinated non-convertible
bonds (€986 million), the recognition of NRRP contribu-
tions in Italy to support investment as well as the change in
net financial liabilities associated with assets available for
sale (€720 million) substantially offset the cash flows used
in investing activities (€12,714 million) and the payment of
dividends (€5,317 million, including coupons paid to hold-
ers of hybrid bonds in the amount of €182 million).
Gross financial debt at December 31, 2023 came to
€74,949 million, a decrease of €14,469 million from the
previous year.
152
Integrated Annual Report 2023
Gross financial debt
Millions of euro
Gross financial debt
of which:
- sustainable financing
Sustainable financing/Total gross debt (%)
at Dec. 31, 2023
at Dec. 31, 2022
Gross long-
term debt
Gross short-
term debt
Gross debt
Gross long-
term debt
Gross short-
term debt
Gross debt
70,179
4,770
74,949
71,026
18,392
89,418
45,147
2,663
47,810
64%
42,561
13,977
56,538
63%
More specifically, gross long-term financial debt (includ-
ing the short-term portion), in the amount of €70,179 mil-
lion, includes €45,147 million in sustainable financing and
is structured as follows:
• bonds in the amount of €50,342 million, of which
€30,822 million in sustainable bonds, down €1,349 mil-
lion compared with December 31, 2022. This change
is mainly the result of redemptions, including a hybrid
bond of Enel SpA in the amount of $1,250 million (equal
to €1,132 million at December 31, 2023), currency gains,
and changes in the consolidation scope, only partially
offset by new issues, including a multi-tranche sustain-
ability-linked bond issued by Enel Finance International
in the total amount of €1,500 million in February 2023;
• bank borrowings in the amount of €16,492 million,
€14,325 million of which related to sustainable financ-
ing. These borrowings increased by €341 million com-
pared with the previous year due mainly to the use of
new financing that was only partially offset by repay-
ments made during the period. Of note among new
bank borrowings:
– a sustainability-linked line of credit granted by EKF
to Enel Finance America used at December 31, 2023
for $370 million (equal to €335 million at December
31, 2023);
– financing linked to sustainability goals granted by
the European Investment Bank to various companies
of the Group for a total value of €874 million;
• other borrowings in the amount of €3,345 million, an
increase of €161 million from the previous year.
Gross short-term financial debt, which decreased by
€13,622 million from December 31, 2022, totals €4,770
million and consists of commercial paper, all linked to sus-
tainability objectives, in the amount of €2,499 million, cash
collateral in the amount of €1,383 million, other short-
term financial payables in the amount of €495 million, and
other short-term bank borrowings in the amount of €393
million.
Cash and cash equivalents and short- and long-term fi-
nancial assets, totaling €14,786 million, decreased by
€13,969 million compared with the end of 2022, mainly
due to the €5,420 million decrease in financial receivables
for cash collateral, the €4,237 million decrease in cash and
cash equivalents, and the €2,105 million decrease in other
short-term financial receivables, mainly attributable to the
repayment of the receivable due at the end of 2022 from
Equatorial for the sale of the Brazilian electricity distribu-
tion company Celg Distribuição SA - Celg-D (Enel Goiás).
Analysis of the Group’s financial position and structure
153
Sustainability-linked finance at Enel
At Enel, sustainable finance is a key lever in creating eco-
nomic and financial value, enabling us to raise public and
private capital and channel those resources into sustain-
able investments, thereby sustaining achievement of our
development goals. The new sustainability-linked bond is-
sues, together with all the sustainable financing arranged
in the last year, made it possible to reach a 64% ratio of
sustainable sources of financing to the Group’s total gross
debt at the end of 2023, with a goal of reaching around
70% in 2026.
Sustainability-Linked Financing Framework
In 2020, Enel was the world’s first company to include a
mechanism in its funding agreements that links the cost
of financing to achieving one or more of the sustainabili-
ty targets specified in the Sustainability-Linked Financing
Framework, a document that extends the sustainabili-
ty-linked approach to all instruments of financial debt. The
Sustainability-Linked Financing Framework is updated
annually in line with the objectives defined in the Group’s
Strategic Plan.
The latest version published in January 2024 updated the
Sustainability Performance Targets (SPT) of the five key per-
formance indicators (KPIs) included in the framework, which
contribute to achievement of SDG 7 (“Clean and Accessible
Energy”) and SDG 13 (“Climate Action“) and the European
Environmental Objective of Climate Change Mitigation:
1. Intensity of Scope 1 GHG emissions related to power
generation (gCO2eq/kWh);
2. Intensity of Scope 1 and Scope 3 GHG emissions relat-
ed to Integrated Power (gCO2eq/kWh);
3. Absolute Scope 3 GHG emissions related to retail gas
(MtCO2eq);
4. Percentage of installed renewable capacity (%);
5. Percentage of capital expenditure aligned with the EU
taxonomy (%).
KPI
Actual value
Sustainability Performance Targets (SPTs)
2023
2023
2024
2025
2026
2030
2040
Intensity of Scope 1 GHG emissions related to
power generation (gCO2eq/kWh)
Intensity of Scope 1 and Scope 3 GHG emissions
related to Integrated Power (gCO2eq/kWh)
Absolute Scope 3 GHG emissions related to retail
gas (MtCO2eq)
Percentage of installed renewables capacity (%)
Percentage of capital expenditure aligned with
the EU taxonomy (%)
160
148
140
168
16.8
68.2
84.8
65
69
130
135
20.9
73
125
135
72
73
20.0
11.4
0
0
0
74
80
100
>80
(2023-2025)(39)
>80
(2024-2026)(40)
Developments in the KPIs shown in the table are period-
ically verified by an external auditor and are published by
Enel in the Integrated Annual Report and the Sustainability
Report.
Globally, greenhouse gas (GHG) emissions continued to
increase in 2023, largely as a result of economic recovery
and a further increase in fossil fuel consumption, with the
energy crisis and the high prices of natural gas and lique-
fied natural gas sparking greater use of coal as a cheaper
but more polluting fuel.
Nevertheless, the Group managed to reduce direct and
indirect greenhouse gas emissions along the entire value
chain by 26.3% overall compared with the previous year.
Furthermore, the Group also reduced the intensity of
Scope 1 GHG emissions related to power generation by
over 30.6%, going from 229 gCO2eq/kWh in 2022 to 160
gCO2eq/kWh in 2023. This reduction reflected a 12.9% in-
crease in consolidated renewables generation and a 37.5%
reduction in consolidated thermal generation compared
with 2022, a consequence of the Group’s strategy to shift
its generation mix towards renewables and to advance the
decarbonization process.
However, the war in Ukraine and the resulting restrictions
on gas imports from Russia into the EU, which caused
a decrease in gas supplies accompanied by a surge in
wholesale electricity and gas prices, with serious effects
for households and businesses, prompted EU govern-
ments to implement a series of policy responses to mit-
igate the impact of rising costs and ensure the stability of
the energy system.
(39) SPT with cumulative observation period of 2023-2025.
(40) SPT with cumulative observation period of 2024-2026.
154 Integrated Annual Report 2023
In particular, the Italian government responded with a na-
tional plan to contain natural gas consumption, including
measures to maximize thermal generation using fuels
other than gas. This was implemented with Decree Law
14/2022, which required the national transmission system
operator (TSO) to develop a program to maximize elec-
tricity production from coal-fired power plants until the
end of September 2023. Consequently, the TSO identified
Enel’s coal plants as essential and required them to maxi-
mize such output.
In Spain, the government authorization for the closure of
the As Pontes coal plant, requested by Enel’s Endesa sub-
sidiary in December 2019 for June 2021, was postponed to
the end of 2023 as the plant was identified as essential by
the transmission system operator.
Due to the unprecedented crisis faced by the European
energy system in 2022 and 2023, the Group’s emissions
reduction in 2023 was not sufficient to achieve the Scope
1 GHG emissions intensity target related to electricity gen-
eration set for 2023 as announced on the occasion of the
Capital Markets Day held in November 2020 for the launch
of the 2021-2023 Strategic Plan. As a result of the energy
crisis, the intensity value was slightly higher than the target
of 148 gCO2eq/kWh. In the absence of these factors, Enel
would have been able to reach an emissions intensity level
well below the target of 148 gCO2eq/kWh.
As a result, the Group’s sustainability-linked instruments
that set the Scope 1 emissions intensity target for elec-
tricity generation at 148 gCO2eq/kWh for 2023 will be sub-
ject to an increase in the relative step-up, and Enel will
comply with its obligations in accordance with the terms
and conditions of the legal documentation of these sus-
tainability-linked transactions.
Despite these unprecedented circumstances, the Group’s
emissions intensity in 2023 remained aligned with the 1.5
ºC pathway: the sector’s decarbonization approach en-
visaged by the SBTi initiative had established a maximum
threshold of 246 gCO2eq/kWh for 2023, well above Enel’s
actual performance.
Ultimately, Enel’s commitment to decarbonization remains
confirmed for both the short, medium and long term, as
envisaged in the new 2024-2026 Strategic Plan, which es-
tablishes a new short-term target for 2026 of 125 gCO2eq/
kWh. This new target, which is incorporated in the Sustain-
ability-Linked Financing Framework as updated in January
2024 and linked to the first issue of sustainability-linked
bonds in 2024, confirms Enel’s commitment to the ener-
gy transition and contributes to the environmental and fi-
nancial sustainability of the Group’s development strategy.
Furthermore, we are still committed to the 2030 target of
an 80% reduction in the intensity of Scope 1 GHG emis-
sions related to power generation compared with the 2017
baseline and the final 2040 target of a 100% reduction in
these emissions without resort to any type of offsetting or
carbon removal mechanisms.
In 2023, the Group, acting through its financial subsidiary
Enel Finance International NV (EFI), issued a bond in Feb-
ruary on the European market in the amount of €1,500
million, combining, in the eight-year tranche, a KPI linked
to the EU taxonomy with a KPI linked to the United Na-
tions SDGs. The second tranche of the 20-year bond, on
the other hand, was linked to two KPIs associated with the
Group’s focus on complete decarbonization through the
reduction of direct and indirect greenhouse gas emis-
sions.
In November 2023, Enel SpA obtained a three-year sus-
tainability-linked revolving credit facility worth €1,500 mil-
lion and linked to SDG 13.
In March 2023, Enel Finance International renewed its
€8,000 million commercial paper program, linking it to the
KPI “Intensity of Scope 1 GHG emissions related to pow-
er generation (gCO2eq/kWh)” and the KPI “Percentage of
capital expenditure aligned with the EU taxonomy (%)”.
Enel’s role in the Recovery Plan
Enel acts as a strategic partner in the Recovery Plan with
the aim of driving sustainable, rapid and effective growth
through the implementation of projects in line with the
missions of the individual Recovery and Resilience Plans
at the national level. In this regard, in 2023, the decrees
relating to the projects Smart Grids and Resilience in Italy
were signed, for a total of €3,500 million. In addition to
Recovery, the Enel Group has submitted project proposals
for other opportunities offered at European level, such as
the Innovation Fund where the grant agreement for the
Catania Gigafactory was signed, the Important Projects of
Common European Interest (IPCEI) where projects for the
development of green hydrogen were presented, and the
Connecting Europe Facility (CEF) for the development of
electric charging infrastructures.
International development finance
The Group is leading an innovation process aimed at ac-
celerating the mobilization of capital to support sustain-
able growth through the use of sustainability-linked finan-
cial instruments.
More specifically, in 2023, the Group obtained incentivized
loans for a total of €1,800 million, which include sustain-
ability-linked mechanisms tied to SDG 13. The main op-
erations include sustainability-linked financing for a total
of $800 million by Enel Finance America and EKF (Danish
export credit agency), which is the EKF’s first sustainabili-
ty-linked financing agreement.
Analysis of the Group’s financial position and structure
155
Cash flows
For more information, please see note 46 of the consoli-
dated financial statements.
Capital expenditure
Millions of euro
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets
Holding and Services
Total(2)
2023
761
5,345
5,280
1,138
190
2022(1)
990
6,386
5,547
1,205
219
Change
(229)
(1,041)
(267)
(67)
(29)
12,714
14,347
(1,633)
-23.1%
-16.3%
-4.8%
-5.6%
-13.2%
-11.4%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
(2) The figure does not include €849 million regarding units classified as held for sale (€156 million in 2022).
Capital expenditure decreased by €1,633 million from the
previous year.
In line with the Paris Agreement in terms of reducing CO2
emissions, the Group’s investments focused mainly on re-
newable energy and grids.
In particular, with regard to renewable energy, the change
mainly concerned the increases in Italy (€824 million) and
Colombia (€15 million), which were more than offset by
lower capital expenditure in the United States (€1,197 mil-
lion), Chile (€236 million), Peru (€196 million), Canada (€181
million), and Spain (€51 million).
Capital expenditure on grids, aimed at ensuring reliability
and quality of service through efficient, resilient and digital
networks, increased in Italy (€370 million), Spain (€25 mil-
lion), and Colombia (€18 million), while decreasing in Brazil
(€335 million), Romania (€140 million), Peru (€111 million),
Argentina (€60 million), and Chile (€26 million).
Capital expenditure in the End-user Markets Business Line
fell by €67 million. More specifically, the decrease in Retail
concerned Italy (€81 million), Spain (€18 million) and Ro-
mania, essentially in the digitization of operational cus-
tomer management processes.
Within the End-user Markets, but related to mobility, cap-
ital expenditure mainly decreased in Brazil, by €30 million,
only partially offset by increased capital expenditure in Italy.
Within the End-user Markets Business Line for Enel X,
capital expenditure increased mainly in Italy, in the e-City
and Distributed Energy businesses, and in Brazil in the
e-City business.
Capital expenditure in Thermal Generation and Trading
decreased by €229 million, particularly in Latin America
and Italy.
156 Integrated Annual Report 2023
PERFORMANCE BY
PRIMARY SEGMENT
(BUSINESS LINE) AND
SECONDARY SEGMENT
(GEOGRAPHICAL AREA)
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 geographical area.
In this regard, note that the organizational simplification
process begun in 2023 led to a restructuring of the busi-
ness lines and geographical areas, with a consequent
need to redefine the segments subject to disclosure in
order to present the results of the segments based on the
approach used by management to monitor and present
the Group’s performance to investors.
In particular, in the presentation of figures by primary seg-
ment (Business Line):
• the figures for Enel X, which in the year ended Decem-
ber 31, 2022 had been presented separately, are now
reported under End-user Markets;
• the figures for Enel X Way, which in the year ended De-
cember 31, 2022 had been presented under Holding,
Services and Other, are now reported under End-user
Markets.
In the presentation of figures by secondary segment
(Geographical Area), the figures for Latin America, Europe,
North America, Africa, Asia and Oceania have merged into
the “Rest of the World” area.
The organization continues to be based on matrix of busi-
ness lines (Thermal Generation and Trading, Enel Green
Power, Enel Grids, End-user Markets, Enel X, Holding and
Services) and geographical areas (Italy, Iberia, Rest of the
World, Central/Holding).
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
157
The following chart outlines these organizational arrange-
ments.
THERMAL
GENERATION
TRADING
ENEL GREEN
POWER
ENEL GRIDS
END-USER MARKETS
HOLDING
AND SERVICES
REGIONS/
COUNTRIES
Italy
Iberia
Rest of the
World
Africa, Asia
and Oceania
Latin
America
Europe
Nort h
America
Following these changes, the figures for the previous year
were adjusted for comparative purposes only.
158 Integrated Annual Report 2023
Performance by primary segment (Business Line)
in 2023 and 2022
Results for 2023(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
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
20,152
8,459
17,206
49,748
-
95,565
-
95,565
20,038
3,161
3,053
2,371
2,045
30,668
(30,668)
-
Total revenue
40,190
11,620
20,259
52,119
2,045
126,233
(30,668)
95,565
Net results from commodity contracts
Gross operating profit/(loss)
Depreciation, amortization and
impairment losses
Operating profit/(loss)
Capital expenditure
(1,983)
3,067
(65)
-
5,178
7,461
(923)
5,158
5
(2,966)
(609)
20,255
887
3,136
3,035
2,116
249
9,423
2,180
2,042
4,426
3,042
761(2)
5,345(3)
5,280(4)
1,138(5)
(858)
190(6)
10,832
12,714
-
-
-
-
-
(2,966)
20,255
9,423
10,832
12,714
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figure does not include €14 million classified as available for sale or discontinued operations.
(3) The figure does not include €565 million classified as available for sale or discontinued operations.
(4) The figure does not include €233 million classified as available for sale or discontinued operations.
(5) The figure does not include €34 million classified as available for sale or discontinued operations.
(6) The figure does not include €3 million classified as available for sale or discontinued operations.
Results for 2022(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
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
53,239
6,669
19,806
60,785
18
140,517
-
140,517
23,096
2,498
3,226
3,565
2,032
34,417
(34,417)
-
Total revenue
76,335
9,167
23,032
64,350
2,050
174,934
(34,417)
140,517
551
5,697
183
-
3,477
9,114
1,595
1,802
(180)
19,910
(5)
2,324
41
2,365
1,312
1,507
3,782
1,895
229
8,725
4,385
990(2)
1,970
5,332
(93)
(409)
11,185
6,386(3)
5,547(4)
1,205(5)
219
14,347
8
-
8
-
19,918
8,725
11,193
14,347
Net results from commodity contracts
Gross operating profit/(loss)
Depreciation, amortization and
impairment losses
Operating profit/(loss)
Capital expenditure
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) The figure does not include €2 million classified as available for sale or discontinued operations.
(3) The figure does not include €42 million classified as available for sale or discontinued operations.
(4) The figure does not include €110 million classified as available for sale or discontinued operations.
(5) The figure does not include €2 million classified as available for sale or discontinued operations.
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 division/
business line, but also by geographical area.
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 primary segment (Business Line) and secondary segment (Geographical Area)
159
Ordinary gross operating profit(1)
Millions of euro
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets
Holding and Services
Total
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
Italy
Iberia
Rest of the World
Latin America
Argentina
Brazil
Chile
Colombia
Peru
Panama
Other countries
Europe
Romania
Russia
Other countries
United States and
Canada
Mexico
Africa, Asia and
Oceania
South Africa
India
Other countries
Other
Total
2,718
2,735
(17)
555
(562)
1,117
3,589
3,707
(118)
739
2,583
(1,844)
826
631
195
1,668
1,621
(649)
4,213
3,697
516
2,598
2,384
(571)
2,623
2,372
251
2,284
2,445
(161)
113
166
5
(16)
50
(23)
153
(1)
(2)
4
4
-
-
762
737
76
81
399
29
154
(2)
-
45
(8)
53
-
(71)
(97)
(349)
(52)
(1)
1
(2)
19
549
983
743
224
70
35
21
506
798
674
203
102
68
(41)
659
244
156
140
12
(53)
-
(37)
18
86
-
503
789
(2)
43
185
69
21
(32)
(33)
415
16
(18)
417
(60)
(19)
(41)
749
907
(158)
3
-
-
-
-
(1)
-
-
-
-
4
-
-
-
-
24
14
10
40
142
31
6
105
(26)
81
93
73
17
3
13
(41)
49
(42)
(11)
102
(39)
47
214
4,039
780
460
424
5
220
75
79
45
-
-
50
54
-
(4)
(11)
(15)
4
(3)
-
-
(3)
(4)
531
417
445
560
35
237
83
151
54
-
-
(81)
(110)
1
28
(24)
(28)
(10)
4
-
-
(10)
309
3,508
363
15
(136)
(30)
(17)
(8)
(72)
(9)
-
-
131
164
(1)
(32)
13
13
-
7
-
-
7
56
39
(132)
(132)
(5)
(37)
(89)
-
(1)
-
-
2
2
-
-
-
-
-
-
-
(2)
(2)
89
(5)
(119)
(117)
(3)
(23)
(91)
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(2)
44
(13)
(15)
(2)
(14)
2
-
-
-
2
2
-
-
-
-
-
-
-
-
-
(33)
10,957
6,500
4,457
4,052
5,247
(1,195)
7,252
7,169
5,365
5,997
(30)
217
2,212
2,290
1,121
1,357
1,316
1,341
(1)
644
83
(632)
(247)
(78)
(236)
(25)
20
(31)
(35)
882
569
(72)
385
(223)
(186)
(37)
56
(42)
(11)
109
624
100
68
147
(39)
72
114
942
858
84
83
73
17
(7)
69
33
1,029
530
-
499
719
672
47
139
31
6
102
(54)
88
(142)
1,496
1,489
102
517
223
-
-
314
314
-
-
-
-
-
-
-
-
-
168
487
213
-
-
(61)
(61)
-
-
-
-
-
-
-
-
-
7
(66)
30
10
-
-
375
375
-
-
-
-
-
-
-
-
-
(4)
564
(568)
(313)
(282)
(133)
(149)
(292)
767
(1,059)
3,594
6,094
(2,500)
5,568
3,779
1,789
7,851
8,276
(425)
5,275
1,702
3,573
(319)
(168)
(151)
21,969
19,683
2,286
North America
(57)
(20)
988
(199)
(1) Ordinary gross operating profit does not include non-recurring items. For a reconciliation with gross operating profit, please see the section “Group Per-
formance”.
160 Integrated Annual Report 2023
Millions of euro
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets
Holding and Services
Total
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
2023
2022
Change
2,718
2,735
(17)
555
(562)
1,117
3,589
3,707
(118)
739
2,583
(1,844)
826
631
195
1,668
1,621
Rest of the World
(649)
4,213
3,697
516
2,598
2,384
(571)
2,623
2,372
251
2,284
2,445
(161)
(54)
88
(142)
1,496
1,489
113
166
5
(16)
50
(23)
153
(1)
(2)
4
4
-
-
3
-
-
-
-
762
737
76
81
399
29
154
(2)
-
45
(8)
53
-
(1)
-
-
-
-
(41)
659
244
156
140
(71)
(97)
(349)
(52)
(1)
1
(2)
12
(53)
-
(37)
4
-
-
-
-
19
549
983
743
224
70
35
-
503
789
40
142
31
6
105
(26)
21
506
798
674
203
102
68
18
86
81
93
73
17
3
13
(2)
43
185
69
21
(32)
(33)
415
16
(18)
417
(41)
49
(42)
(11)
102
(39)
102
517
223
314
314
-
-
-
-
-
-
-
-
-
-
-
168
487
213
(61)
(61)
-
-
-
-
-
-
-
-
-
-
-
24
14
10
(4)
564
(568)
47
214
7
(66)
30
10
375
375
-
-
-
-
-
-
-
-
-
-
-
Italy
Iberia
Latin America
Argentina
Brazil
Chile
Colombia
Peru
Panama
Europe
Romania
Russia
Other countries
Other countries
United States and
Canada
Mexico
Africa, Asia and
Oceania
South Africa
Other countries
India
Other
Total
North America
(57)
(20)
988
(199)
(60)
(19)
(41)
749
907
(158)
4,039
780
460
424
5
220
75
79
45
-
-
50
54
-
(4)
(11)
(15)
4
(3)
-
-
(3)
(4)
531
417
445
560
35
237
83
151
54
-
-
(81)
(110)
1
28
(24)
(28)
4
(10)
-
-
(10)
309
3,508
363
15
(136)
(30)
(17)
(8)
(72)
(9)
-
-
131
164
(1)
(32)
13
13
-
7
-
-
7
56
39
(132)
(132)
(5)
(37)
(89)
-
(1)
-
-
2
2
-
-
(2)
(2)
-
-
-
-
-
89
(5)
(119)
(117)
(3)
(23)
(91)
-
-
-
-
-
-
-
-
(2)
(2)
-
-
-
-
-
(33)
10,957
6,500
4,457
44
(13)
(15)
(2)
(14)
2
-
(1)
-
-
2
2
-
-
-
-
-
-
-
-
-
4,052
5,247
(1,195)
7,252
7,169
5,365
5,997
(30)
217
2,212
2,290
1,121
1,357
1,316
1,341
644
69
33
1,029
530
-
499
719
672
47
139
31
6
102
624
100
68
147
(39)
72
114
942
858
84
83
73
17
(7)
83
(632)
(247)
(78)
(236)
(25)
20
(31)
(35)
882
569
(72)
385
(223)
(186)
(37)
56
(42)
(11)
109
(313)
(282)
(133)
(149)
(292)
767
(1,059)
3,594
6,094
(2,500)
5,568
3,779
1,789
7,851
8,276
(425)
5,275
1,702
3,573
(319)
(168)
(151)
21,969
19,683
2,286
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
161
162 Integrated Annual Report 2023
THERMAL GENERATION
AND TRADING
26 GW
NET EFFICIENT
INSTALLED CAPACITY
-29.8% from coal-fired
plants on 2022
80.3 TWh
NET ELECTRICITY
GENERATION
-45.5% from coal-fired plants
on 2022
€3,594 million
ORDINARY GROSS
OPERATING PROFIT
€6,094 million in 2022
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 Rest of the World
- of which Latin America
- of which Europe
2023
10,755
8,021
36,705
24,865
80,346
20,503
46,052
13,791
13,791
-
2022
19,722
14,652
54,436
26,508
Change
(8,967)
(6,631)
(17,731)
(1,643)
115,318
(34,972)
30,149
52,674
32,495
22,439
10,056
(9,646)
(6,622)
(18,704)
(8,648)
(10,056)
-45.5%
-45.3%
-32.6%
-6.2%
-30.3%
-32.0%
-12.6%
-57.6%
-38.5%
-
In 2023, thermal generation decreased by 34,972 million
kWh compared with 2022, in a context of greater water
availability and a reduction in electricity needs, particularly
in Italy and Iberia.
The decrease in generation by fuel-oil and turbo-gas
plants and by combined-cycle plants, of 6,631 million kWh
and 17,731 million kWh respectively, is mainly attributable
to the sale of the entire stake held in the share capital
of the Russian company PJSC Enel Russia (10,056 million
kWh), as well as the sale of the Argentine companies Enel
Generación Costanera (3,989 million kWh) and Central
Dock Sud (2,553 million kWh).
The decrease in generation by coal-fired plants, down
8,967 million kWh, is mainly attributable to Italy, which had
resorted to this technology in 2022 and until the 1st Quar-
ter of 2023 for application of the preventive measures
put in place by the Italian government to reduce gas con-
sumption.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
163
Net efficient installed 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 Rest of the World
- of which Latin America
- of which Europe
2023
4,627
5,942
11,983
3,328
25,880
11,145
11,347
3,388
3,388
-
2022
6,590
7,204
13,895
3,328
31,017
11,569
12,751
6,697
6,697
-
Change
-29.8%
-17.5%
-13.8%
-
-16.6%
-3,7%
-11.0%
-49.4%
-49.4%
-
(1,963)
(1,262)
(1,912)
-
(5,137)
(424)
(1,404)
(3,309)
(3,309)
-
Net efficient generation capacity for thermal power plants
at December 31, 2023 stood at 25,880 MW, a decrease of
5,137 MW compared with 2022, mainly following the sale
of the Enel Generación Costanera and Central Dock Sud
plants in Argentina, the decommissioning of a coal plant in
Iberia (As Pontes), and the decommissioning of two units
of a coal plant in Italy (Fusina).
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2023
40,190
3,067
3,594
2,180
2,812
761(1)
2022
76,335
5,697
6,094
4,385
5,253
990(2)
Change
(36,145)
(2,630)
(2,500)
(2,205)
(2,441)
(229)
-47.4%
-46.2%
-41.0%
-50.3%
-46.5%
-23.1%
(1) The figure does not include €14 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €2 million regarding units classified as held for sale or discontinued operations.
The following table provides a breakdown of revenue for
Thermal Generation and Trading from conventional thermal
and nuclear generation.
Revenue from thermal and nuclear generation(1)
Millions of euro
Revenue
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
2023
14,054
2,885
1,463
14.7%
3.0%
1.5%
2022
24,155
6,500
1,570
17.2%
4.6%
1.1%
(1) The revenue analyzed refers to that for the segment and include transactions with third parties and the intersegment transactions of each segment with
the others.
164 Integrated Annual Report 2023
The following tables show a breakdown of performance by
geographical area in 2023.
Revenue
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Other
Eliminations and adjustments
Total
2023
26,178
11,348
2,809
2,548
7
656
1,335
317
233
-
261
-
82
2022
55,389
17,488
4,090
3,858
145
959
2,268
218
268
-
218
14
106
(227)
40,190
(738)
76,335
Change
-52.7%
-35.1%
-31.3%
-34.0%
-95.2%
-31.6%
-41.1%
45.4%
-13.1%
-
19.7%
-
-22.6%
69.2%
-47.4%
(29,211)
(6,140)
(1,281)
(1,310)
(138)
(303)
(933)
99
(35)
-
43
(14)
(24)
511
(36,145)
Revenue for 2023 amount to €40,190 million, a decrease
of €36,145 million from 2022. This decrease is mainly at-
tributable to the decline in thermal generation, due in part
to the increase in renewable generation, above all from hy-
droelectric sources, and to the decreasing average prices
applied, above all, on wholesale sales compared with the
previous year.
Ordinary gross operating profit/(loss)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Other
Total
2023
2,718
739
113
168
5
(16)
50
(23)
153
(1)
(57)
4
24
2022
2,735
2,583
762
737
76
81
399
29
154
(2)
(20)
45
14
(17)
(1,844)
(649)
(569)
(71)
(97)
(349)
(52)
(1)
1
(37)
(41)
10
3,594
6,094
(2,500)
Change
-0.6%
-71.4%
-85.2%
-77.2%
-93.4%
-
-87.5%
-
-0.6%
50.0%
-
-91.1%
71.4%
-41.0%
The decrease in the ordinary gross operating profit, in the
amount of €2,500 million, is mainly attributable to the low-
er thermal generation, combined with the lower average
prices applied in 2023 compared with 2022, as well as the
recognition of a charge in the amount of €515 million fol-
lowing the arbitration award for the revision of the price of
a long-term gas-supply contract at Endesa.
The reduction also reflects the change in the consolida-
tion scope linked to the sales of CGT Fortaleza in Brazil in
2022 and of Enel Generación Costanera and Central Dock
Sud in Argentina in 2023.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
165
Gross operating profit came to €3,067 million, a decrease
of €2,630 million from the €5,697 million posted in 2022.
In addition to the reduced generation at lower average
prices and the recognition of the arbitration award of €515
million in Spain, as mentioned above, the change from the
previous year also reflects the change in the consolidation
scope, for the sales mentioned above in Argentina and
Brazil (a decrease of €158 million).
Finally, it should be noted that, in the two financial years
compared, non-recurring items essentially led to the rec-
ognition of greater overall charges of €172 million. More
specifically, these effects refer to the charges related to
Ordinary operating profit/(loss)
Millions of euro
the 2023 sales of the thermal generation companies in
Argentina (€349 million) and the charges for the energy
transition and digitalization (€178 million), mainly relating
to the adjustment of the value of inventories of fuel and
other materials used by coal-fired plants in Italy.
In 2022, the main non-recurring items included the
charges related to the sale of CGT Fortaleza in Brazil (€137
million), the closure of the Bocamina II power plant in Chile
(€56 million), and the provision recognized for Enel Pro-
duzione (€142 million) for the costs associated with the
conversion of certain plants.
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Other
Total
2023
2,562
217
10
76
3
(16)
16
(40)
122
(9)
(70)
4
23
2022
2,591
2,068
582
571
4
75
361
12
122
(3)
(20)
31
12
(29)
(1,851)
(572)
(495)
(1)
(91)
(345)
(52)
-
(6)
(50)
(27)
11
2,812
5,253
(2,441)
Change
-1.1%
-89.5%
-98.3%
-86.7%
-25.0%
-
-95.6%
-
-
-
-
-87.1%
91.7%
-46.5%
The decrease in the ordinary operating profit essentially
reflects the factors described in relation to ordinary gross
operating profit, taking account of the decrease in depre-
ciation, amortization and impairment losses of €59 million
compared with the previous year.
Operating profit for 2023 came to €2,180 million (€4,385
million in 2022), a decrease of €2,205 million taking into
account the factors described above in relation to gross
operating profit and the decrease in depreciation, amor-
tization and impairment losses compared with previous
year. More specifically, 2022 included impairment losses
in Latin America and Spain totaling €474 million, while
in 2023 they concerned certain projects in Spain in the
amount of €91 million.
166 Integrated Annual Report 2023
Capital expenditure
Millions of euro
Italy
Iberia
Rest of the World
Latin America
North America
Europe
Total
2023
394
306
61
57
4
-
2022
408
272
310
289
7
14
761(1)
990(2)
Change
(14)
34
(249)
(232)
(3)
(14)
(229)
-3.4%
12.5%
-80.3%
-80.3%
-42.9%
-
-23.1%
(1) The figure does not include €14 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €2 million regarding units classified as held for sale or discontinued operations.
The decrease of €229 million in capital expenditure is due
to the change in the consolidation scope as a result of the
sale of the aforementioned assets in Argentina.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
167
168 Integrated Annual Report 2023
ENEL GREEN POWER
55.5 GW
NET EFFICIENT
INSTALLED CAPACITY
127.0 TWh
NET ELECTRICITY
GENERATION
68.2% of total Group capacity
+29.2% from solar plants on 2022
€5,345 million(1)
CAPITAL EXPENDITURE
-16.3% on 2022
€5,568 million
ORDINARY GROSS OPERATING PROFIT
€3,779 million in 2022
(1) The figure does not include €565 million regarding units classified as held for sale or discontinued operations.
Operations
Net electricity generation
Millions of kWh
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net generation
- of which Italy
- of which Iberia
- of which Rest of the World
- of which Latin America
- of which Europe
- of which North America
- of which Africa, Asia and Oceania
2023
60,991
6,001
45,339
14,613
42
2022
51,728
6,117
43,255
11,306
43
Change
9,263
(116)
2,084
3,307
(1)
126,986
112,449
14,537
22,098
14,212
90,676
60,960
2,151
25,611
1,954
18,311
12,041
82,097
53,154
2,458
23,385
3,100
3,787
2,171
8,579
7,806
(307)
2,226
(1,146)
17.9%
-1.9%
4.8%
29.2%
-2.3%
12.9%
20.7%
18.0%
10.4%
14.7%
-12.5%
9.5%
-37.0%
Net electricity generation in 2023 increased from 2022 due
to greater hydroelectric, wind and solar generation.
Hydroelectric generation posted a sharp increase as a re-
sult of greater water availability in Italy (+3,686 million kWh),
in Chile (+2,440 million kWh), in Colombia (+1,630 million
kWh), in Argentina (+1,200 million kWh), and in Spain (+606
million kWh), partly offset by lower generation in Panama
(-153 million kWh) and Guatemala (-99 million kWh).
Solar generation increased mainly in Chile (+1,386 million
kWh), the United States (+1,047 million kWh), and Spain
(+882 million kWh).
The most significant changes in wind generation were seen
in Brazil (+1,052 million kWh), in the United States (+1,074
million kWh), in Spain (+683 million kWh), and in Cana-
da (+371 million kWh), partly offset by lower generation in
South Africa (-529 million kWh) due to the deconsolidation
of certain companies, in India (-208 million kWh), and in
Peru (-136 million kWh).
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
169
Net efficient installed capacity
MW
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net efficient installed capacity
- of which Italy
- of which Iberia
- of which Rest of the World
- of which Latin America
- of which Europe
- of which North America
- of which Africa, Asia and Oceania
2023
28,340
931
15,853
10,407
6
55,537
14,885
9,899
30,753
19,684
4
10,335
729
2022
28,355
931
15,735
8,534
6
53,561
14,683
9,293
29,585
17,827
1,020
9,532
1,206
Change
-0.1%
-
0.7%
21.9%
-
3.7%
1.4%
6.5%
3.9%
10.4%
-
8.4%
-39.6%
(15)
-
118
1,873
-
1,976
202
606
1,168
1,857
(1,016)
803
(477)
The increase of 1.98 GW in net efficient installed capacity
was affected by the additional renewables capacity (+4.03
GW), mainly in Latin America (+2.3 GW), North America
(+0.8 GW) and Spain (+0.6 GW), partially offset by the ef-
fects of plant sales, due to mergers and acquisitions in
Romania, Greece, Australia, Chile and India.
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2023
11,620
5,178
5,568
2,042
3,815
2022
9,167
3,477
3,779
1,970
2,230
5,345(1)
6,386(2)
Change
2,453
1,701
1,789
72
1,585
(1,041)
26.8%
48.9%
47.3%
3.7%
71.1%
-16.3%
(1) The figure does not include €565 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €42 million regarding units classified as held for sale or discontinued operations.
The following tables show a breakdown of performance by
geographical area in 2023.
170 Integrated Annual Report 2023
Revenue
Millions of euro
Italy
Iberia
Rest of the World
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
- area eliminations
Europe
- of which Romania
- of which Russia
- of which Greece
- of which other countries
Africa, Asia and Oceania
Rest of the World eliminations
Other
Eliminations and adjustments
Total
2023
3,248
1,217
7,127
5,109
28
846
2,570
1,108
258
201
98
1,612
1,379
233
-
161
-
-
160
1
255
(10)
299
(271)
11,620
2022
2,149
935
6,095
4,164
35
739
2,076
822
201
178
113
1,702
1,424
282
(4)
40
28
11
-
1
196
(7)
288
(300)
9,167
Change
1,099
282
1,032
945
(7)
107
494
286
57
23
(15)
(90)
(45)
(49)
4
121
(28)
(11)
160
-
59
(3)
11
29
2,453
51.1%
30.2%
16.9%
22.7%
-20.0%
14.5%
23.8%
34.8%
28.4%
12.9%
-13.3%
-5.3%
-3.2%
-17.4%
-
-
-
-
-
-
30.1%
-42.9%
3.8%
9.7%
26.8%
The increase in revenue is mainly attributable to the great-
er volumes of hydroelectric generation, above all in Italy and
Colombia, in addition to the greater quantities of solar gen-
eration by plants that came into operation during the year,
mainly in Latin America.
In 2023, the Group also recognized gains totaling €458 mil-
lion on the sale of certain plants in Chile (Arcadia project for
Ordinary gross operating profit/(loss)
€195 million) and, in the context of transactions conducted
under the Stewardship business model, the disposals of net
assets in Australia (€103 million, of which €24 million in capital
gain and €79 million for the remeasurement at fair value) and
in Greece (solely for the remeasurement at fair value in the
amount of €160 million).
Millions of euro
Italy
Iberia
Rest of the World
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 other countries
Africa, Asia and Oceania
Other
Total
2023
555
826
4,213
2,623
19
549
983
743
224
70
35
789
749
40
659
156
-
504
(1)
142
(26)
2022
(562)
631
3,697
2,372
21
506
798
674
203
102
68
988
907
81
244
140
18
88
(2)
93
13
Change
1,117
195
516
251
(2)
43
185
69
21
(32)
(33)
(199)
(158)
(41)
415
16
(18)
416
1
49
(39)
5,568
3,779
1,789
-
30.9%
14.0%
10.6%
-9.5%
8.5%
23.2%
10.2%
10.3%
-31.4%
-48.5%
-20.1%
-17.4%
-50.6%
-
11.4%
-
-
50.0%
52.7%
-
47.3%
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
171
The gross operating profit of €5,178 million (€3,477 mil-
lion at December 31, 2022) increased by €1,701 million
and includes the factors described in relation to ordinary
gross operating profit, with the exception of €262 mil-
lion relating to the capital gain on the sale in Greece of
assets classified as discontinued operations. In addition,
2023 included recognition of gains on the sale of certain
plants in Chile (€195 million), a loss on the sale of the El
Chocón generator sets in Argentina (€14 million), and the
charges related to the disposal of certain assets in the
United States in the amount of €60 million. In 2022, gross
operating margin included charges related to the disposal
of assets in Chile (€51 million).
The increase in ordinary gross operating profit in 2023,
which also includes an increase in gross operating prof-
it compared with 2022 (€259 million), the result of assets
classified as discontinued operations in Greece and Ro-
mania, is essentially attributable to the increase in renew-
able energy, particularly hydroelectric generation in Italy,
as well as the normalization of margins compared with
2022, a year that was characterized by significant price
instability.
We should also note the recognition of a total gain of €525
million due to the partial sales with loss of control of the
assets in Australia (€103 million) and the gain on the sale of
discontinued operations relating to the assets in Greece
(€422 million, including a capital gain of €262 million and
the remeasurement at fair value of €160 million).
These increases were partly offset in Italy by the greater
impact of the clawback (€357 million).
Ordinary operating profit/(loss)
Millions of euro
Italy
Iberia
Rest of the World
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 other countries
Africa, Asia and Oceania
Other
Total
2023
200
519
3,171
2,145
16
394
783
693
190
52
17
322
308
14
601
135
(2)
469
(1)
103
(75)
3,815
2022
(874)
373
2,744
1,942
14
378
625
625
168
83
49
594
541
53
190
123
14
55
(2)
18
(13)
2,230
Change
1,074
146
427
203
2
16
158
68
22
(31)
(32)
(272)
(233)
(39)
411
12
(16)
414
1
85
(62)
-
39.1%
15.6%
10.5%
14.3%
4.2%
25.3%
10.9%
13.1%
-37.3%
-65.3%
-45.8%
-43.1%
-73.6%
-
9.8%
-
-
50.0%
-
-
1,585
71.1%
Ordinary operating profit for 2023, up by €1,585 million
from 2022, reflects the improvement in operating perfor-
mance, partly offset by the increase in depreciation, amor-
tization and impairment losses of €204 million, mainly re-
lating to the entry into service of new plants during the
year.
Operating profit for 2023 came to €2,042 million, up €72
million (€1,970 million in 2022). The improvement in oper-
ating performance was partially offset by the different lev-
els of impairment losses in the two years compared. More
specifically, in 2023, operating profit includes impairment
losses on certain US assets (€1,268 million) recognized to
take account of a deterioration in the outlook of certain
reference markets that gradually emerged throughout
172
Integrated Annual Report 2023
2023, accompanied by a deterioration in the general mac-
roeconomic environment, as well as the launch and imple-
mentation by management of specific restructuring plans
in the country. An impairment loss was also recognized for
the Windpeshi project in Colombia (€171 million), as it was
classified as held for sale.
Capital expenditure
Millions of euro
Italy
Iberia
Rest of the World
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
1,645
782
2,899
1,866
1,023
-
10
19
2022
821
833
4,714
2,106
2,408
51
149
18
Change
824
(51)
(1,815)
(240)
(1,385)
(51)
(139)
1
5,345(1)
6,386(2)
(1,041)
-
-6.1%
-38.5%
-11.4%
-57.5%
-
-93.3%
5.6%
-16.3%
(1) The figure does not include €565 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €42 million regarding units classified as held for sale or discontinued operations.
Capital expenditure decreased by €1,041 million in 2023
compared with the same figure for the previous year. Spe-
cifically, this change is attributable to:
• decreased capital expenditure in the Rest of the World,
and specifically:
– lower capital expenditure in solar and wind farms in
the United States and Canada;
– a €240 million decrease in capital expenditure in
Latin America, mainly in solar plants in Chile and Peru
and in wind farms in Peru and Colombia, partly offset
by greater capital expenditure in Brazil;
– decreased capital expenditure in Africa, Asia and
Oceania, mainly related to the lower capital expendi-
ture in solar plants in India and wind and solar plants
in Australia;
• lower capital expenditure in wind farms in Iberia;
• greater capital expenditure in Italy, mainly in battery en-
ergy storage systems.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
173
174 Integrated Annual Report 2023
ENEL GRIDS
489.2 TWh
€7,851 million
€5,280 million(1)
ELECTRICITY TRANSPORTED ON
ENEL´S DISTRIBUTION GRID
ORDINARY GROSS
OPERATING PROFIT
CAPITAL
EXPENDITURE
507.5 TWh in 2022
€8,276 million in 2022
41.5% of total Group capital
expenditure
(1) The figure does not include €233 million regarding units classified as held for sale or discontinued operations.
Operations
Electricity distribution and transmission grid
Millions of kWh
Electricity transported on Enel’s distribution grid
- of which Italy(1)
- of which Iberia(1)
- of which Rest of the World(1)
- of which Latin America
- of which Europe(1)
2023
489,214
214,059
136,363
138,792
126,202
12,590
2022
507,524
220,379
131,677
155,468
139,921
15,547
Change
(18,310)
(6,320)
4,686
(16,676)
(13,719)
(2,957)
End users with active smart meters (no.)
45,172,959
45,824,963
(652,004)
(1) The figure for 2022 has been restated.
-3.6%
-2.9%
3.6%
-10.7%
-9.8%
-19.0%
-1.4%
In 2023, electricity transported on the grid decreased (by
3.6%), mainly attributable to:
• Europe (-19%) for the sale in October 2023 of all the in-
vestments held by the Enel Group in Romania;
• Brazil and Chile for, respectively, the sale in December
2022 of Celg Distribuição SA - Celg-D (Enel Goiás) and
of Enel Transmisión Chile SA;
• Italy (-2.9%), due to a decrease in demand for electricity.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
175
Average frequency of interruptions per customer
SAIFI (average no.)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania(1)
(1) The figure for 2022 has been restated.
Average duration of interruptions by customer
SAIDI (average minutes)
Italy(1)
Iberia(1)
Argentina
Brazil
Chile(1)
Colombia
Peru(1)
Romania(1)
(1) The figure for 2022 has been restated.
As shown in the tables above, service quality level im-
proved above all in Chile and Brazil and significant wors-
ened in Argentina due to adverse weather events in 2023.
Grid losses
Grid losses (average %)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
2023
2022
Change
1.7
1.2
7.9
3.7
1.2
4.6
2.7
2.1
1.6
1.3
5.3
4.5
1.6
3.9
2.9
2.6
0.1
(0.1)
2.6
(0.8)
(0.4)
0.7
(0.2)
(0.5)
2023
2022
Change
45.6
63.0
1,169.2
465.3
121.4
352.6
635.5
71.3
41.8
64.3
892.0
547.3
158.6
320.0
610.3
90.4
3.8
(1.3)
277.2
(82.0)
(37.2)
32.6
25.2
(19.1)
2023
2022
Change
4.7
6.8
16.8
13.1
5.3
7.5
8.7
8.3
4.7
7.0
17.1
13.5
5.1
7.5
8.2
8.5
-
(0.2)
(0.3)
(0.4)
0.2
-
0.5
(0.2)
6.2%
-7.7%
49.1%
-17.8%
-25.0%
17.9%
-6.9%
-19.2%
9.1%
-2.0%
31.1%
-15.0%
-23.5%
10.2%
4.1%
-21.1%
-
-2.9%
1.8%
-3.0%
3.9%
-
6.1%
-2.4%
176 Integrated Annual Report 2023
Performance
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2023
20,259
7,461
7,851
4,426
4,743
2022
23,032
9,114
8,276
5,332
5,254
5,280(1)
5,547(2)
Change
(2,773)
(1,653)
(425)
(906)
(511)
(267)
-12.0%
-18.1%
-5.1%
-17.0%
-9.7%
-4.8%
(1) The figure does not include €233 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €110 million regarding units classified as held for sale or discontinued operations.
The following tables show a breakdown of performance by
geographical area in 2023.
Revenue
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Eliminations and adjustments
Total
2023
7,610
2,379
10,228
10,227
560
6,321
1,590
823
933
1
402
(360)
20,259
2022
6,963
2,258
12,948
12,956
1,000
7,762
2,562
753
879
(8)
1,273
(410)
23,032
Change
647
121
(2,720)
(2,729)
(440)
(1,441)
(972)
70
54
9
(871)
50
(2,773)
9.3%
5.4%
-21.0%
-21.1%
-44.0%
-18.6%
-37.9%
9.3%
6.1%
-
-68.4%
12.2%
-12.0%
The decrease in revenue is mainly attributable to Brazil
and Chile due to the changes in the consolidation scope
relating, respectively, to the sales of Celg Distribuição SA
- Celg-D (Enel Goiás) and Enel Transmisión Chile SA which
took place in December 2022, and above all to the recog-
nition in 2022 of the gain on the sale of Enel Transmisión
Chile SA (€1,051 million). These negative effects were only
partially offset by the increase in revenue due to rate ad-
justments, especially in Italy and Brazil, in addition to the
increase in Spain in relation to the charges recognized in
2022 for rate adjustments for the years 2017 to 2019.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
177
Ordinary gross operating profit/(loss)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total
2023
3,589
1,668
2,598
2,284
(54)
1,496
102
517
223
314
(4)
2022
3,707
1,621
2,384
2,445
88
1,489
168
487
213
(61)
564
7,851
8,276
Change
(118)
47
214
(161)
(142)
7
(66)
30
10
375
(568)
(425)
-3.2%
2.9%
9.0%
-6.6%
-
0.5%
-39.3%
6.2%
4.7%
-
-
-5.1%
Ordinary gross operating profit, which takes account of
the increase in the result on assets classified as discon-
tinued operations (€362 million), decreased by €425 mil-
lion. This change is mainly attributable to the recognition
in 2022 of the gain on the sale of 50% of the stake held by
Enel Grids in Gridspertise (€520 million), to changes in the
consolidation scope (a total of €250 million) mainly due to
the sales of Enel Transmisión Chile and Celg Distribuição
SA - Celg-D (Enel Goiás), to the increase in service quality
indemnities (€118 million), and to the increased costs for
plant maintenance following adverse weather events in It-
aly (€61 million). These effects were partially offset by the
rate adjustments recognized in Brazil, Italy and Romania.
Gross operating profit came to €7,461 million, a decrease
of €1,653 million from the €9,114 million posted in 2022.
This change is essentially attributable to the net gains
(€1,359 million) recognized in 2022 on the sales of Grid-
spertise, Enel Transmisión Chile and Celg Distribuição SA
- Celg-D (Enel Goiás), as well as to the negative impacts
of the related changes in the consolidation scope (€250
million), the increased costs for service quality indemni-
ties (€118 million), and the higher maintenance costs in re-
sponse to hazardous weather events in Italy (€61 million).
These impacts were only partially offset by the rate adjust-
ments recorded in Brazil and Italy.
178 Integrated Annual Report 2023
Ordinary operating profit/(loss)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe
Other
Total
The decrease of €511 million in ordinary operating prof-
it for 2023 essentially reflects the factors described in
relation to ordinary gross operating profit, as well as the
greater depreciation due to the new capital expenditure
made in Italy on distribution grids.
Capital expenditure
Millions of euro
Italy
Iberia
Rest of the World
Latin America
Europe
Other
Total
2023
2,139
872
1,738
1,496
(109)
980
51
424
150
242
(6)
4,743
2022
2,357
815
1,528
1,671
52
975
109
391
144
(143)
554
5,254
Change
(218)
57
210
(175)
(161)
5
(58)
33
6
385
(560)
(511)
-9.2%
7.0%
13.7%
-10.5%
-
0.5%
-53.2%
8.4%
4.2%
-
-
-9.7%
Operating profit amounted to €4,426 million in 2023, a
decrease of €906 million on 2022 (€5,332 million). This
change is attributable to the effects noted above in rela-
tion to gross operating profit, as well as to the increased
depreciation and amortization in Italy, which were partially
offset by the recognition in 2022 of the impairment on the
assets of Celg Distribuição SA - Celg-D (Enel Goiás) in the
amount of €827 million.
2023
3,084
885
1,287
1,287
-
24
2022
2,714
860
1,949
1,809
140
24
5,280(1)
5,547(2)
Change
370
25
(662)
(522)
(140)
-
(267)
13.6%
2.9%
-34.0%
-28.9%
-
-
-4.8%
(1) The figure does not include €233 million regarding units classified as held for sale or discontinued operations.
(2) The figure does not include €110 million regarding units classified as held for sale or discontinued operations.
Capital expenditure in the two years being compared de-
creased by €267 million, mainly attributable to Latin Amer-
ica, and in particular to Brazil due to the sale of Celg Dis-
tribuição SA - Celg-D (Enel Goiás) in December 2022. This
reduction was partially offset in Italy by the increase in the
activation of new customers and by the improvement in
service quality.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
179
180 Integrated Annual Report 2023
END-USER MARKETS
300.8 TWh
ELECTRICITY
SALES
321.1 TWh in 2022
€5,275 million
61.1 million
ORDINARY GROSS
OPERATING PROFIT(1)
€1,702 million in 2022
RETAIL
CUSTOMERS
of which 24.3 million in the free
market
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Operations
Electricity sales
Millions of kWh
Free market
Regulated market
Total
- of which Italy
- of which Iberia
- of which Rest of the World
- of which Latin America
- of which Europe
2023
194,541
106,313
2022
198,254
122,854
Change
(3,713)
(16,541)
300,854
321,108
(20,254)
87,239
77,689
135,926
129,177
6,749
97,195
79,003
144,910
135,094
9,816
(9,956)
(1,314)
(8,984)
(5,917)
(3,067)
-1.9%
-13.5%
-6.3%
-10.2%
-1.7%
-6.2%
-4.4%
-31.2%
The lower volumes of electricity sold in 2023 are mainly
concentrated on the regulated market in Brazil (-9.7 TWh)
due to the sale of Celg Distribuição SA - Celg-D (Enel
Goiás) at the end of 2022 and in Italy (-6.8 TWh) for the
transition of customers to the free market, due in part to
the pending elimination of the enhanced protection mar-
ket, set for June 2024 as per Resolution no. 600/2023.
With regard to the performance of the free market, there
was a decrease in volumes mainly in Italy (-3.1 TWh) and
in Spain (-0.6 TWh), partially offset by the increase seen in
Brazil (+2.2 TWh) and Chile (+0.6 TWh).
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
181
Natural gas sales
Millions of m3
Business to consumer
Business to business
Total
- of which Italy
- of which Iberia
- of which Rest of the World
- of which Latin America
- of which Europe
2023
3,502
4,822
8,324
4,149
3,802
373
185
188
2022
3,910
6,333
10,243
4,726
4,909
608
342
266
Change
(408)
(1,511)
(1,919)
(577)
(1,107)
(235)
(157)
(78)
-10.4%
-23.9%
-18.7%
-12.2%
-22.6%
-38.7%
-45.9%
-29.3%
The decrease in the volume of gas sold in 2023 mainly
came in Italy and Spain. Both business-to-business (B2B)
and business-to-consumer (B2C) customer segments
showed lower sales volumes compared with 2022.
Demand response, storage and lighting points
Demand response capacity (MW)
Lighting points (thousands)
Storage (MW)
Public charging points (no.)(1)
2023
9,588
3,259
1,730
2022
8,476
3,023
760
24,281
22,112
Change
1,112
236
970
2,169
13.1%
7.8%
-
9.8%
(1)
It should be noted that the figures shown, if they also included the charging points of joint ventures, would amount to 25,337 at December 31, 2023, and
22,617 at December 31, 2022.
Demand response capacity increased mainly in Japan
(+494 MW), North America (+273 MW), and Italy (+256
MW). Lighting points, which concern the implementation
of intelligent and energy-saving public lighting, increased
mainly in Italy, Spain, Brazil and Chile, while storage in-
creased above all in North America, essentially due to the
installation of new batteries at renewable energy plants.
Performance(1)
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2023
52,119
5,158
5,275
3,042
3,241
2022
64,350
1,802
1,702
(93)
(210)
1,138(2)
1,205(3)
Change
(12,231)
-19.0%
3,356
3,573
3,135
3,451
(67)
-
-
-
-
-5.6%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
(2) The figure does not include €34 million regarding units classified as held for sale or discontinued operations.
(3) The figure does not include €2 million regarding units classified as held for sale or discontinued operations.
182 Integrated Annual Report 2023
The following tables show a breakdown of performance by
geographical area in 2023.
Revenue(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Africa, Asia and Oceania
Rest of the World eliminations
Other
Eliminations and adjustments
Total
2023
28,717
20,747
2,644
2,157
5
545
197
1,040
370
-
331
76
84
(4)
212
(201)
52,119
2022
33,351
28,114
2,522
2,071
13
543
192
1,002
321
-
312
89
70
(20)
553
(190)
64,350
Change
(4,634)
(7,367)
122
86
(8)
2
5
38
49
-
19
(13)
14
16
(341)
(11)
(12,231)
-13.9%
-26.2%
4.8%
4.2%
-61.5%
0.4%
2.6%
3.8%
15.3%
-
6.1%
-14.6%
20.0%
80.0%
-61.7%
-5.8%
-19.0%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Revenue for 2023 decreased by 19.0% from the previous
year, mainly due to a decline in revenue from electricity
sales (down €8,786 million) and gas sales (down €3,188
million) as a result of both the lower quantities of electric-
ity and gas sold and the decreasing average sales prices,
mainly in Italy and Spain. The decrease in other revenue
was due to the recognition, in 2022, of the gains on the
sale of the 1.1% investment in Ufinet by Enel X International
(€220 million) and on the sale of certain assets by Enel Srl
to Mooney (€67 million). Revenue from the sale of elec-
tricity in Latin America increased, mainly in Colombia and
Peru.
Ordinary gross operating profit/(loss)(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
4,039
780
460
424
5
220
75
79
45
-
(11)
50
(3)
(4)
5,275
2022
531
417
445
560
35
237
83
151
54
-
(24)
(81)
(10)
309
1,702
Change
-
87.1%
3.4%
-24.3%
-85.7%
-7.2%
-9.6%
-47.7%
-16.7%
-
54.2%
-
70.0%
-
-
3,508
363
15
(136)
(30)
(17)
(8)
(72)
(9)
-
13
131
7
(313)
3,573
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
183
Ordinary gross operating profit for 2023 increased main-
ly following the increase of €3,508 million in Italy and of
€363 million in Spain, due to the improved performance
on the free market due mainly to the reduction in procure-
ment costs in a context of normalizing sales prices.
The increase in ordinary gross operating profit in Europe is
entirely attributable to the performance of the Romanian
assets classified as discontinued operations.
Performance also improved in the e-Home, e-City, and De-
mand Response businesses.
These positive effects were only partially offset by the de-
crease in profits in Latin America, in the amount of €136
million, particularly in Colombia in the Retail segment and
for the e-Bus project, as well as for the aforementioned
Ordinary operating profit/(loss)(1)
Millions of euro
gains recognized in 2022 on the sale of the investment in
Ufinet (€220 million) and of certain other investments to
Mooney (€67 million).
Gross operating profit came to €5,158 million (€1,802 mil-
lion in 2022). The increase of €3,356 million reflects the
improved performance on the free market, mainly due to
the reduction in procurement costs in a context of nor-
malizing sales prices.
These effects do not take into account the results of dis-
continued operations and the charges related to the ener-
gy transition and digitalization relating to the adjustment
of the fund Acuerdo Voluntario de Salida (AVS) in Spain.
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
2,987
268
74
132
(5)
10
57
44
26
-
(53)
4
(9)
(88)
3,241
2022
(633)
84
76
279
19
44
59
115
42
-
(77)
(111)
(15)
263
(210)
Change
3,620
184
(2)
(147)
(24)
(34)
(2)
(71)
(16)
-
24
115
6
(351)
3,451
-
-
-2.6%
-52.7%
-
-77.3%
-3.4%
-61.7%
-38.1%
-
31.2%
-
40.0%
-
-
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
The change in the ordinary operating profit reflects the
factors noted above in relation to ordinary gross operating
profit, in addition to the greater depreciation, amortiza-
tion and impairment losses in the amount of €122 million,
mainly attributable to the amortization and the greater
write-downs of trade receivables in the amount of €89
million, mainly in Spain and Brazil.
Operating profit for 2023, in the amount of €3,042 million
(a loss of €93 million in 2022), reflects the factors noted
above in relation to gross operating profit, as well as the
greater depreciation, amortization and impairment losses
of €221 million. This change also includes the impairment
losses recognized in the United States in 2023 by Enel
X Way in the amount of €69 million and by Enel X in the
amount of €57 million, due above all to the deterioration in
the macroeconomic environment.
184 Integrated Annual Report 2023
Capital expenditure(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
566
311
164
84
69
2
9
97
2022
582
324
190
80
76
19
15
109
1,138(2)
1,205(3)
Change
(16)
(13)
(26)
4
(7)
(17)
(6)
(12)
(67)
-2.7%
-4.0%
-13.7%
5.0%
-9.2%
-89.5%
-40.0%
-11.0%
-5.6%
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
(2) The figure does not include €34 million regarding units classified as held for sale or discontinued operations.
(3) The figure does not include €2 million regarding units classified as held for sale or discontinued operations.
The decrease in capital expenditure in Italy and Spain is
essentially attributable to a reduction in customer acqui-
sition efforts, only partially offset by greater capital expen-
diture in Italy in the e-City business and in Latin America in
the Distributed Energy business.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
185
186 Integrated Annual Report 2023
HOLDING AND SERVICES
Performance(1)
Millions of euro
Revenue
Gross operating profit/(loss)
Ordinary gross operating profit/(loss)
Operating profit/(loss)
Ordinary operating profit/(loss)
Capital expenditure
2023
2,045
(609)
(319)
(858)
(569)
190(2)
2022
2,050
(180)
(168)
(409)
(398)
219
Change
(5)
(429)
(151)
(449)
(171)
(29)
-0.2%
-
-89.9%
-
-43.0%
-13.2%
(1) The figures for 2022 have been restated to include Enel X Way in the End-user Markets Business Line, as they were previously shown among Holding, Ser-
vices and Other.
(2) The figure does not include €3 million regarding units classified as held for sale or discontinued operations.
The following tables show a breakdown of performance by
geographical area in 2023.
Revenue(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
North America
Europe
Other
Eliminations and adjustments
Total
2023
734
501
-
-
-
-
1,028
(218)
2,045
2022
729
488
-
(1)
1
-
1,041
(208)
2,050
Change
5
13
-
1
(1)
-
(13)
(10)
(5)
0.7%
2.7%
-
-
-
-
-1.2%
-4.8%
-0.2%
(1) The figures for 2022 have been restated to include Enel X Way in the End-user Markets Business Line, as they were previously shown among Holding, Ser-
vices and Other.
Revenue for 2023 is essentially in line with 2022 and mainly
refer to IT services, management fees, personal services,
vehicle management, contract work, rental fees and other
services provided to the other business lines.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
187
Ordinary gross operating profit/(loss)(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Peru
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
56
39
(132)
(132)
(5)
(37)
(89)
(1)
(2)
2
-
(282)
(319)
2022
89
(5)
(119)
(117)
(3)
(23)
(91)
-
(2)
-
-
(133)
(168)
Change
(33)
44
(13)
(15)
(2)
(14)
2
(1)
-
2
-
(149)
(151)
-37.1%
-
-10.9%
-12.8%
-66.7%
-60.9%
2.2%
-
-
-
-
-
-89.9%
(1) The figures for 2022 have been restated to include Enel X Way in the End-user Markets Business Line, as they were previously shown among Holding, Ser-
vices and Other.
The increase in the ordinary gross operating loss in 2023
is mainly attributable to the increased provisions for risks
and charges set aside by Enel Insurance following requests
related to adverse weather conditions.
The gross operating loss increased from 2022 as a result
of the factors noted in relation to ordinary gross operating
profit and the extraordinary solidarity levy and the charges
for the energy transition and digitalization in Spain, of
€208 million and €81 million respectively.
Ordinary operating profit/(loss)(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Peru
North America
Europe
Africa, Asia and Oceania
Other
Total
2023
(12)
(5)
(143)
(142)
(5)
(42)
(93)
(2)
(2)
1
-
(409)
(569)
2022
20
(39)
(122)
(120)
(3)
(26)
(91)
-
(1)
(1)
-
(257)
(398)
Change
(32)
34
(21)
(22)
(2)
(16)
(2)
(2)
(1)
2
-
(152)
(171)
-
87.2%
-17.2%
-18.3%
-66.7%
-61.5%
-2.2%
-
-
-
-
-59.1%
-43.0%
(1) The figures for 2022 have been restated to include Enel X Way in the End-user Markets Business Line, as they were previously shown among Holding, Ser-
vices and Other.
The ordinary operating loss for 2023 is essentially in line
with the increase in the ordinary gross operating loss, tak-
ing account of the €20 million increase in depreciation,
amortization and impairment losses.
The operating loss for 2023 reflects the factors described
in relation to the gross operating loss, as well as higher
depreciation, amortization and impairment in the amount
of €20 million.
188 Integrated Annual Report 2023
Capital expenditure(1)
Millions of euro
Italy
Iberia
Rest of the World
Latin America
North America
Europe
Other
Total
2023
74
21
8
8
-
-
87
190(2)
2022
115
27
5
5
-
-
72
219
Change
(41)
(6)
3
3
-
-
15
(29)
-35.7%
-22.2%
60.0%
60.0%
-
-
20.8%
-13.2%
(1) The figures for 2022 have been restated to include Enel X Way in the End-user Markets Business Line, as they were previously shown among Holding, Ser-
vices and Other.
(2) The figure does not include €3 million regarding units classified as held for sale or discontinued operations.
The decrease in capital expenditure in 2023 in Italy is
mainly attributable to reduced capital expenditure by Enel
Italia SpA for the redevelopment of its headquarters in
Rome.
Performance by primary segment (Business Line) and secondary segment (Geographical Area)
189
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)(1)
Group ordinary profit per share (euro)(1)
Dividend per share (euro)
Group equity per share (euro)(1)
Share price – 12-month high (euro)
Share price – 12-month low (euro)
Average share price in December (euro)
Market capitalization (millions of euro)(2)
2023
1.99
1.07
0.34
0.64
0.430
3.12
6.73
5.17
6.63
2022
1.96
1.10
0.17
0.53
0.40
2.82
7.20
4.00
5.15
67,369
52,325
(1) The number of shares considered to calculate the index is 10,166,679,946 and includes 9,262,330 treasury shares in 2023 and 7,153,795 treasury shares in
2022.
(2) Calculated on average share price in December.
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
at Dec. 31, 2023
at Dec. 31, 2022
STABLE
NEGATIVE
BBB
A-2
BBB+
A-2
NEGATIVE
NEGATIVE
Baa1
-
STABLE
BBB+
F2
Baa1
-
STABLE
BBB+
F2
The global macroeconomic environment in 2023 was
characterized by a broad decline in the real economy. The
restrictive monetary policy stances adopted by central
banks to counter inflationary pressures, the deteriora-
tion in financial and credit conditions, and the decline in
trade and investment at the global level caused a slow-
down in global growth, with GDP estimated to have grown
by around 3% on an annual basis (slightly down compared
with 2022).
In this context, the main European stock indices – after a
2022 characterized by a general decline – closed 2023 on
the rise: FTSE-MIB +28%, Ibex35 +22.8%, DAX +20.3% and
CAC40 +16.5%.
The euro area utilities index (EURO STOXX Utilities) closed
the year with a gain of +11.9%.
Finally, as regards the Enel stock, 2023 ended with a price
of €6.73 per share, a sharp rise (+33.8%) on the previous
year, outperforming both the Italian index and the Europe-
an sectoral index.
On January 25, 2023 Enel paid an interim dividend of €0.20
per share from 2022 profits and on July 26, 2023 it paid
the balance of the dividend for that year in the amount
of €0.20. Total dividends distributed in 2023 amounted to
€0.40 per share, more than 5% higher than the €0.38 per
share distributed in 2022.
On January 24, 2024 an interim dividend of €0.215 per
share was paid in respect of ordinary profit for 2023, while
the balance of the dividend is scheduled for payment on
July 24, 2024.
190 Integrated Annual Report 2023
At December 31, 2023, institutional investors represent-
ed 58.6% of share capital (up from 56.7% at December 31,
2022), while the share of individual investors came to 17.8%
(as against 19.7% at December 31, 2022). The interest of
the Ministry for the Economy and Finance was unchanged
at 23.6%.
Socially responsible investors (SRIs) expanded their in-
terest to about 17.5% of share capital at December 31,
2023 (up from 14.9% at December 31, 2022) and repre-
sent 29.8% of institutional investors (26.2% at December
31, 2022). Investors who have signed the Principles for
Responsible Investment represent 42.8% of share capital
(42.1% at December 31, 2022).
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 releas-
es, outstanding bonds, bond issue programs, composi-
tion of Enel’s corporate bodies, bylaws and regulations of
Shareholders’ Meetings, information and documentation
relating to Shareholders’ Meetings, procedures and oth-
er documentation concerning corporate governance, the
Code of Ethics and organizational and management ar-
rangements).
For further information we invite you to visit the Investor
Relations section of our corporate website (https://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
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 institutional
investors (phone: +39-0683057975; e-mail: investor.rela-
tions@enel.com).
PERFORMANCE OF ENEL SHARE PRICE AND THE EURO STOXX UTILITIES AND FTSE-MIB INDICES
FROM JANUARY 1, 2023 TO DECEMBER 31, 2023
140.0
130.0
120.0
110.0
100.0
90.0
80.0
70.0
1 - Jan- 23
1 - Feb - 23
1 - M ar - 23
1 - A pr - 23
1 - M ay - 23
1 - Jun - 23
1 - Jul - 23
1 - Aug - 23
1 - Sep - 23
1 - O ct - 23
1 - N ov - 23
1 - Dec - 23
Enel
FTSE-MIB
EURO STOXX Utilities
Source: Bloomberg.
Enel shares
191
INNOVATION
During 2023, the innovation area was given a new organi-
zational structure that, in line with Group strategy, oper-
ates with a view to simplification and focus on the Group’s
priorities and promotion of an integrated, efficient and ef-
fective approach to innovation.
To address business challenges, we adopt an open inno-
vation model, which enables us to connect all areas of the
Company with startups, industrial partners, large compa-
nies, small and medium-sized enterprises (SMEs), research
centers, universities and entrepreneurs – drawing in part on
crowdsourcing platforms. The Group’s innovation strategy
exploits various tools that enable it to develop innovative
and sustainable solutions, such as the online crowdsourc-
ing platform openinnovability.com and a global network
of Innovation Hubs and Labs, which forms the foundation
of the collaboration model with startups and SMEs. While
the latter offer innovative projects and new business mod-
els, Enel provides its expertise, facilities for the technical
and financial validation of the proposed solutions in an
industrial environment, and a global network of partners
to support their development and possible scale-up. The
Innovation Hubs, located in the most relevant innovation
ecosystems for the Group, such as Europe and the United
States, manage relationships with all the players involved
in their respective areas and constitute the main source of
scouting for startups and SMEs, responding to the innova-
tion needs manifested by the business lines.
Collaboration with external players is thus a key element
of the Group’s innovation strategy. In fact, the Company
has active partnership agreements which cover both the
most strategic areas for the Group and those address-
ing major frontier issues (for example, the promotion of
space applications in the energy sector, green hydrogen,
and fourth generation nuclear). Through co-development
with suppliers, the Group also seeks to implement innova-
tive solutions quickly and effectively at the pre-commer-
cial development level and leverages existing skills and the
customization and transfer of solutions already adopted in
other productive sectors.
In 2022, we voluntarily adopted the ISO 56002 standard
113
46
Proofs of Concept
launched to test
innovative solutions
in 2023
solutions in scale-up
phase in the business
in 2023
for innovation management. The standard covers all as-
pects of innovation management, from the birth of an idea
to its implementation on a global scale. During 2023, the
UNI/PdR 155 practice “Management of sustainable inno-
vation – Guidelines for the management of sustainable
innovation processes in companies through open innova-
tion” was developed in collaboration with UNI. The practice
was published on the UNI website in December 2023. The
document, of a pre-regulatory nature, is intended to offer
practical support for any organization that wants to pur-
sue the organizational and production changes necessary
to implement an effective internal process of sustainable
innovation management.
2023 saw the continuation of the activities of the inno-
vation communities, multidisciplinary working groups cre-
ated to innovatively address the most relevant new-tech-
nology issues for the business in order to create value for
the Group (energy storage, blockchain, drones, metaverse,
robotics, sensors, 3D printing, quantum computing, wear-
ables, additive manufacturing, artificial intelligence, mate-
rials and hydrogen). The communities also continuously
monitor technological improvements and share new busi-
ness models, value-added services or use cases for types
of technology that could be potentially implemented in
different areas of the Enel Group.
During 2023, 113 Proofs of Concepts were launched to
test new solutions, while 46 innovative solutions were
identified by the business for large-scale implementation.
Overall, €60 million (including personnel expenses) were
invested in innovation.
192 Integrated Annual Report 2023
Digitalization
In 2023, innovation activities in the field of cyber security
benefited from the network of Innovation Hubs, as well as
from their portfolio of startups and partnerships forged at
the Group level.
These interconnections have enabled the sharing of best
practices and operating models, as well as the construc-
tion and enhancement of info-sharing channels.
The main initiatives in this area are reported below:
• analysis of solutions based on quantum key distribu-
tion(41) and quantum safe encryption algorithms(42) to
improve understanding of how to go beyond current en-
cryption models threatened by the future expansion of
computational capacity offered by quantum computing;
• services and solutions to support software develop-
ment to analyze open source code and third-party
software libraries from the point of view of vulnerabili-
ties and user licenses;
• analysis of browser isolation solutions (isolation of the
browser from the network to prevent it from becoming
an entry point for malicious actors) and browser secu-
rity to understand the resilience of central protection
techniques compared with distributed approaches;
• further development of solutions that exploit emerging
technologies such as artificial intelligence and machine
learning to enhance capabilities in detecting IT threats
and automating the process of analysis, correlation and
response to incidents;
• solutions for identifying vulnerabilities of assets and
devices (IoT, web applications, etc.) with the help of in-
novative techniques;
• review of industrial environments through the imple-
mentation of a vulnerability identification process with
scripts without impacting the operating environments;
• a study for the implementation of a multifactor authen-
tication system for company systems, using a “pass-
wordless” technique to replace the password with al-
ternative secure solutions (for example, fingerprint au-
thentication);
• analysis and scouting of solutions for the anonymiza-
tion and masking of data in non-production environ-
ments and definition of the associated policy;
• analysis of solutions to prevent data loss to ensure
compliance with protection requirements imposed by
internal and external regulations;
• study and analysis of solutions for the management of
cryptographic keys and business secrets;
• analysis of new anti-malware solutions to protect in-
dustrial environments;
• creation of the Cyber Harbor, an innovation center that
brings together cyber security experts, companies, in-
vestors and the academic world to foster the creation
of innovative and competitive projects in the IT security
field for Italy;
• establishment of a communication channel with Italy’s
National Cybersecurity Authority (NCA) for the creation
of the Hyper SOC, an infrastructure for the aggrega-
tion, correlation and analysis of events of interest to
ensure the early identification of emerging threats and
coordinate responses to deal with them effectively.
(41) Cryptographic technique for distributing symmetrical keys based on the principles of quantum physics.
(42) Encryption protocols based on algorithms and characteristics considered sufficiently secure against threats posed by the computational capacity of quan-
tum computers.
Innovation
193
The circular economy
For the Group, the circular economy is a strategic lever to
support our decarbonization roadmap. It involves a steady
expansion of energy production from renewable sources
and the consequent abandonment of fossil fuels, offering
a path towards a fair and inclusive transition. Achieving
these objectives requires a profound transformation of
the energy system and, at the same time, entails a dif-
ferent and growing need for raw materials and new ap-
proaches to managing assets, such as the distribution grid
and generation plants.
The circular economy model adopted by the Group seeks
to redesign the entire value chain of the goods used, not
only to reduce consumption of raw materials but also to
limit the associated environmental, social, economic and
geopolitical impacts and risks: in other words, to make the
business model more sustainable and competitive. The
Group’s vision encompasses all the different life phases
of a product and is based on five pillars: circular inputs
(inputs from renewables, recycling, reuse), extension of
useful life (through modular design, facilitated repairabil-
ity and maintenance predictive), product as a service (the
Company provides the customer with a service and re-
tains ownership of the product, maximizing its use factor
and useful life), shared platforms (shared use of an asset
among multiple users), new life cycles (recovery of the val-
ue of goods and materials, for example through reuse and
recycling).
Y
R
E
V
O
C
E
VA L U E R
CIR
C
U
L
A
R
D
E
S
I
G
N
NEW LIFE CYCLES
Any solution to preserve the value of
an asset at the end of a life cycle
through reuse, regeneration,
upcycling or recycling, in
conjunction with the other pillars.
CIRCULAR INPUTS
Production and use model
based on renewable inputs
or previous life cycles
(reuse and recycling).
SHARED
PLATFORMS
Management systems shared
among multiple users of
products, assets, or skills.
USEFUL LIFE
EXTENSION
Approach to the design
and management of an
asset or product in order
to extend its useful life,
e.g., through modular
design, facilitated
reparability, or predictive
maintenance.
PRODUCT AS A SERVICE
Business model where the customer
purchases a service for a limited time,
while the company retains ownership
of the product, maximising its use
factor and useful life.
CIRCUL A R U S E
194 Integrated Annual Report 2023
The Group’s initiatives focus mainly on three of the five pil-
lars, namely circular inputs, useful life extension and new
life cycles.
With regard to circular inputs, during the tender phase
suppliers of core components(43) are asked to specify the
quantities of each material used in the production pro-
cesses, indicating the share of recycled and recyclable
material to support assessments in the selection phase.
One example of the reduction in the use of input resourc-
es is the 3SUN Gigafactory project in Catania, which is in-
tended to ensure greater independence for the photovol-
taic supply chain, not only by bringing the production of
cells and panels onto European soil, but also by using in-
novation to reduce the intensity of silicon use and building
a diversified and sustainable supply chain. In 2023 3SUN
worked on the development of the new production site
and, from 2024, a new type of high-efficiency panel with
HJT technology will optimize the quantity of silicon used,
using layers of the material with a 15% smaller thickness.
With regard to extending useful life, in addition to using
predictive repair and maintenance in the global manage-
ment of power distribution and generation assets, the
Group is also working on innovative solutions. For example,
the Pioneer project in Italy involves Enel collaborating with
ADR - Aeroporti di Roma on the development of a storage
system that reuses end-of-life batteries from electric ve-
hicles. During 2023, the detailed design of the plant was
completed: with a storage capacity of 10 MWh, it involves
the reuse of 786 second-life batteries.
With regard to the new life cycle pillar, initiatives are also
under way in all the countries in which the Group operates
to ensure the systematic reuse, both internally and through
sale, of obsolete or unused generation equipment that still
retains a useful residual life, or the recycling of materials
recovered from maintenance activities on the distribution
grid. Specifically, the Equipment New Life Program, which
is active around the world for all generation technologies,
seeks to give new life to components held in power plant
inventories, to the equipment of decommissioned power
plants and to plants undergoing repowering. In 2023, the
project generated approximately €23 million in econom-
ic value, of which approximately €13.8 million in the form
of costs avoided through the internal reuse of spare parts
and equipment in all plants and €9.2 million from sales.
In order to identify areas requiring attention and related
priorities concerning materials, and to consequently up-
date the portfolio of projects and initiatives, an internal
working group has been operating since 2020 with the
participation of all the relevant areas of the Group. The
working group’s activities begin with a systematic analysis
of raw material requirements for generation and distri-
bution assets, solutions for customers and digital assets.
Environmental, social, economic and geopolitical impacts
and risks are then assessed, mainly with respect to the ex-
traction and production phases of raw materials. Interven-
tion priorities are then identified and a mitigation plan is
developed, leveraging circular economy projects that re-
duce the consumption of raw materials, particularly critical
materials.
(43) The core categories are those strategic for the business, including wind turbines, inverters, smart meters, photovoltaics, switches, panels, cables, trans-
formers, charging stations, street lighting, smart home solutions and storage systems.
Innovation
195
PEOPLE
CENTRICITY
People management and development at Enel
The Enel Group workforce at December 31, 2023 num-
bered 61,055 (65,124 at December 31, 2022). The contrac-
tion of 4,069 in the Group workforce in 2023 reflects nega-
tive balance between new hires and terminations during the
period (-201) plus the negative impact of the change in the
consolidation scope (-3,868), which included:
• the sale of Enel Generación Costanera SA in Argentina;
• the sale of Central Dock Sud SA in Argentina;
• the sale of Usme ZE SAS and Fontibón ZE SAS in Co-
lombia;
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
- Rest of the World
- Latin America
- Europe
- North America
- Africa, Asia and Oceania
196 Integrated Annual Report 2023
• the sale of Avikiran Solar India Private Limited in India;
• the sale of Enel Green Power Australia in Australia;
• the sale of all companies in Romania;
• the sale of Enel Green Power Hellas and all companies
in Greece.
The following tables analyze the number and variation in
employees by gender, age group, job classification and
geographical area. An analysis by business line is also pro-
vided for the number of employees only.
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
%
%
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2023
61,055
47,202
77.3
13,853
22.7
61,055
7,661
12.5
35,111
57.6
18,283
29.9
61,055
2.1
20.3
51.3
26.3
61,055
31,470
51.5
9,504
15.6
20,081
28.6
17,471
28.6
139
0.2
1,747
2.9
724
1.2
2022
65,124
49,899
76.6
15,225
23.4
65,124
8,543
13.1
36,795
56.5
19,786
30.4
65,124
2.1
19.4
53.2
25.3
65,124
31,664
48.6
9,643
14.8
17,361
26.7
17,361
26.7
3,532
5.4
2,100
3.2
824
1.3
Change
(4,069)
(2,697)
0.7
(1,372)
-0.7
(4,069)
(882)
-0.6
(1,684)
1.1
(1,503)
-0.5
(4,069)
-
0.9
-1.9
1.0
(4,069)
(194)
2.9
(139)
0.8
110
1.9
110
1.9
(3,393)
-5.2
(353)
-0.3
(100)
-0.1
-6.2%
-5.4%
0.9%
-9.0%
-3.0%
-6.2%
-10.3%
-4.6%
-4.6%
1.9%
-7.6%
-1.6%
-6.2%
-
4.6%
-3.6%
4.0%
-6.2%
-0.6%
6.0%
-1.4%
5.4%
0.6%
7.1%
0.6%
7.1%
-96.1%
-96.3%
-16.8%
-9.4%
-12.1%
-7.7%
Workforce by business line
No.
Thermal Generation and Trading
Enel Green Power
Enel Grids
End-user Markets
Holding and Services
Total continuing operations
Total discontinued operations
TOTAL
Change in workforce
Balance at December 31, 2022
Hirings
Terminations
Change in the consolidation scope
Balance at December 31, 2023
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
- Rest of the World
- Latin America
- Europe
- North America
- Africa, Asia and Oceania
at Dec. 31,
2023
at Dec. 31,
2022
Percentage of total
continuing operations
at Dec. 31, 2023
Percentage of total
continuing operations
at Dec. 31, 2022
5,725
8,891
30,946
8,926
6,567
61,055
-
61,055
6,447
9,397
30,262
8,293
7,325
61,724
3,400
65,124
9.3%
14.6%
50.7%
14.6%
10.8%
10.4%
15.2%
49.0%
13.5%
11.9%
100.0%
100.0%
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2023
6.3
3,837
3,153
82.2
684
17.8
3,837
1,627
42.4
2,054
53.5
156
4.1
3,837
1,036
27.0
395
10.3
2,406
62.7
1,921
50.1
104
2.7
253
6.6
128
3.3
2022
9.8
6,412
4,356
67.9
2,056
32.1
6,412
3,359
52.4
2,905
45.3
148
2.3
6,412
2,866
44.7
741
11.6
2,805
43.7
1,542
24.0
443
6.9
614
9.6
206
3.2
65,124
3,837
(4,038)
(3,868)
61,055
-35.7%
-40.2%
-27.6%
21.1%
-66.7%
-44.5%
-40.2%
-51.6%
-19.1%
-29.3%
18.1%
5.4%
78.3%
-40.2%
-63.9%
-39.6%
-46.7%
-11.2%
-14.2%
43.5%
24.6%
-
-76.5%
-60.9%
-58.8%
-31.3%
-37.9%
3.1%
Change
-3.5
(2,575)
(1,203)
14.3
(1,372)
-14.3
(2,575)
(1,732)
-10.0
(851)
8.2
8
1.8
(2,575)
(1,830)
-17.7
(346)
-1.3
(399)
19.0
379
26.1
(339)
-4.2
(361)
-3.0
(78)
0.1
People centricity
197
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
- Rest of the World
- Latin America
- Europe
- North America
- Africa, Asia and Oceania
%
no.
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2023
6.6
4,038
3,093
76.6
945
23.4
4,038
497
12.3
1,804
44.7
1,737
43.0
4,038
1,230
30.5
534
13.2
2,724
56.3
1,348
33.4
174
4.3
606
15.0
146
3.6
2022
6.8
4,414
3,391
76.8
1,023
23.2
4,414
655
14.8
1,759
39.9
2,000
45.3
4,414
1,224
27.7
578
13.1
2,612
59.2
1,534
34.8
454
10.3
428
9.7
196
4.4
Change
-0.2
(376)
(298)
-0.2
(78)
0.2
(376)
(158)
-2.5
45
4.8
(263)
-2.3
(376)
6
2.8
(44)
0.1
(338)
-2.9
(186)
-1.4
(280)
-6.0
178
5.3
(50)
-0.8
-2.9%
-8.5%
-8.8%
-0.3%
-7.6%
0.9%
-8.5%
-24.1%
-16.9%
2.6%
12.0%
-13.2%
-5.1%
-8.5%
0.5%
10.1%
-7.6%
0.8%
-12.9%
-4.9%
-12.1%
-4.0%
-61.7%
-58.3%
41.6%
54.6%
-25.5%
-18.2%
Training and development
The rapid, ongoing evolution of our business and the sup-
port of our strategy in a rapidly changing global environ-
ment have resulted in a need for new technical and pro-
fessional skills. For this reason, ongoing employee training
and strategies of upskilling (training and empowerment
programs to improve performance within a given role) and
reskilling (learning new skills and capabilities that enable
people to fill new positions) are of increasing importance.
In 2023, in support of these strategies, we provided a total
of about 3.1 million hours of training, an average of about
48 hours per employee, exceeding the target of an av-
erage of 45.5 hours per employee. Of these, 44.8% were
dedicated to up/reskilling, an increase on the previous
year (42% in 2022). Total training costs came to about €27
million in 2023.
This was made possible by the upgrading of digital tools
and the E-Ducation platform, which gives broad access,
including remotely, to training content concerning con-
duct, technical issues, safety and reskilling, working in co-
operation with academic partners.
198 Integrated Annual Report 2023
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
2023
48.1
34.0
42.9
40.3
69.3
50.7
39.7
2022
47.4
44.1
47.4
43.0
57.1
48.3
44.3
Change
0.7
(10.1)
(4.5)
(2.7)
12.2
2.4
(4.6)
1.5%
-22.9%
-9.5%
-6.3%
21.4%
5.0%
-10.4%
In 2023, with regard to the development and assessment
of Enel’s people, we continued with the Open Feedback
Evaluation (OFE) program, a mechanism for the constant,
360° collection of feedback from all employees, thereby
creating an ongoing dialogue within the organization. The
process is conducted on a half-yearly cycle and assess-
es “Generosity”, meaning a propensity for interacting with
others; and “Action”, i.e. the ability to achieve professional
objectives, as assessed by superiors.
With a view to fostering and developing the individual,
2023 say an increase in the use of tools such as job shad-
owing, mentoring and coaching.
During 2023, the annual process of managing Succession
Plans for management positions saw an increase in the
percentage of female successors (47.2%). Together with
other confirmed selection criteria for the identification of
successors, gender criteria take account of the commit-
ments made by the Enel Group regarding diversity and in-
clusion, further enhancing these aspects.
Succession planning has also been extended to key
non-management positions, involving new position hold-
ers (heads of organizational positions). This expansion en-
abled the identification of new successors, both ready and
in the pipeline (with consideration of gender issues), for
whom an ad hoc development and training program has
been developed.
Listening and enhancing wellness
In 2023, listening activities were carried out through the
first Global Inclusive Survey exploring people’s general
perception of inclusion in the working environment at all
organizational levels. 48% of eligible people responded
(over 61,000). The findings of the survey underscore the
good level of perceived general inclusion of people: the
average respondent assessment of this aspect was equal
to 4.5 out of 6, and 87% of people had either a positive or
very positive evaluation.
Since 2021, Enel has developed a global Well-being mod-
el using a co-creation approach based on eight pillars:
emotional, physical, social, ethical, financial and cultural
well-being, a sense of protection and work-life harmony.
Following the analysis of the results of the Well-being &
Motivation survey, which was launched in 2022 in order to
gain an understanding of the evolution of organizational
well-being and to refine initiatives designed to improve it,
meetings were held to share the findings, using webinars
coordinated by management in the various countries. At
the global level, projects were developed in 2023 to en-
hance the well-being of people, teams and managers in
the organization. The general well-being index measured
by the survey in 2022 was 60% globally. This represents the
percentage of respondents who are quite or very satisfied
with their general well-being (personal and working life).
Last year was the first year of full operation of the Glob-
al Well-being Program, which is intended to increase the
awareness of all people on their level of well-being by en-
gaging them through self-assessment tests, webinars,
newsletters and other dedicated activities. The program
is associated with an incentive mechanism that rewards
the virtuous behavior of those who participate in the pro-
gram every six months. During 2023, over 26,000 employ-
ees (43% of Enel’s people) actively participated, while over
4,000 rewards were distributed globally to people who
used all the content of the program.
The pilot project “Well-being leaders, Happy teams” test-
ed a new intervention method to support teams with lower
perceived well-being, using the Well-being Index as the
selection criterion. In addition, by listening to the man-
agers of teams with a very high perceived well-being, the
project identified distinctive characteristics and virtuous
behaviors to be disseminated within the Company in order
to reinforce well-being-oriented leadership.
To facilitate the diffusion of a culture of well-being and
improvement, the first
identify situations calling for
People centricity
199
well-being ambassadors – promoters of enabling behav-
iors, listening and guidance figures for people who re-
quest help – have been selected and trained in the main
Group countries.
Services and initiatives that help care for your personal
and family mental and physical well-being are also avail-
able at the local level. Free or subsidized psychological
support services are available for more than 98% of Enel’s
people, while physical well-being services are available for
over 90%. The CReW – Enel Cycle, Run & Walk Challenge
project is also active globally: it promotes the physical
well-being associated with sustainable mobility, involving
over 3,500 Enel participants in 2023.
The levers of inclusion at Enel
At Enel, attention to uniqueness and care for people are
key elements for generating well-being and motivation
and are levers for creativity, innovation and the achieve-
ment of valuable results for our people and the entire
organization. The approach to diversity and inclusion is
based on the principles of non-discrimination, equal op-
portunities, personal dignity, inclusion regardless of any
form of diversity, and work-life balance. This approach is
embodied in a comprehensive set of actions that promote
an attention to and expression of individuality, a culture of
inclusiveness without prejudice, and a coherent mix of tal-
ents, qualities and experience, all of which creates value
for our people and for our business, which is transitioning
towards a decarbonized economy, acknowledged globally
as a flywheel for guiding various forms of diversity towards
the world of work.
The approach has been ratified in our Charter for the Indi-
vidual, a protocol of intent that Enel signed on March 29,
2022, underscoring the importance of personal well-being
and integrity in an environment in which well-being, pro-
ductivity, continuous learning and security can reinforce
each other, contributing to the greatest fulfillment of the
person and the achievement of results.
The principles expressed in the Charter for the Individual
with regard to the participation, well-being, inclusion and
security of each worker inspired the renewal in 2023 of the
Global Framework Agreement (GFA) – originally signed in
2013 – with the Italian industry federations and the global
federations IndustriALL and Public Services International.
Industrial relations are addressed at Group level in ac-
cordance with the model envisaged in the GFA, which is
recognized as a reference best practice for European and
non-European multinationals. The agreement is based on
international principles for human rights and business and
is inspired by the best and most advanced transnational
industrial relations systems used in multinational groups
and key institutions at the international level.
The milestones that have brought us to today began back
in 2013 with publication of our Human Rights Policy (updat-
ed in 2021). This was followed in 2015 by Enel’s adoption of
the seven Women’s Empowerment Principles (WEPs) pro-
moted by the UN Global Compact and UN Women and the
parallel publication of the Diversity and Inclusion Policy,
which defines the principles of non-discrimination, equal
opportunities, dignity, work-life balance, and inclusiveness
regardless of any form of diversity. In 2019, our Workplace
Harassment Policy(44) introduced the issues of individu-
al respect, integrity and dignity in the workplace into the
prevention of all types of harassment. These principles
were shared in 2020 in the Statement Against Harassment
in the workplace.(45) We also created a Digital Accessibility
section on the Enel intranet. It is designed to ensure equal
opportunities in access to digital systems and information.
In recent years, intensive awareness-raising efforts have
enabled the dissemination and strengthening of a culture
of inclusion at all levels and in all settings within the organi-
zation by way of communication campaigns and local and
global events. The most important initiatives undertaken in
2023 include the expansion of local Employee Resourc-
es Groups, important networks and/or communities that
fuel conversations within the Group on a variety of issues
concerning inclusion and diversity and offer an opportu-
nity to sharing views on female empowerment, parenting,
caregiving, disability, intergenerational and intercultur-
al relations and the LGBTQ+ community. The delivery of
Beyond Bias training courses continued throughout the
Group, enabling the identification of the main prejudices
that may be encountered in the workplace. Adopting an
ironic and surreal tone, the course suggests how to pre-
vent these biases by offering interesting food for thought.
The Workplace Harassment training course describes
forms of harassment and discrimination related to age,
disability, LGBTQ+ status and sexual orientation. To spread
the principles of inclusive design, the training activity “Ac-
cessibility and Design for all Awareness” was also offered
globally. It represents a design approach whose funda-
mental objective is the conception and creation of spaces,
products and services that are themselves accessible to
(44) The Workplace Harassment Policy is an internal corporate publication.
(45) https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/enel-statement-against-harassment.pdf.
200 Integrated Annual Report 2023
all. The course aims to raise awareness and train people in
an increasingly inclusive culture, spreading awareness of
the application Design for All principles.
Promoting a culture of inclusiveness at Enel also involves
target setting and measurement. It is an approach that is
encapsulated in a comprehensive plan of actions mea-
sured using a broad set of KPIs for which commitments
approved by the corporate bodies have been made. These
commitments include: balancing the percentage of wom-
en in hiring processes; increasing the representation of
women in senior and middle management and in succes-
sion plans; increasing the number of female students in-
volved in awareness initiatives in Science, Technology, En-
gineering and Math (STEM) fields; promoting projects for
the inclusion of employees with disabilities at all stages of
the employee journey; and fostering the dissemination of
a bias-free culture sensitive to intercultural diversity.
More specifically, our strategy for gender equality is or-
ganized into various lines of action. We are working to in-
crease the presence of women in hiring processes, with a
positive trend being registered in 2023 as well (52%), con-
firming the Group’s commitment to achieving this goal. In
terms of women in management positions, we have seen
both the number and the percentage of female manag-
ers continue to climb, increasing by 1.3 percentage points
in 2023 (from 24.9% in 2022 to 26.2% in 2023). The per-
centage of women middle managers also increased (from
32.6% in 2022 to 33.1% in 2023). Actions to value the con-
tribution of women throughout the organization, and not
just in senior positions, have also continued, and the ef-
fects of these efforts will be better seen over the medium
to long term, due in part to generational dynamics. Among
the actions taken globally, the performance target for “the
percentage of women in top management succession
plans at the end of 2025” has been confirmed in the 2023
Long-Term Incentive Plan with a weighting of 10% of the
total in order to strengthen and lend greater continuity to
a policy to establish a suitable platform for management
appointments into the coming years.
Over the years, we have also increased our commitment
to promote the presence of women in STEM training and
careers in collaboration with schools and government, so
as to overcome gender stereotypes and promote the im-
portance of STEM and its integration with the humanities.
These STEM awareness and orientation initiatives involved
more than 7,800 female secondary-school students in
2023 and more than 37,000 female students over the last
seven years.(46)
On the issue of disabilities, Enel provides equipment, ser-
vices, working methods and other initiatives to create an
inclusive climate for work and relationships for all that
provides full autonomy at work regardless of the disability.
Worldwide, we have more than 2,000 employees with dis-
abilities. The issue is particularly relevant in Italy (with more
than 1,500 employees with disabilities, more than 73% of
the Group total).
Since Enel’s participation in the global Valuable 500 initia-
tive in 2019, initiatives involving disability issues have been
grouped within the Value for Disability project, aimed at
seizing potential business and promoting inclusion among
employees and customers with disabilities by designing
specific global and local plans of action. The project has
engendered widespread commitment to the issue and
given rise to initiatives in all countries, with an impact on
the inclusion of people with disabilities in relation to the
different aspects of their experience in the organization
and on cultural change.
Each country with at least one employee with a disability
has a focal point for hearing and responding to specific
needs and designing dedicated actions, as provided for in
the Diversity and Inclusion Policy.
Many countries have also organized initiatives focused
on intercultural and intergenerational issues and on the
LGBTQ+ community.
Finally, to promote parenthood and caring for all people
who find themselves in circumstances that have an impact
on work, the Parental Program supporting the parenting
experience has continued, as has the expansion of the
MaCro@Work Caring Program for employees with chronic
disorders and vulnerabilities in the various countries.
The table below shows Enel’s commitment to diversity and
inclusion, including the percentage of employees with dis-
abilities, the number of women in senior and middle man-
agement, and the ratio of the average salaries of women
to those of men.
(46) Beginning in 2022, the figure only includes initiatives targeting primary and secondary schools.
People centricity
201
Diversity and inclusion
Disabled personnel or personnel belonging to protected
categories
Women in senior and middle management
Percentage of women in senior and middle management
Percentage of women in management succession plans
Percentage of women in senior management succession plans
Base salary and remuneration ratios
Ratio of base salary women-to-men:
- senior manager
- middle manager
- office staff
- blue collar
Ratio of base remuneration women-to-men:
- senior manager
- middle manager
- office staff
- blue collar
%
no.
%
%
%
%
%
%
%
%
%
%
%
Workplace health and safety
2023
3.4
2022
3.3
4,447
4,463
32.5
47.2
50.4
84.5
93.9
92.1
101.4
81.4
92.8
92.5
102.1
31.8
46.1
49.6
83.9
92.8
88.8
125.0
80.7
91.9
89.3
125.4
Change
0.1
(16)
0.7
1.1
0.8
0.6
1.1
3.3
3.0%
-0.4%
2.2%
2.4%
1.6%
0.7%
1.2%
3.7%
-23.6
-18.9%
0.7
0.9
3.2
0.9%
1.0%
3.6%
-23.3
-18.6%
At Enel, people’s health, safety and mental and physical
integrity are considered the most precious assets, to be
protected at every moment of life, at work, at home and in
their free time. For this reason, we are committed to devel-
oping processes and creating increasingly healthier and
safer workspaces, both for employees and for anyone who
works with Enel, promoting dedicated training courses in
this arena.
values expressed and assumed in the Health and Safety
Policy, a Stop Work Policy has also been issued. It seeks
to make Enel employees and contractor companies re-
sponsible for managing potential risk situations regard-
ing health, safety and the environment. In fact, all workers
can stop any activity deemed risky for health, safety and
environmental protection, following a “no blaming” ap-
proach.(47)
To make this commitment clear and evident to all Group
employees as well as external stakeholders, Enel has de-
veloped and disseminated a Health and Safety Policy,
which sets out the guiding principles, strategic objectives,
approach and action guidelines for the continuous im-
provement of health and safety performance. The areas in
which Enel is committed to achieving its targets are also
specified: first and foremost, we find people, understood
both as internal employees and contractors working with
the Group, followed by processes and innovative technol-
ogies supporting accident prevention. Consistent with the
Enel also promotes, implements and continuously updates
its Health and Safety Management Systems, in compliance
with the internal policies referred to earlier as well as with
the international ISO 45001 standard. Enel SpA’s Manage-
ment System provides guidance and a uniform approach
for all Group companies: the business lines and the coun-
tries then have the task of implementing that system at
the local level, based on the specific features of their regu-
latory and business environment, and verifying its correct
implementation in the field.
(47) The principle under which no blame or liability is attributable to an employee or contractor who reports a risk situation.
202 Integrated Annual Report 2023
Hours worked
Enel
Contractors
Total Recordable Injuries (TRI)(1)
Enel
Contractors
Total Recordable Injury Frequency Rate (TRI FR)(2)
Enel
Contractors
Fatal injuries (FAT)
Enel
Contractors
Fatal Injury Frequency Rate (FAT FR)
Enel
Contractors
Life Changing Accidents (LCA)(3)
Enel
Contractors
Life Changing Accidents (LCA) Frequency Rate
Enel
Contractors
Lost Time Injury Frequency Rate with days lost (ACC>3 FR)(4)
Enel
Contractors
Lost Time Injury Frequency Rate with days lost (LTI FR)(5)
Enel
Contractors
High Potential Accidents Frequency Rate (HiPo FR)(6)
Enel
Contractors
millions of
hours
millions of
hours
millions of
hours
2023
2022
Change
385.898
427.847
(41.949)
-9.8%
120.546
123.624
(3.078)
-2.5%
265.352
304.223
(38.871)
-12.8%
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
no.
no.
no.
i
i
i
i
i
i
i
i
i
i
i
i
726
176
550
1.88
1.46
2.07
11
3
8
0.029
0.025
0.030
1
-
1
0.003
-
0.004
0.50
0.59
0.46
0.61
0.72
0.56
0.070
0.050
0.079
962
153
809
2.25
1.24
2.66
6
1
5
0.014
0.008
0.016
2
-
2
0.005
-
0.007
0.36
0.48
0.31
0.50
0.56
0.48
0.072
0.057
0.079
(236)
23
(259)
(0.37)
0.22
(0.59)
5
2
3
0.015
0.017
0.014
(1)
-
(1)
(0.002)
-
-24.5%
15.0%
-32.0%
-16.4%
17.7%
-22.2%
83.3%
-
60.0%
-
-
87.5%
-50.0%
-
-50.0%
-40.0%
-
(0.003)
-42.9%
0.14
0.11
0.15
0.11
0.16
0.08
(0.002)
(0.007)
-
38.9%
22.9%
48.4%
22.0%
28.6%
16.7%
-2.8%
-12.3%
-
(1) Total Recordable Injuries (TRI): this includes all incidents that have caused injuries, including lost time injuries, incidents requiring the administration of first
aid, or incidents that did not result in lost time.
(2) Total Recordable Injury Frequency Rate (TRI FR): as for all the frequency rates for the various types of incidents, this is calculated as the ratio of number of
events to total hours worked (in millions).
(3) Life Changing Accidents (LCAs): injuries whose health consequences caused permanent changes in the life of the individual (e.g., amputation of a limb,
paralysis, extensive and visible scarring, etc.). Beginning with the 2021 reporting cycle, the metric Life Changing Accidents replaced High Consequence
Injuries following efforts to standardize safety reporting within the organization. Therefore, the figures for 2020 and 2019 have been recalculated in line with
this new approach.
(4) Lost Time Injury Frequency Rate with days lost (ACC>3 FR) is calculated considering accidents in which the worker lost at least three days of work.
(5) Lost Time Injury Frequency Rate (LTI FR) is calculated considering all injuries that have resulted in at least one day of absence from work.
(6) High Potential Accidents Frequency Rate (HiPo FR): all injuries the characteristics of which have a high potential for causing a life changing or fatal event.
Compared with 2022, the number of accident events with
injuries, including first aid (TRI), decreased by 24.5% (726 in
2023 compared with 962 in 2022), mainly due to the reduc-
tion in accident events that did not involve days of absence
from work. The reduction is mainly attributable to the em-
ployees of contractors (-32%), while there was a slight in-
crease in events involving Enel personnel (+15%). The Total
Recordable Injury Frequency Rate (TRI FR) followed the same
trend, with a decrease of 16.4% (1.88 in 2023 compared with
2.25 in 2022), representing approximately 2 accident events
per million hours worked. With regards to hours worked,
there was a significant reduction during 2023 compared with
the previous year (approximately -10%), mainly linked to the
sale of a number of operations, such as Enel Goiás in Brazil
at the end of 2022. The Lost Time Injury Frequency Rate with
days lost (LTI FR) showed an increase of 22% compared with
the previous year (0.61 in 2023 compared with 0.50 in 2022)
among both Enel personnel and contractors.
This increase is mainly due to an increase in minor injuries
associated with only minimal impacts on worker safety. In
People centricity
203
fact, the sum of the most serious injuries, i.e. those with
the greatest actual or potential impact such as fatal in-
juries, life changing injuries (those which produce per-
manent changes in the life of the injured person) and
high-potential incidents (which differ from the former
only in the extent of the consequences for the worker
but not in the dynamics of the event), was unchanged on
2022 (39 events) and 25% lower than the average for the
three previous years. However, the distribution of injuries
among the different categories did change, as fatalities
increased (11 in 2023 compared with 6 in 2022), while life
changing injuries (1 in 2023 and 2 in 2022) and high-po-
tential incidents (27 in 2023 and 31 in 2022) declined.
Of the 11 fatal injuries in 2023, 9 were associated with
electrical risk and 2 with mechanical risk. Three fatal in-
juries involved Enel personnel (2 employees of Enel Grids
in Romania and 1 employee of Enel Grids in Argentina)
and 8 contractor personnel (3 in Brazil, 2 in Italy and 1 in
Spain who worked for Enel Grids, 1 in Brazil who worked
for Enel Green Power Brazil and 1 in Brazil who worked for
Enel Servizi).
As regards activities in 2023, Policy no. 106, which pro-
vides guidelines for the entire Group concerning the
communication, analysis and classification of accidents,
was updated in order to strengthen the near miss and
safety observation reporting process,(48) increase the at-
tention paid to HiPo events and more effectively trace
the root causes of each event to ensure greater effec-
tiveness in action plans and improved health and safety
performance.
The inspection process for verifying conduct and com-
pliance with procedures and working methods in the field
has also been revised in order to enhance effectiveness.
In particular, a data-driven approach has been imple-
mented, based on IT tools and analytical dashboards. It
can use evidence from the monitoring and control sys-
tem to enable evaluation of the performance of organi-
zational units and suppliers, the identification of areas
at greatest risk of fatal and life changing accidents and
subsequent management methods.
In 2023, there were 101 cases of Extra Checking on Site
(ECoS) involving high-risk areas. This process consists in
internal environment and safety assessments designed to
verify the adequacy of the organization and processes in
a specific area of Group operations, identify any adverse
issues and develop corrective actions. These checks are
conducted by specialist HSEQ personnel from outside
the units being assessed, assisted by technicians spe-
cialized in the specific business.
Another area of great attention for the entire Enel Group is
the protection of health, a fundamental value for the care
and development of our people, not only at work but also
in daily life. For this reason, the Enel Group has adopted a
structured health management system based on preven-
tion and protection measures and is committed to devel-
oping a corporate culture oriented towards the promotion
of mental and physical health and organizational well-be-
ing and personal work-life balance: to this end Policy no.
179 “Health and Well-being” was updated at the end of
July 2023.
The objective of safeguarding workplace safety and the
mental and physical integrity of all the people of the Enel
Group is the main driver of training, awareness and infor-
mation activities. To foster the growth of technical skills
and a safety culture, support change processes and re-
spond in a timely manner to the needs that emerge from
the business, the Group has a structured training man-
agement process, designed to transform knowledge into
skills and then into behaviors. Overall, in 2023, 1,452 hours
of training were provided to Enel staff on workplace health
and safety issues.
The Enel Group’s approach to contractors is to consid-
er each to be a partner with which we share our essen-
tial workplace safety and environmental protection rules.
As such, safety is integrated into the tender process, and
supplier performance is assessed both as part of the qual-
ification process and when executing the contract by way
of numerous controls and other mechanisms, including:
the Health, Safety and Environment (HSE) Terms, the Sup-
plier Performance Management (SPM) process, the Con-
tractor Assessment (CA) process and Evaluation Groups
(EGs).(49) In particular, the supplier qualification system pro-
vides for a specific evaluation of H&S issues based on the
level of H&S risk of the activities associated with the dif-
ferent product groups. As regards workplace and environ-
mental safety checks of contractors, in 2023 we continued
to perform CAs at their premises, their construction sites
or remotely if an on-site visit was not possible. Specifical-
ly, 1,215 CAs were performed across all business lines and
countries in which Enel is present.
Enel also recognizes technological innovation as a valid
tool for improving health and safety processes. The cri-
(48) An unsafe behavior/situation adopted by Enel or contractor personnel or an unsafe/risky situation, to which Enel or contractor personnel could be ex-
posed, which did not give rise to an accident, but which could have caused one.
(49) HSE Terms, a document that defines the obligations with which contractors and their subcontractors must comply concerning health, safety and environ-
ment; Supplier Performance Management, a process for controlling the safety performance of companies; Contractor Assessment, analyses of contractors
during the qualification phase or in cases where critical issues or low scores emerge in the evaluation of safety indicators during the contracted activities;
Evaluation Groups, periodic multidisciplinary meetings across all global business lines and geographical areas for the evaluation of the safety performance
of suppliers and the definition of targeted actions and personalized support plans for individual companies.
204 Integrated Annual Report 2023
teria with which the development priorities of innovative
projects are defined are based on a “risk management”
logic, seeking primarily to eliminate or reduce the prob-
ability of an event occurring depending on feasibility. An
example is the Remote Trimming project, developed within
Enel Grids, which consists in the use of a robot for prun-
ing vegetation near electricity grids, allowing operators to
interact with the device remotely, remaining outside the
most dangerous areas and effectively eliminating the risks.
Responsible relations with communities
Listening to the communities in the territories in which Enel
operates and promoting inclusive economic and social de-
velopment to ensure an energy transition that is as fair as
possible represent a fundamental pillar of Enel’s strategy
both in the daily management of business operations and
in the planning of new infrastructures. Establishing solid
and long-lasting relationships with local communities is es-
sential to guaranteeing the implementation of a sustainable
business, while boosting its competitiveness and inclusive-
ness.
Aware that the Group’s activities can have a direct and indi-
rect influence on the communities in which it operates, Enel
has adopted a sustainable business approach along the en-
tire value chain, integrating social as well as environmental
sustainability criteria into the various processes from very
earliest stages of development. This model is consistent
with the main international standards in this area (such
as the United Nations Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational
Enterprises), which underpin Enel’s commitment to human
rights in business practices.
The Group’s sustainable business approach is based on
careful analysis of the contexts in which we operate. Thanks
to proactive dialogue and community engagement initia-
tives, potential risks, impacts and opportunities are identi-
fied in order to implement prevention and mitigation inter-
ventions. This approach also includes the principle of “Sus-
tainability by design” to take account of the needs of local
communities from the early stages of asset design. The
approach also envisages emergency management plans
Sustainable supply chain
with sustainability actions to be implemented in response
to sudden and unexpected events and serious damage,
such as critical events impacting Group assets, projects or
products as a result of natural disasters or social/commu-
nity unrest.
This approach has prompted Enel to innovate both the way
it manages the business and develops energy products and
services. It also leverages the awareness that the activation
of virtuous ecosystems, such as partnerships, represents an
indispensable factor in facilitating and promoting the iden-
tification and implementation of innovative social solutions
as part of the transition towards a decarbonized economy.
In 2023, Enel’s contribution to the development and social
and economic growth of the territories and communities
with whom it operates translated into sustainability projects
in the various countries in which it operates, involving over
3.9 million beneficiaries, in line with the United Nations Sus-
tainable Development Goals (SDGs), of which over 70% re-
gard projects and initiatives associated with the three SDGs
to which the Group has made a commitment (SDG 4, SDG
7, SDG 8).
In line with the SDGs, Enel makes an effective contribution
to the progress of local territories, creating value for both
communities and our business through professional edu-
cation and training projects and providing access to reliable
and sustainable energy, both through rural and suburban
electrification initiatives and by promoting social inclusion
for the most vulnerable categories of the population (from
a physical, social and economic point of view).
For further information on the activities performed, please
see the Group’s 2023 Sustainability Report.
Active suppliers
Suppliers (FTE)
Qualified suppliers assessed for ESG issues
Qualified suppliers assessed for social issues (including human
rights and health and safety) for all goods categories
Qualified suppliers assessed for environmental issues for all goods
categories
2023
14,001
150,820
100
100
100
2022
20,434
172,854
99
99
99
Change
(6,433)
(22,034)
1,0
1,0
1,0
-31.5%
-12.7%
1.0%
1.0%
1.0%
no.
no.
%
%
%
People centricity
205
Suppliers are the Group’s partners along the path of sus-
tainable growth, working to maximize the economic, pro-
ductive, social and environmental benefits of the transition.
Enel is committed every day to creating sustainable, inno-
vative and circular processes that also make it possible to
better quantify, and therefore mitigate, the total impacts
that suppliers generate, aware of the need to minimize
pressures on critical materials and components through
technological innovation and continuous recycling and to
support the resilience and retraining of its partners.
Purchasing processes are founded on mutual loyalty, trans-
parency and collaboration in accordance with the highest
standards of sustainability. For this reason, the selection
of partners and the execution of contracts undergo anal-
ysis and monitoring throughout the entire procurement
process. This is pursued on the basis of clear guidelines,
namely codes of conduct, including the Human Rights
Policy, the Code of Ethics, the “Zero-Tolerance-of-Cor-
ruption” Plan and global compliance programs.
Specifically:
• Enel’s global vendor qualification system conducts an
analysis of compliance with technical, financial, legal,
environmental, human (including health and safety),
ethical rights and integrity requirements of the firms
that intend to participate in tenders. At December 31,
2023, qualified suppliers totaled 19,692 (of which 100%
assessed on the basis of ESG criteria) and of these
8,300 had an active contract during the reporting pe-
riod;
• the tendering and bargaining process adopts a struc-
tured process for defining “sustainability requirements
and rewarding factors (K)” which can be used by the
various purchasing and monitoring units throughout
the period of execution of the contract. The process
involves the use of two “libraries”, which catalog all the
sustainability requirements and Ks grouped into social,
environmental and circularity certification macro-cate-
gories. At December 31, 2023, 66% of supply contracts
provided for the submission of carbon footprint certifi-
cations from the contracted vendors.
Furthermore, specific contractual clauses have been
defined, which are included in all works, service and
supply contracts and updated periodically to ensure
alignment with international best practices. The Gener-
al Terms of Contract establish that Enel’s suppliers, in-
cluding subcontractors, sub-suppliers, third parties and
in general the entire supply chain shall comply with cur-
rent regulations on pay, contributions, insurance and
taxation for all workers employed in any capacity in the
execution of the contract. In addition, explicit reference
is made to the principles referred to in the relevant ILO
Conventions and provisions of law concerning child
labor, female labor, equality of treatment, prohibition
of discrimination, abuse and harassment; trade union
freedom, association and representation; refusal of
forced labor; safety and environmental protection and
sanitation conditions. In the event of conflict between
regulatory sources, the more restrictive shall prevail.
The clauses(50) also provide that suppliers, subcontrac-
tors, sub-suppliers, third parties and in general the en-
tire supply chain shall undertake to prevent any and all
forms of corruption.
The number of FTEs(51) working at Enel worksites at De-
cember 31, 2023 totaled 150,820;
• analysis and monitoring are conducted throughout the
entire procurement process, making use of specific
systems such as, during performance of the contract,
the Supplier Performance Management (SPM), whose
objective within our collaboration with vendors is not
only to undertake any corrective actions in the contract
execution phase, but also to encourage a process of
improvement using actions that reward the adoption
of best practices. The process is based on an objec-
tive and systematic collection of data and information
relating to the execution of the service covered by the
contract. These data are used to produce specific in-
dicators, also called categories (e.g., Health, Safety and
Environment, Human Rights & Correctness, and Quality
and Punctuality).
Meetings with suppliers continued in 2023 with a focus
on decarbonization issues, circularity and human rights,
with a view to jointly developing practices and common
approaches and spur vendors to achieve the sustainability
standards demanded by the international community.
More specifically, meetings were organized with the main
suppliers in strategic product categories to provide them
with technical information on the new tender require-
ments regarding human rights and other contractual
clauses. For more information on the activities carried out,
please see the Group’s 2023 Sustainability Report.
(50) Article 29.1.5 of the General Terms of Contract.
(51) FTE = Full Time Equivalent. This corresponds to the number of workers necessary to perform a certain number of hours worked, assuming they are working
full time. One FTE therefore corresponds to one person/day.
206 Integrated Annual Report 2023
People centricity
207
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 2023
PILLAR
THEME
Governing
purpose
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
2023
2022 Change
Sett ing purpose
Quality of
governing body
Governance body
composition
Stakeholder
engagement
Material issues
impacting
stakeholders
No. of women on Board
4
4
-
PRINCIPLES
OF
GOVERNANCE
Ethical behavior
Employees with training in
anti-corruption policies and
procedures (%)
49.6
46.9
2.7
Confi rmed violations for confl ict
of interest/corruption (no.)
7
10
(3)
Report s received for violations
of the Code of Ethics
207
168
39
Anti-corruption
Protected
ethics advice
and report ing
mechanisms
Risk and
opport unity
oversight
Integrating risk and
opport unity into
business process
Greenhouse Gas
(GHG) emissions
Climate change
TCFD
implementation
(ISSB from January
1, 2024)(1)
Land use and
ecological
sensitivity
Water
consumption
and withdrawal in
water-stressed
areas
Nature loss
Freshwater
availability
Direct greenhouse gas emissions
- Scope 1 (million teq)
Indirect greenhouse gas
emissions - Scope 2 - Purchase
of electricity from the grid
(location based) (million teq)
Indirect greenhouse gas
emissions - Scope 2 - Purchase
of electricity from the grid
(market based) (million teq)
Indirect greenhouse gas
emissions - Scope 3 (million teq)
34.51
53.07
(18.56)
3.28
3.82
0.54
4.51
5.10
(0.59)
56.53 71.04 (14.51)
Habitat restoration projects (in
hectares)
8,343 9,452
(1,109)
Water withdrawals (millions of m3) 55.0
76.0
(21.0)
Water withdrawals in water-
stressed areas (%)
23.3
19.3
4.0
Total water consumption (millions
of m3)
35.4
45.2
(9.8)
Water consumption in water-
stressed areas (%)
22.1
20.5
1.6
PLANET
Chapter/Section report ing all
KPIs and disclosure on the 21
CORE KPIs of the WEF
“Governance” chapter
“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
Perf ormance” chapter
“Governance”, “Group Strategy
& Risk Management”, “Group
Perf ormance” and “Outlook”
chapters
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Perf ormance” chapter
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Perf ormance” chapter
208 Integrated Annual Report 2023
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.
PILLAR
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
2023
2022 Change
CORE KPIs of the WEF
Chapter/Section report ing all
KPIs and disclosure on the 21
INTEGRATED ANNUAL REPORT 2023
THEME
Governing
purpose
Sett ing purpose
Quality of
Governance body
governing body
composition
Stakeholder
engagement
Material issues
impacting
stakeholders
No. of women on Board
4
4
-
PRINCIPLES
OF
GOVERNANCE
Ethical behavior
Employees with training in
anti-corruption policies and
procedures (%)
49.6
46.9
2.7
Confi rmed violations for confl ict
of interest/corruption (no.)
7
10
(3)
Report s received for violations
of the Code of Ethics
207
168
39
Anti-corruption
Protected
ethics advice
and report ing
mechanisms
Risk and
opport unity
oversight
Integrating risk and
opport unity into
business process
Climate change
4.51
5.10
(0.59)
Direct greenhouse gas emissions
- Scope 1 (million teq)
34.51
53.07
(18.56)
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)
3.28
3.82
0.54
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Perf ormance” chapter
56.53 71.04 (14.51)
“Governance” chapter
“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
“Governance”, “Group Strategy
& Risk Management”, “Group
Perf ormance” and “Outlook”
chapters
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Perf ormance” chapter
“Fighting climate change
and ensuring environmental
sustainability” section in “Group
Perf ormance” chapter
Greenhouse Gas
(GHG) emissions
TCFD
implementation
(ISSB from January
1, 2024)(1)
Land use and
ecological
sensitivity
Water
consumption
and withdrawal in
water-stressed
areas
PLANET
Nature loss
Freshwater
availability
Habitat restoration projects (in
hectares)
8,343 9,452
(1,109)
Water withdrawals (millions of m3) 55.0
76.0
(21.0)
Water withdrawals in water-
stressed areas (%)
23.3
19.3
4.0
Total water consumption (millions
of m3)
35.4
45.2
(9.8)
Water consumption in water-
stressed areas (%)
22.1
20.5
1.6
INTEGRATED ANNUAL REPORT 2023
PILLAR
THEME
21 CORE KPIs
KPIs representing the 21
CORE KPIs of the WEF
2023
2022 Change
Diversity and
inclusion
Women as proport ion of total
employees (%)
22.7
23.4
(0.7)
Pay equality
Equal Remuneration Ratio (%)
81.4
80.7
(0.7)
Dignity and
equality
Wage level
CEO Pay Ratio - up to May 10,
2023(2)
CEO Pay Ratio - from May 12,
2023(2)
25x
62x
(37)
43x
n.a.
-
Chapter/Section report ing all
KPIs and disclosure on the 21
CORE KPIs of the WEF
“People centricity” section in
“Group Perf ormance” chapter
“People centricity” section in
“Group Perf ormance” chapter
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
“Values and pillars of corporate
ethics” section in “Governance”
chapter
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)
0.025 0.008 0.017
-
-
-
-
-
-
48.1
47.4
0.7
Employee training costs (millions
of euro)
27
30
(3)
People hired (no.)
3,837 6,412
(2,575)
Absolute number
and rate of
employment
Hiring rate (%)
6.3
9.8
(3.5)
Terminations (no.)
4,038 4,414
(376)
Turnover (%)
6.6
6.8
(0.2)
“People centricity” section in
“Group Perf ormance” chapter
“People centricity” section in
“Group Perf ormance” chapter
“People centricity” section in
“Group Perf ormance” chapter
“Value generated and
distributed for stakeholders”
section in “Group Perf ormance”
chapter
“Analysis of the Group’s
fi nancial position and
structure” section in “Group
Perf ormance” chapter
Employment
and wealth
generation
Economic
contribution
Financial
investment
contribution
PROSPERITY
Total investment (millions of euro) 12,714 14,347 (1,633)
Purchase of treasury shares,
payment of dividends and interim
dividends and coupons paid to
holders of hybrid bonds (millions
of euro)
5,337 5,038 299
Consolidated fi nancial
statements
Innovation in
bett er products
and services
Total R&D
expenses
Investment in R&D (millions of
euro)
60
105
(45)
“Innovation” section in “Group
Perf ormance” chapter
Community and
social vitality
Total tax paid
Total tax paid (millions of euro)(3)
5,861 4,778 1,083
“Value generated and
distributed for stakeholders”
section in “Group Perf ormance”
chapter
(1)
Incorporated in the ISSB standards from January 1, 2024 as the sustainability report ing standards IFRS S1 and IFRS S2 published at the end of June by the
ISSB are perf ectly in line with those of the TCFD.
(2) Ratio between the total remuneration of the CEO/General Manager of Enel and the average gross annual remuneration of Group employees. In order to
ensure the fi gures for 2023 and 2022 are comparable, the 2022 fi gure has been adjusted by applying the 2023 exchange rate to 2022 remuneration.
(3) The amount regards “total tax borne”, which is the total amount paid by the Enel Group (including the Greek and Romanian companies in both years) for
taxes recognized in profi t or loss. For more information on total tax borne, please see the 2023 Sustainability Report and the Consolidated Non-Financial
Statement.
World Economic Forum (WEF)
209
EUROPEAN UNION
TAXONOMY
Enel welcomes the development of the EU Taxonomy
Regulation 2020/852, as it provides a standardized, sci-
ence-based classification system to identify environmen-
tally sustainable economic activities.
The EU Taxonomy Regulation acts as an important enabler
to promote sustainable investments and accelerate the
decarbonization of the European economy, while at the
same time creating reliability and transparency for inves-
tors and supporting companies in planning the Net Zero
transition.
Please note that EU taxonomy reporting is included in full
in the “2023 Sustainability Report - Consolidated Non-Fi-
nancial Statement” prepared as required by Article 8 of
the European Taxonomy Regulation 2020/852, complying
with the criteria established in the other delegated acts
issued by the European Commission and available on the
date of publication of the Sustainability Report.
More specifically, the EU taxonomy reporting has been im-
plemented based on the following regulations:
• Delegated Regulation (EU) 2021/2139 of June 4, 2021
(Climate Delegated Act);
• Delegated Regulation (EU) 2021/2178 of July 6, 2021
(Disclosures Delegated Act);
• Delegated Regulation (EU) 2022/1214 of March 9, 2022
(Complementary Climate Delegated Act);
• Delegated Regulation (EU) 2023/2485 of June 27, 2023
amending the Climate Delegated Act;
• Delegated Regulation (EU) 2023/2486 of June 27, 2023
(Environmental Delegated Act).
The European taxonomy implementation
process at Enel
1.
Identification of
eligible economic
activities
2.
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
In a process overseen by the CEO and top management,
involving the relevant functions at corporate and country
level, as well as all business lines, a five-step process is in
place to analyze the applicability of the EU Taxonomy Regu-
lation throughout the entire value chain and in all countries
where we operate.
For more on the phases of the implementation process for
the European taxonomy, please see the “2023 Sustainability
Report – Consolidated Non-Financial Statement”.
Through this process, Enel has classified all economic activ-
ities along its value chain for their contribution to the climate
change mitigation objective, which is the most relevant for
the Group, according to the following three categories: eli-
gible aligned, eligible non-aligned, and non-eligible.
210 Integrated Annual Report 2023
EUROPEAN UNION
TAXONOMY
The European taxonomy implementation
process at Enel
1.
Identification of
eligible economic
activities
2.
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
ELIGIBLE ALIGNED
Eligible aligned: refers to an economic activity that simultaneously satisfies the following
three conditions:
• it is explicitly included in the EU Taxonomy Regulation for its substantial contribution to climate
change mitigation; and
• it meets the specific criteria developed by the EU Taxonomy Regulation for that specific environ-
mental objective; and
• it meets all DNSH criteria and minimum social safeguards.
ELIGIBLE NON-
ALIGNED
Eligible non-aligned: refers to an economic activity that:
• is explicitly included in the EU Taxonomy Regulation for its substantial contribution to climate
change mitigation or adaptation; but
• does not meet the specific criteria developed by the EU Taxonomy Regulation for those specific
environmental objectives; or
• does not meet all the DNSH criteria and/or the minimum social safeguards.
NON-ELIGIBLE
Non-eligible: refers to an economic activity that has not been identified by the EU Taxonomy Reg-
ulation as a substantial contributor to climate change mitigation and for which no criteria have
therefore been developed. The logic of the European Commission is that these activities might:
• not have a significant impact on climate change mitigation or could be integrated into the EU
Taxonomy Regulation at a later stage;
• cause a very significant impact on climate change mitigation, so they cannot be eligible in any
case.
It is important to note that activities classified as eligible
aligned from a climate change mitigation perspective also
include adaptation solutions (mainly in the design and
construction phase of assets) and are therefore also eligi-
ble aligned for this other objective.
However, the existence of the category “non-eligible”
makes it impossible to achieve a business model that is
fully aligned with the criteria of the EU Taxonomy Regula-
tion, even though these might not cause any harm to the
EU’s environmental objectives.
European Union taxonomy
211
Mapping of Enel’s business activities for their contribution
to climate change mitigation
EUROPEAN
TAXONOMY
ELIGIBLE
ALIGNED
NON-ALIGNED
NON-ELIGIBLE
Mapping in
accordance
with Climate
Delegated
Act and
Complementary
Delegated Act
Hydro (0.6%)
• Coal
• Nuclear(1)
• Fuel-oil and OCGT(2)
• Gaseous fossil fuels
(CCGT)
• New connections
between a substation
or grid and a generation
plant with greenhouse
gas intensity over
threshold of
100 gCO2eq/kWh
• Distribution in Peru
Trading
Retail sale
of power
or gas to
end users
• Financial services, general
services and other
unmeasured product
clusters
• Solar and wind
• Hydro (99.4%)
• Geothermal
• RES storage
• Manufacture of
solar panels
Distribution in Europe,
Brazil, Argentina, Chile
and Colombia without
new connections between
a substation or grid and
a generation plant with
greenhouse gas intensity
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
(1) The operation of the nuclear generation portfolio is not included among the eligible activities considered by the Complementary Delegated Act in the
(2)
generation of electricity from nuclear power plants.
Includes both fuel-oil and gas (OCGT) as it is not possible to divide the two types of fuel. Fuel-oil was considered to be the prevalent fossil fuel and is
therefore non-eligible under the EU taxonomy regulation.
In 2023 the Enel Group updated the eligibility analysis of
Enel’s productive economic activities by incorporating
the published delegated acts, implementing the process
described above based on the three categories: eligible
aligned, eligible non-aligned, non-eligible.
For more information on the results of the eligibility anal-
ysis and the classification of economic activities in the
above three categories, please see the “2023 Sustainabili-
ty Report – Consolidated Non-Financial Statement”.
212 Integrated Annual Report 2023
Statement on the alignment of Enel’s business
to the EU Taxonomy Regulation
Process for calculating the financial metrics
The Enel Group calculates the financial metrics associated
with each economic activity (classified into the categories
eligible aligned, eligible non-aligned, non-eligible) using a
specific process adopting the following criteria and con-
siderations:
• the three financial metrics required by the EU Taxonomy
Regulation (turnover, capital expenditure – capex – and
operating expenditure – opex) were calculated accord-
ing to the eligibility analysis described in this “European
Union taxonomy” section;
• although not expressly required, Enel also performed
an assessment in terms of the ordinary gross operating
profit (EBITDA) believing that this metric represents the
actual financial performance of integrated utilities such
as Enel;
• the financial information was gathered from the digital
accounting system used by the Enel Group, or from the
management systems in use by the Company’s busi-
ness lines. However, a number of derogations were ad-
opted to provide a more detailed representation of the
figures or to exclude specific activities from the overall
calculation of eligible alignment (such as non-aligned
hydroelectric power generation or infrastructure con-
sidered eligible but non-aligned among eligible and
aligned distribution network systems). For example, the
following derogations were used:
– hydroelectric: eligible non-aligned hydroelectric
power plants were excluded by considering their
output multiplied by the average turnover per unit
in the years 2022 and 2023. This approach was also
extended to capex, opex and EBITDA;
– infrastructure and networks: concerning capex, new
connections between a substation or grid and a
power plant with a greenhouse gas intensity above
the threshold of 100 gCO2eq/kWh were excluded
considering their capacity (in MW) multiplied by the
average capex per unit (k€/MW) for the years 2022
and 2023. This approach was also extended to turn-
over based on the on the assets’ lifespan;
• aggregate financial data in the report refer to the “sec-
tor” level and include items related to third parties and
inter sectorial exchanges;
• financial metrics were represented by considering all
electricity and gas sales as “non-eligible”;
• revenue classified as eligible aligned also include inter-
company revenue related to the sale of renewable elec-
tricity produced by the Group’s generation companies
and sold to the Group’s retail companies for marketing
to end customers, according to the Group’s integrated
position;
• capex: this also includes increases in assets from leases
(recognized pursuant to IFRS 16, paragraph 53, point
(h)), as requested by the Commission Delegated Regu-
lation (EU) 2021/2178;
• absolute turnover/capex/opex/ordinary EBITDA cor-
respond to the turnover/capex/opex/ordinary EBIT-
DA (measured in euros) of each specific activity. The
share of individual KPIs corresponds to each individual
economic activity in the total turnover/capex/ordinary
EBITDA of the Group (except for ordinary opex, as the
total of which refers only to the type of costs required
by the taxonomy);
• no ordinary capex and opex figures that may corre-
spond to adaptation solutions – in accordance with Ar-
ticle 11 (1)(a) of EU Taxonomy Regulation – in business
activities that already contribute to climate mitigation
have been allocated to climate adaptation objective,
thus avoiding any potential double counting with the
figures provided on climate mitigation objective. Fur-
thermore, no revenue was considered eligible for cli-
mate adaptation objective as Enel does not provide
adaptation solutions in accordance with Article 11 (1)(b)
of EU Taxonomy Regulation;
• for those minor activities that are eligible for either the
protection and restoration of biodiversity and ecosys-
tem or the circular economy objective a rounded figure
of “0” has been reported due to its insignificant weight
out of overall financial figures.
European Union taxonomy
213
Overall results
The high level of alignment of our economic activities with
the EU Taxonomy Regulation in 2023, made possible main-
ly by their substantial contribution to the climate change
mitigation objective while respecting the principle of Do
No Significant Harm (DNSH) to other environmental ob-
jective and observing the minimum social safeguards, is
shown below.
ORDINARY GROSS OPERATING PROFIT (EBITDA)
UNDER THE EUROPEAN TAXONOMY
In 2023, 59.7% of ordinary EBITDA relates to the business
activities aligned to the EU taxonomy, compared to 56.7%
in 2022.
The ordinary EBITDA percentage of eligible taxono-
my-aligned business activities increases in 2023 compared
to 2022 mainly due to an increase in the ordinary EBITDA
of renewable energy production and distribution activities
in absolute terms. At the same time, there is a decrease in
the ordinary EBITDA of the eligible non-aligned activities
mainly due to the thermoelectric power generation busi-
ness from combined cycles, which produced lower energy
volumes in 2023 compared to 2022.
In 2023, 33.8% of revenue are related to business activities
aligned to the EU taxonomy, compared to 21.4% in 2022.
Revenue decreased in absolute terms by €44.8 billion com-
pared to 2022. The change is mainly attributable to the low-
er volumes of electricity produced, the lower quantities of
energy sold in the wholesale and retail markets, as well as
the decrease in average selling prices of commodities, thus
impacting non-eligible and non-aligned activities.
At the same time, revenue related to the production of en-
ergy from renewable sources increased in 2023, resulting in
an increase in absolute terms of revenue in aligned activi-
ties from €30.6 billion in 2022 to €33.1 billion in 2023.
These phenomena contributed to the increase in the per-
centage weight of revenue from EU taxonomy-aligned ac-
tivities by 12% year-on-year.
Eligible aligned
Eligible non-aligned
Non-eligible
37.3%
3.0%
€22.0
billion
59.7%
TURNOVER (REVENUE) UNDER
THE EUROPEAN TAXONOMY
Eligible aligned
Eligible non-aligned
Non-eligible
€98.2
billion(1)
62.1%
33.8%
4.1%
(1) Revenue refers to the ordinary income statement.
(1) Revenue refers to the ordinary income statement.
214 Integrated Annual Report 2023
In 2023, 84.8% of capital expenditure (capex) is related to
business activities aligned to the EU taxonomy, compared
to 81.9% in 2022. This increase is mainly due to high-
er investments in energy storage systems through BESS
(Battery Energy Storage Systems) and a reduction in in-
vestments in non-eligible or non-aligned thermoelectric
technologies.
The actual 2023 capex for eligible aligned assets is 4.0%
higher than the capex planned for 2023 in the 2023-2025
Strategic Plan for the same assets. This change is main-
ly due to higher investments in absolute terms in eligible
aligned renewable and distribution activities than planned
(approximately €1.9 billion).
In 2023, 68.4% of ordinary operating expenses (opex)
relate to business activities aligned to the EU taxonomy,
compared to 66.9% in 2022.
The percentage of ordinary opex of eligible taxono-
my-aligned business activities increases in 2023 com-
pared to 2022 mainly due to higher maintenance costs
incurred in photovoltaic renewable energy production and
taxonomy-aligned distribution activities.
CAPITAL EXPENDITURE (CAPEX) UNDER
THE EUROPEAN TAXONOMY
Eligible aligned
Eligible non-aligned
Non-eligible
12.3%
2.9%
€14.2
billion(1)
84.8%
(1)
Includes an increase of €0.7 billion from assets in lease transactions
and €0.8 billion in respect of units classified as held for sale.
ORDINARY OPERATING EXPENSES (OPEX)
UNDER THE EUROPEAN TAXONOMY
Eligible aligned
Eligible non-aligned
Non-eligible
23.9%
7.7%
€1.3
billion(1)
68.4%
(1) Only includes types of cost specified by the taxonomy.
Detailed results
The following tables are represented according to what is
required by EU Regulation 2020/852, therefore consider-
ing the activity of electricity sales as “non-eligible”.
European Union taxonomy
215
EBITDA (ordinary)
Ordinary gross operating profit (EBITDA) under the European taxonomy
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
Category
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
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Installation, maintenance
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Economic
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Professional services
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(Enel X - Condomini)
Installation,
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equipment (7.3)
Installation,
maintenance and repair
of renewable energy
technologies (7.6)
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Batt ery Energy
Storage)
Infrastructure for
personal mobility (6.13)
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces att ached
to buildings) (7.4)
(e-Mobility)
Manufacture of
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technologies
EBITDA of
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A. Taxonomy-eligible
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Electricity generation
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CCM
4.3
CCM
4.1
CCM
4.5
Electricity generation
from geothermal energy
CCM
4.6
Storage of electricity
CCM
4.10
Transmission and
distribution of electricity
CCM
4.9
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
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(Enel X - e-Bus)
Installation, maintenance
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(Enel X - Energy
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CCM
7.3 d
CCM
6.3 a
CCM
7.3 a-e
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation,
maintenance andrepair
of renewable energy
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(Enel X - Home/Vivi
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CCM
7.3 a-e;
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216 Integrated Annual Report 2023
EBITDA (ordinary)
Ordinary gross operating profit (EBITDA) under the European taxonomy
2023
Substantial contribution criteria
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Electricity generation
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CCM
4.6
292
1.3
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Storage of electricity
82
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7,632 34.7
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E
Economic
activities
A. Taxonomy-eligible
activities
Electricity generation
from wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Transmission and
distribution of electricity
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
passenger transport
(Enel X - e-Bus)
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Energy
Effi ciency)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation,
maintenance andrepair
of renewable energy
technologies (7.6)
(Enel X - Home/Vivi
Meglio Unifamiliare)
CCM
4.3
CCM
4.1
CCM
4.5
CCM
4.10
CCM
4.9
CCM
7.3 d
CCM
6.3 a
CCM
7.3 a-e
CCM
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2023
Substantial contribution criteria
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Installation, maintenance
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energy technologies
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Storage)
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Installation, maintenance
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(e-Mobility)
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EBITDA of
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CCM 7.3
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217
2023
Substantial contribution criteria
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(“Do No Signifi cant Harm”)
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connections to plants
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4.29
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BIO 1.1
EBITDA of taxonomy-
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aligned activities) (A.2)
A.EBITDA of
taxonomy-eligible
activities (A.1 + A.2)
B. Taxonomy-non-
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450
2.0
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N/EL N/EL N/EL N/EL N/EL
0
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679
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13,777 62.7 62.7 0.0
0.0
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869
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n.a.
511
2.3
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n.a.
405
1.8
Enel X (only non-
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wholesale)
n.a.
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218 Integrated Annual Report 2023
2023
Substantial contribution criteria
DNSH criteria
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Others
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1.8
EBITDA of taxonomy-
non-eligible activities
8,192 37.3
Total (A + B)
21,969 100.0
CCM
CCA
WTR
CE
PPC
BIO
PROPORTION OF EBITDA/TOTAL EBITDA
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
59.7
0.0
0.0
0.0
0.0
0.0
62.7
0.0
0.0
0.0
0.0
0.0
(1) No EBITDA fi gures were considered eligible for climate adaptation objective as Enel does not provide adaptation solutions in accordance with Art icle 11 (b)
of EU taxonomy regulation.
(2) The analysis of the alignment of this activity was not perf ormed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coher-
ence with the timeline established in the Environmental Delegated Act.
(3) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.
European Union taxonomy
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Economic
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Professional services
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9.3
Installation, maintenance
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CCM
7.3 a-e
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Installation, maintenance
and repair of energy
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Installation, maintenance
and repair of renewable
energy technologies (7.6)
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Batt ery Energy
Storage)
Infrastructure for
personal mobility (6.13)
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces att ached
to buildings) (7.4)
(e-Mobility)
Manufacture of
renewable energy
technologies
Turnover of
environmentally
sustainable activities
(taxonomy-aligned)
(A.1)
CCM
7.6 a
CCM
7.6 f
CCM
6.13; 7.4
CCM
3.1
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
S
E
I
T
I
V
I
T
C
A
E
L
B
A
N
I
A
T
S
U
S
Y
L
L
A
T
N
E
M
N
O
R
I
V
N
E
1
.
A
millions
of euro
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
3,063
3.1
Y
N/EL N/EL N/EL N/EL N/EL
1,084
1.1
Y
N/EL N/EL N/EL N/EL N/EL
6,774
6.9
Y
N/EL N/EL N/EL N/EL N/EL
555
0.6
Y
N/EL N/EL N/EL N/EL N/EL
72
0.1
Y
N/EL N/EL N/EL N/EL N/EL
19,915 20.3
Y
N/EL N/EL N/EL N/EL N/EL
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
Y
Y
Y
Y
Y
Y
2.4
0.7
3.0
0.4
0.0
13.9
E
E
313
0.3
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.2
E
27
0.0
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
87
0.1
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
53
0.1
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
246
0.3
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
0.0
0.0
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
33,073 33.8
33.8 0.0(2)
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
21.4
442
0.5
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.3
E
Of which enabling %
22.0
22.0 0.0
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
14.8
E
Of which transitional %
0.0
0.0
0.0
T
A. Taxonomy-eligible
activities
Electricity generation
from wind power
CCM
4.3
CCM
4.1
CCM
4.5
CCM
4.6
CCM
4.10
CCM
4.9
CCM
7.3 d
CCM
6.3 a
CCM
7.3 a-e
CCM
7.3 a-e;
7.5 a;
7.6 a
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Electricity generation
from geothermal
energy
Storage of electricity
Transmission and
distribution of
electricity
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
passenger transport
(Enel X - e-Bus)
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Energy
Effi ciency)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation,
maintenance and repair
of renewable energy
technologies (7.6)
(Enel X - Home/Vivi
Meglio Unifamiliare)
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
I
I
I
I
S
E
T
V
T
C
A
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L
B
A
N
A
T
S
U
S
Y
L
L
A
T
N
E
M
N
O
R
V
N
E
1
A
I
.
220 Integrated Annual Report 2023
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
I
I
I
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S
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V
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C
A
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L
B
A
N
A
T
S
U
S
Y
L
L
A
T
N
E
M
N
O
R
V
N
E
1
A
I
.
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
Category
r
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f
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P
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3
2
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Economic
activities
)
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1
A
(
d
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g
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a
-
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m
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t
Professional services
related to energy
perf ormance of
buildings
(Enel X - Distributed
Energy)
CCM
9.3
Installation, maintenance
and repair of energy
effi ciency equipment
CCM
7.3 a-e
(Enel X - Condomini)
Installation, maintenance
and repair of energy
effi ciency equipment (7.3)
Installation, maintenance
and repair of renewable
energy technologies (7.6)
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Batt ery Energy
Storage)
Infrastructure for
personal mobility (6.13)
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces att ached
to buildings) (7.4)
(e-Mobility)
Manufacture of
renewable energy
technologies
Turnover of
environmentally
sustainable activities
(taxonomy-aligned)
(A.1)
CCM
7.3 d, e;
7.6 a
CCM
7.6 f
CCM
6.13; 7.4
CCM
3.1
millions
of euro
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
66
0.1
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
245
0.2
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
131
0.1
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
27
0.0
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
246
0.3
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
0.0
0.0
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
33,073 33.8
33.8 0.0(2)
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
21.4
Of which enabling %
22.0
22.0 0.0
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
14.8
E
Of which transitional %
0.0
0.0
0.0
T
European Union taxonomy
221
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
Category
Economic
activities
e
d
o
c
y
m
o
n
o
x
a
T
r
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v
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b
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2
0
2
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r
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millions
of euro
r
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f
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P
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3
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2
”
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“
%
%
)
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Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
Electricity generation
from hydropower
CCM
4.5
50
0.1
EL
N/EL N/EL N/EL N/EL N/EL
934
1.0
EL
N/EL N/EL N/EL N/EL N/EL
2,984
3.0
EL
N/EL N/EL N/EL N/EL N/EL
0.0
0.0 N/EL N/EL N/EL
EL(3) N/EL N/EL
0.0
0.0 N/EL N/EL N/EL N/EL N/EL
EL(3)
3,968 4.1
4.1
0.0
0.0
0.0
0.0
0.0
CCM
4.9
CCM
4.29
CE
5.2
BIO
1.1
Transmission and
distribution of electricity
(Peru and new
connections to plants
with threshold >
100 gCO2eq/kWh)
Electricity generation
from fossil gaseous
fuels (CCGT)
Sale of spare part s
Conservation, including
restoration, of habitats,
ecosystems and species
Turnover of taxonomy-
eligible but not
environmentally
sustainable activities
(taxonomy-non-
aligned activities) (A.2)
A. Turnover of
taxonomy-eligible
activities (A.1 + A.2)
B. Taxonomy-non-
eligible activities
37,041 37.9
37.9 0.0
0.0
0.0
0.0
0.0
29.3
0.0
1.3
6.6
0.0
0.0
7.9
I
Y
L
L
A
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N
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N
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E
-
N
O
N
-
Y
M
O
N
O
X
A
T
Electricity generation
from coal
n.a.
2,884
2.9
Electricity generation
from nuclear
n.a.
1,455
1.5
Electricity generation
from Oil&Gas (OCGT)(4)
n.a.
3,483
3.4
Enel X (only non-
elegible activities)
Trading activities
(Energy sales -
wholesale)
n.a.
559
0.5
n.a.
29,407 30.0
.
B
Market (Gas sales - end
customer)
n.a.
8,794
9.0
Market (Power sales -
end customer)
n.a.
40,930 41.7
222 Integrated Annual Report 2023
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
2023
Substantial contribution criteria
DNSH criteria
(“Do No Signifi cant Harm”)
Category
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
millions
of euro
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
-
N
O
N
-
Y
M
O
N
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X
A
T
.
B
0.0
1.3
6.6
0.0
0.0
7.9
37,041 37.9
37.9 0.0
0.0
0.0
0.0
0.0
29.3
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(
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Category
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1
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A
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P
Electricity generation
from hydropower
CCM
4.5
50
0.1
EL
N/EL N/EL N/EL N/EL N/EL
Sale of spare part s
0.0
0.0 N/EL N/EL N/EL
EL(3) N/EL N/EL
934
1.0
EL
N/EL N/EL N/EL N/EL N/EL
2,984
3.0
EL
N/EL N/EL N/EL N/EL N/EL
0.0
0.0 N/EL N/EL N/EL N/EL N/EL
EL(3)
3,968 4.1
4.1
0.0
0.0
0.0
0.0
0.0
Economic
activities
CCM
4.9
CCM
4.29
CE
5.2
BIO
1.1
Transmission and
distribution of electricity
(Peru and new
connections to plants
with threshold >
100 gCO2eq/kWh)
Electricity generation
from fossil gaseous
fuels (CCGT)
Conservation, including
restoration, of habitats,
ecosystems and species
Turnover of taxonomy-
eligible but not
environmentally
sustainable activities
(taxonomy-non-
aligned activities) (A.2)
A. Turnover of
taxonomy-eligible
activities (A.1 + A.2)
B. Taxonomy-non-
eligible activities
Electricity generation
from coal
n.a.
2,884
2.9
Electricity generation
from nuclear
n.a.
1,455
1.5
Electricity generation
from Oil&Gas (OCGT)(4)
n.a.
3,483
3.4
Enel X (only non-
elegible activities)
Trading activities
(Energy sales -
wholesale)
n.a.
559
0.5
n.a.
29,407 30.0
Market (Gas sales - end
customer)
n.a.
8,794
9.0
Market (Power sales -
end customer)
n.a.
40,930 41.7
Y
L
L
A
T
N
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M
N
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V
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a
T
Economic
activities
)
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2
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l
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1
A
(
d
e
n
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l
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-
y
m
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t
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t
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L
B
G
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L
E
I
Services, Holding &
Others
n.a.
2,058
2.1
Elisions and
adjustments
n.a.
-28,448 -29.0
Turnover of taxonomy-
non-eligible activities
61,122 62.1
Total (A + B)
98,163 100.0
CCM
CCA
WTR
CE
PPC
BIO
PROPORTION OF TURNOVER/TOTAL TURNOVER
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
33.8
0.0
0.0
0.0
0.0
0.0
37.9
0.0
0.0
0.0
0.0
0.0
(1) Revenue refers to the ordinary income statement.
(2) No revenues fi gures were considered eligible for climate adaptation objective as Enel does not provide adaptation solutions in accordance with Art icle 11 (b)
of EU taxonomy regulation.
(3) The analysis of the alignment of this activity was not perf ormed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coher-
ence with the timeline established in the Environmental Delegated Act.
(4) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.
European Union taxonomy
223
Capital expenditure (capex) under the European taxonomy
Capex
2023
Substantial contribution criteria
DNSH criteria
(”Do No Signifi cant Harm”)
Category
l
a
t
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p
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p
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millions
of euro
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1
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(
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b
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n
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t
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l
l
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P
)
C
P
P
(
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
1,125
7.9
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
14.7
2,400
16.8
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
18.9
463
3.2
Y
Y
N/EL N/EL N/EL N/EL
Y
136
1.0
Y
Y
N/EL N/EL N/EL N/EL
Y
1,322
9.3
Y
Y
N/EL N/EL N/EL N/EL
Y
5,376
37.7
Y
Y
N/EL N/EL N/EL N/EL
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
2.9
0.8
3.5
E
34.7
E
130
0.9
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.5
E
8
0.1
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
13
0.1
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
71
0.5
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.5
E
e
d
o
c
y
m
o
n
o
x
a
T
CCM
4.3 /
CCA
4.3
CCM
4.1 /
CCA
4.1
CCM
4.5 /
CCA
4.5
CCM
4.6 /
CCA 4.6
CCM
4.10 /
CCA
4.10
CCM
4.9 /
CCA 4.9
CCM
7.3 d /
CCA
7.3 d
CCM
6.3 a
/ CCA
6.3 a
CCM
7.3 a-e /
CCA
7.3 a-e
CCM
7.3 a-e;
7.5 a;
7.6 a /
CCA
7.3 a-e;
7.5 a;
7.6 a
Economic
activities
A. Taxonomy-eligible
activities
Electricity generation
from wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Electricity generation
from geothermal energy
Storage of electricity
Transmission and
distribution of
electricity
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
passenger transport
(Enel X - e-Bus)
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Energy
Effi ciency)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation,
maintenance and repair
of renewable energy
technologies (7.6)
(Enel X - Home/Vivi
Meglio Unifamiliare)
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
I
I
I
I
S
E
T
V
T
C
A
E
L
B
A
N
A
T
S
U
S
Y
L
L
A
T
N
E
M
N
O
R
V
N
E
1
A
I
.
224 Integrated Annual Report 2023
Capital expenditure (capex) under the European taxonomy
Capex
2023
Substantial contribution criteria
DNSH criteria
(”Do No Signifi cant Harm”)
2023
Substantial contribution criteria
DNSH criteria
(”Do No Signifi cant Harm”)
Category
e
d
o
c
y
m
o
n
o
x
a
T
l
a
t
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p
a
C
“
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b
A
3
2
0
2
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C
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C
f
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%
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)
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C
)
A
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)
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(
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C
)
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(
n
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(
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R
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(
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)
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(
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(
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M
n
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t
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l
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P
)
C
P
P
(
millions
of euro
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
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Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
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1,125
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14.7
2,400
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Y
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18.9
463
3.2
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Y
Electricity generation
from geothermal energy
CCA 4.6
136
1.0
Y
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N/EL N/EL N/EL N/EL
Y
Storage of electricity
1,322
9.3
Y
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N/EL N/EL N/EL N/EL
Y
5,376
37.7
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Y
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0.5
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Y
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Y
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0.0
13
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Y
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Y
Y
Y
Y
Y
Y
Y
0.1
E
Economic
activities
A. Taxonomy-eligible
activities
Electricity generation
from wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Transmission and
distribution of
electricity
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
passenger transport
(Enel X - e-Bus)
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Energy
Effi ciency)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation,
maintenance and repair
of renewable energy
technologies (7.6)
(Enel X - Home/Vivi
Meglio Unifamiliare)
CCM
4.3 /
CCA
4.3
CCM
4.1 /
CCA
4.1
CCM
4.5 /
CCA
4.5
CCM
4.6 /
CCM
4.10 /
CCA
4.10
CCM
4.9 /
CCM
7.3 d /
CCA
7.3 d
CCM
6.3 a
/ CCA
6.3 a
CCA 4.9
CCM
7.3 a-e /
CCA
7.3 a-e
CCM
7.3 a-e;
7.5 a;
7.6 a /
CCA
7.3 a-e;
7.5 a;
7.6 a
)
D
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CCM
6.13; 7.4
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6.13;
7.4
CCM
3.1 /
CCA
3.1
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activities
Professional services
related to energy
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Installation, maintenance
and repair of energy
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(Enel X - Condomini)
Installation,
maintenance and repair
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Installation, maintenance
and repair of renewable
energy technologies (7.6)
(Enel X - Distributed
Energy)
Installation, maintenance
and repair of renewable
energy technologies
(Enel X - Batt ery Energy
Storage)
Infrastructure for
personal mobility (6.13)
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces att ached
to buildings) (7.4)
(e-Mobility)
Manufacture of
renewable energy
technologies
Additions to right-of-
use assets (IFRS 16 par.
53 point h)
Capex of
environmentally
sustainable activities
(taxonomy-aligned)
(A.1)
)
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106
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337
2.4
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n.a.
486
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2.8
12,097 84.8
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52.4
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Y
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41.8
E
Of which transitional %
0.0
0.0
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T
European Union taxonomy
225
2023
Substantial contribution criteria
DNSH criteria
(”Do No Signifi cant Harm”)
Category
2023
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DNSH criteria
(”Do No Signifi cant Harm”)
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123
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269
1.9
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CCM
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CCA 4.9
CCM
4.29 /
CCA
4.29
Economic
activities
Electricity generation
from hydropower
Transmission and
distribution of electricity
(Peru and new
connections to plants
with threshold >
100 gCO2eq/kWh)
Electricity generation
from fossil gaseous
fuels (CCGT)
Additions to right-of-
use assets (IFRS 16 par.
53 point h)
Sale of spare part s
Conservation, including
restoration, of habitats,
ecosystems and species
Capex of taxonomy
-eligible but not
environmentally
sustainable activities
(taxonomy-non-
aligned activities) (A.2)
A. Capex of taxonomy-
eligible activities
(A.1 + A.2)
B. Taxonomy-non-
eligible activities
Electricity generation
from coal
n.a.
52
0.4
Electricity generation
from nuclear
n.a.
171
1.2
Electricity generation
from Oil&Gas (OCGT)(3)
n.a.
209
1.5
Enel X (only non-
elegible activities)
Trading activities
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wholesale)
n.a.
103
0.7
n.a.
58
0.4
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226 Integrated Annual Report 2023
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is not available.
2023
Substantial contribution criteria
DNSH criteria
(”Do No Signifi cant Harm”)
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is not available.
European Union taxonomy
227
Ordinary operating expenses (opex) under the European taxonomy
Opex (ordinary)
2023
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Economic
activities
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of energy effi ciency
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Installation,
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Installation,
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energy technologies
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Storage)
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Installation,
maintenance and repair
of charging stations
for electric vehicles in
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spaces att ached to
buildings) (7.4)
(e-Mobility)
Manufacture of
renewable energy
technologies
Opex of
environmentally
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a-e
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7.3 d, e;
7.6 a
CCM 7.6
f / CCA
7.6 f
CCM
6.13; 7.4
/ CCA
6.13; 7.4
CCM 3.1
3.1
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
S
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I
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B
A
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S
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Y
L
L
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M
N
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1
.
A
CCM 9.3
1
0.1
Y
N/EL N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
e
d
o
c
y
m
o
n
o
x
a
T
CCM 4.3
/ CCA
4.3
CCM 4.1
/ CCA
4.1
CCM 4.5
/ CCA
4.5
CCM 4.6
/ CCA
4.6
CCM
4.10 /
CCA
4.10
CCM 4.9
/ CCA
4.9
CCM 7.3
d / CCA
7.3 d
CCM 6.3
a / CCA
6.3 a
CCM
7.3 a-e /
CCA 7.3
a-e
CCM 7.3
a-e; 7.5
a; 7.6 a /
CCA 7.3
a-e; 7.5
a; 7.6 a
Economic
activities
A. Taxonomy-eligible
activities
Electricity generation
from wind power
Electricity generation
using solar photovoltaic
technology
Electricity generation
from hydropower
Electricity generation
from geothermal energy
Storage of electricity
Transmission and
distribution of
electricity
Installation, maintenance
and repair of energy
effi ciency equipment
(Enel X - Smart Lighting)
Urban and suburban
transport , road
passenger transport
(Enel X - e-Bus)
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Energy
Effi ciency)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and
repair of instruments
and devices for
measuring, regulation
and controlling energy
perf ormance of
buildings (7.5)
Installation, maintenance
and repair of renewable
energy technologies (7.6)
(Enel X - Home/Vivi
Meglio Unifamiliare)
Professional services
related to energy
perf ormance of
buildings
(Enel X - Distributed
Energy)
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
I
I
I
I
S
E
T
V
T
C
A
E
L
B
A
N
A
T
S
U
S
Y
L
L
A
T
N
E
M
N
O
R
V
N
E
1
A
I
.
228 Integrated Annual Report 2023
2023
Substantial contribution criteria
DNSH Criteria
(“Do No Signifi cant Harm”)
Category
i
y
r
a
n
d
r
o
f
o
n
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p
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3
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T
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a
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E
millions
of euro
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
0
0.0
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.1
E
0
0.0
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
0
0.0
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
2
0.2
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.3
E
0
0.0
Y
Y
N/EL N/EL N/EL N/EL
Y
Y
Y
Y
Y
Y
Y
0.0
E
864
68.4
68.4 0.0(1)
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
66.9
Economic
activities
e
d
o
c
y
m
o
n
o
x
a
T
Installation,
maintenance and
repair of energy
effi ciency equipment
(Enel X - Condomini)
Installation,
maintenance and repair
of energy effi ciency
equipment (7.3)
Installation,
maintenance and repair
of renewable energy
technologies (7.6)
CCM
7.3 a-e /
CCA 7.3
a-e
CCM 7.3
d, e; 7.6
a / CCA
7.3 d, e;
7.6 a
(Enel X - Distributed
Energy)
Installation,
maintenance and
repair of renewable
energy technologies
(Enel X - Batt ery Energy
Storage)
Infrastructure for
personal mobility (6.13)
Installation,
maintenance and repair
of charging stations
for electric vehicles in
buildings (and parking
spaces att ached to
buildings) (7.4)
(e-Mobility)
Manufacture of
renewable energy
technologies
Opex of
environmentally
sustainable activities
(taxonomy-aligned)
(A.1)
CCM 7.6
f / CCA
7.6 f
CCM
6.13; 7.4
/ CCA
6.13; 7.4
CCM 3.1
/ CCA
3.1
)
D
E
N
G
I
L
A
-
Y
M
O
N
O
X
A
T
(
I
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Y
L
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1
A
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.
Of which enabling %
44.6
44.6 0.0
0.0
0.0
0.0
0.0
Y
Y
Y
Y
Y
Y
Y
42.5
E
Of which transitional %
0.0
0.0
0.0
T
European Union taxonomy
229
2023
Substantial contribution criteria
DNSH Criteria
(“Do No Signifi cant Harm”)
Category
i
y
r
a
n
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f
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Y/N
Y/N
Y/N
%
E
T
0.0
3.9
8.9
0.0
0.0
12.8
79.7
Economic
activities
Electricity generation
from hydropower
Transmission and
distribution of
electricity (Peru and
new connections to
plants with threshold
>100 gCO2eq/kWh)
Electricity generation
from fossil gaseous
fuels (CCGT)
e
d
o
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y
m
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n
o
x
a
T
CCM 4.5
/ CCA
4.5
CCM 4.9
/ CCA
4.9
CCM
4.29 /
CCA
4.29
millions
of euro
%
%
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
1
0.1
EL
EL
N/EL N/EL N/EL N/EL
10
0.8
EL
EL
N/EL N/EL N/EL N/EL
86
6.8
EL
EL
N/EL N/EL N/EL N/EL
Sale of spare part s
CE 5.2
0
0.0 N/AM N/AM N/EL
EL(2) N/EL N/EL
Conservation, including
restoration, of habitats,
ecosystems and
species
Opex of taxonomy-
eligible but not
environmentally
sustainable activities
(taxonomy-non-
aligned activities) (A.2)
A.Opex of taxonomy-
eligible activities
(A.1 + A.2)
B. Taxonomy-non-
eligible activities
BIO 1.1
0
0.0 N/AM N/AM N/EL N/EL N/EL
EL(2)
97
7.7
7.7
0.0
0.0
0.0
0.0
0.0
961 76.1
76.1
0.0
0.0
0.0
0.0
0.0
Electricity generation
from coal
n.a.
48
3.8
Electricity generation
from nuclear
n.a.
80
6.3
Electricity generation
from Oil&Gas (OCGT)(3)
n.a.
101
8.0
Enel X (only non-
elegible activities)
Trading activities
(Energy sales -
wholesale)
Market (Gas sales -
end customer)
n.a.
4
0.3
n.a.
4
0.3
n.a.
3
0.2
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230 Integrated Annual Report 2023
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2023
Substantial contribution criteria
DNSH Criteria
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Category
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activities
e
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8.9
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79.7
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Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
Y; N;
N/EL
EL;
N/EL
/ CCA
1
0.1
EL
EL
N/EL N/EL N/EL N/EL
/ CCA
10
0.8
EL
EL
N/EL N/EL N/EL N/EL
86
6.8
EL
EL
N/EL N/EL N/EL N/EL
Sale of spare part s
CE 5.2
0
0.0 N/AM N/AM N/EL
EL(2) N/EL N/EL
BIO 1.1
0
0.0 N/AM N/AM N/EL N/EL N/EL
EL(2)
97
7.7
7.7
0.0
0.0
0.0
0.0
0.0
961 76.1
76.1
0.0
0.0
0.0
0.0
0.0
Economic
activities
Electricity generation
from hydropower
Transmission and
distribution of
electricity (Peru and
new connections to
plants with threshold
>100 gCO2eq/kWh)
Electricity generation
from fossil gaseous
fuels (CCGT)
CCM 4.5
4.5
CCM 4.9
4.9
CCM
4.29 /
CCA
4.29
Conservation, including
restoration, of habitats,
ecosystems and
species
Opex of taxonomy-
eligible but not
environmentally
sustainable activities
(taxonomy-non-
aligned activities) (A.2)
A.Opex of taxonomy-
eligible activities
(A.1 + A.2)
B. Taxonomy-non-
eligible activities
Electricity generation
from coal
n.a.
48
3.8
Electricity generation
from nuclear
n.a.
80
6.3
Electricity generation
from Oil&Gas (OCGT)(3)
n.a.
101
8.0
Enel X (only non-
elegible activities)
Trading activities
(Energy sales -
wholesale)
Market (Gas sales -
end customer)
n.a.
4
0.3
n.a.
4
0.3
n.a.
3
0.2
E
L
B
A
N
I
A
T
S
U
S
Y
L
L
A
T
N
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M
N
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A
T
.
B
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
millions
of euro
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
-
N
O
N
-
Y
M
O
N
O
X
A
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.
B
I
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S
E
T
V
T
C
A
E
L
B
G
I
L
E
I
Market (Power sales -
end customer)
n.a.
14
1.1
Services, Holding &
Others
n.a.
50
4.0
Elisions and
adjustments
n.a.
-1
-0.1
Opex of taxonomy-
non-eligible activities
303
23.9
Total (A + B)
1,264 100.0
CCM
CCA
WTR
CE
PPC
BIO
PROPORTION OF OPEX/TOTAL OPEX
Taxonomy-aligned
per objective
Taxonomy-eligible
per objective
68.4
0.0
0.0
0.0
0.0
0.0
76.1
76.0
0.0
0.0
0.0
0.0
(1) No Opex fi gures that may correspond to adaptation solutions – in accordance with Art icle 11 (1) (a) of EU taxonomy regulation – in business activities that
already contribute to climate mitigation have been allocated to climate adaptation objective, thus avoiding any potential double counting with the fi gures
provided on climate mitigation objective.
(2) The analysis of the alignment of this activity was not perf ormed for the purpose of the 2023 Sustainability Report and will be disclosed next year in coher-
ence with the timeline established in the Environmental Delegated Act.
(3) Electricity generation from fuel-oil and OCGT: it refers to thermal power plants that use fuel-oil and/or gas (OCGT), for which a breakdown by technology
is not available.
European Union taxonomy
231
Additional information on electricity generation from nuclear and gas
activities
The following figures are reported in accordance with the
Commission Delegated Regulation (EU) 2022/1214 of March
9, 2022, amending Delegated Regulation (EU) 2021/2139 as
regards economic activities in certain energy sectors and
Delegated Regulation (EU) 2021/2178 as regards specific
public disclosures for those economic activities.
Template 1 - Nuclear energy and fossil gas related activities
Nuclear energy related activities
1
2
3
The undertaking carries out, funds or has exposures to research, develop-ment, demonstration
and deployment of innovative electricity generation facili-ties that produce energy from nuclear
processes with minimal waste from the fuel cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades, using
best available technologies.
The undertaking carries out, funds or has exposures to safe operation of exist-ing nuclear
installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen pro-duction from nuclear energy, as well as their safety
upgrades.
Fossil gas related activities
4
5
6
The undertaking carries out, funds or has exposures to construction or opera-tion of electricity
generation facilities that produce electricity using fossil gase-ous fuels.
The undertaking carries out, funds or has exposures to construction, refur-bishment, and operation
of combined heat/cool and power generation facilities using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refur-bishment and operation
of heat generation facilities that produce heat/cool us-ing fossil gaseous fuels.
No
No
Yes
Yes
No
No
As shown in the table above, the only applicable activities
for Enel concern the safe operation of existing nuclear
plants and the operation of power generation plants using
gaseous fossil fuels. The former activity is 100% non-el-
igible, while the latter is 100% eligible non-aligned. Ac-
cordingly, the following tables refer to templates 4 and 5
included in the annexes to the Complementary Delegat-
ed Act. The remaining templates in the Delegated Act are
not applicable to Enel’s business model. Furthermore, the
information only refers to the climate change mitigation
objective, as it is the prevailing objective for the Group.
232 Integrated Annual Report 2023
Template 4 - Taxonomy-eligible but not taxonomy-aligned economic activities
Turnover (Revenue) under the European taxonomy
Economic activities
Amount in millions of euro
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
2,984
984
3,968
%
3.0
1.0
4.0
Climate change mitigation
Capex (Capital expenditure) under the European taxonomy
Economic activities
Amount in millions of euro
%
Climate change mitigation
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
269
146
415
1.9
1.0
2.9
Operating expenses (Opex) under the European taxonomy
Economic activities
Amount in millions of euro
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
86
11
97
%
6.8
0.9
7.7
Climate change mitigation
Ordinary gross operating profit (EBITDA) under the European taxonomy
Economic activities
Amount in millions of euro
%
Climate change mitigation
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activities in the denominator of the applicable KPI
450
229
679
2.0
1.0
3.0
European Union taxonomy
233
Template 5 - Taxonomy non-eligible economic activities
Turnover (Revenue) under the European taxonomy
Economic activities
Amount in millions of euro
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-non-eligible economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI
1,455
59,667
61,122
%
1.5
60.8
62.3
Climate change mitigation
Capex (Capital expenditure) under the European taxonomy
Economic activities
Amount in millions of euro
%
Climate change mitigation
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-non-eligible economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI
171
1.2
1,564
11.0
1,735
12.2
Operating expenses (Opex) under the European taxonomy
Economic activities
Amount in millions of euro
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-non-eligible economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI
80
223
303
%
6.3
17.6
23.9
Climate change mitigation
Ordinary gross operating profit (EBITDA) under the European taxonomy
Economic activities
Amount in millions of euro
%
Climate change mitigation
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-non-eligible economic activities not referred
to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI
511
2.3
7,681
8,192
35.0
37.3
234 Integrated Annual Report 2023
SIGNIFICANT
EVENTS IN 2023
Enel places new perpetual hybrid bonds
for €1.75 billion to refinance some of its
outstanding hybrid bonds
Enel Perú signs an agreement to sell its
distribution, supply and advanced energy
services’ assets to CSGI
On January 9, 2023, Enel SpA launched the issue of non-con-
vertible, subordinated, perpetual hybrid bonds for institution-
al investors on the European market, denominated in euros,
with an aggregate principal amount of €1.75 billion.
Enel launches a €1.5 billion sustainability-
linked bond
On February 14, 2023, Enel Finance International NV launched
a dual-tranche sustainability-linked bond for institutional in-
vestors for a total of €1.5 billion. The new issue envisages for
the first time the use by Enel of multiple Key Performance
Indicators (KPIs) per tranche. One tranche of the bond com-
bines a KPI linked to the EU taxonomy with a KPI linked to the
United Nations Sustainable Development Goals (SDGs). The
other tranche of the bond is linked to two KPIs related to the
Group’s full decarbonization path through direct and indirect
reductions of greenhouse gas emissions.
Disposal of thermal generation activities in
Argentina
On February 17, 2023, the Enel Group, acting through
its subsidiary Enel Argentina, reached an agreement for
the sale to the energy company Central Puerto SA of the
Group’s stake in the thermal generation company Enel
Generación Costanera for €42 million.
In addition, on March 29, 2023, YPF and Pan American Sur
SA exercised their respective pre-emption rights for:
• the purchase by YPF of the shares held by Enel Américas
in Inversora Dock Sud SA and indirectly of the shares it
holds in Central Dock Sud SA; and
• the purchase by Pan American Sur SA of the shares held
by Enel Argentina in Central Dock Sud SA.
The sale closed on April 14, 2023 for a total of about €48
million.
For more information on the associated financial effects,
please see note 9 “Main acquisitions and disposals during
the year”.
On April 7, 2023, Enel Perú SAC, controlled by Enel SpA
through Enel Américas SA, reached an agreement with the
Chinese company China Southern Power Grid International
(HK) Co. Ltd (CSGI) to sell the entire equity stakes held by
Enel Perú in the power distribution and supply company
Enel Distribución Perú SAA and in Enel X Perú SAC, the latter
providing advanced energy services.
The agreement establishes that CSGI will acquire Enel Perú’s
interests in Enel Distribución Perú SAA (equal to around
83.15% of the share capital) and Enel X Perú SAC (equal to
100% of the share capital), for a total of around $2.9 billion,
equivalent to an enterprise value of about $4 billion (on a
100% basis).
Enel finalizes joint venture deal with INPEX
Corporation by selling 50% of Enel Green
Power Australia
On September 29, 2023, Enel SpA, acting through its whol-
ly-owned subsidiary Enel Green Power SpA closed the sale
to INPEX Corporation (INPEX) of 50% of two entities that
own all of the Group’s renewables operations in Australia,
namely Enel Green Power Australia (Pty) Ltd and Enel Green
Power Australia Trust. The sale was closed following the
fulfillment of all conditions set out in the sale agreement
signed on July 13, 2023.
In line with the above agreement, INPEX paid a total of about
€142 million.
Upon the transaction’s closing, Enel Green Power SpA and
INPEX will jointly control Enel Green Power Australia, over-
seeing the company’s current renewable generation port-
folio and continuing to develop its project pipeline, seeking
to increase its installed capacity.
For more information on the associated financial effects,
please see note 9 “Main acquisitions and disposals during
the year”.
Significant events in 2023
235
Enel launches a sustainability-linked share
buyback program serving its 2023 Long-
Term Incentive Plan
On October 5, 2023, the Board of Directors of Enel SpA,
implementing the authorization granted by the Share-
holders’ Meeting of May 10, 2023 and in compliance with
the relevant terms previously disclosed to the market, ap-
proved the launch of a share buyback program for a to-
tal of 4.2 million shares, equal to approximately 0.041% of
Enel’s share capital.
The program, which will run from October 16, 2023 until
no later than January 18, 2024, is designed to serve the
2023 Long-Term Incentive Plan for the management of
Enel and/or of its subsidiaries pursuant to Article 2359
of the Italian Civil Code, which was also approved by the
Shareholders’ Meeting on May 10, 2023.
Since the beginning of the program, Enel has purchased
3,377,224 treasury shares (equal to about 0.0332% of
share capital), for a total €21,007,908.138. Considering the
treasury shares already owned, as at December 29, 2023,
Enel held a total 9,262,330 treasury shares, equal to about
0.0911% of the share capital.
Enel signs agreement to sell a geothermal
and solar portfolio in the United States to
Ormat
On October 23, 2023, Enel SpA, acting through its ful-
ly-owned subsidiary Enel Green Power North America Inc.
(EGPNA), signed an agreement with Ormat Technologies
Inc., for the sale of a renewable asset portfolio in the Unit-
ed States.
The sale was finalized on January 4, 2024 at a price of $271
million, equivalent to €250 million, subject to customary
transactional adjustments.
The assets sold include EGPNA’s entire geothermal port-
folio as well as a number of small solar plants, with a total
capacity of about 150 MW of operating plants.
Enel closes the sale of a photovoltaic
generation portfolio in Chile to Sonnedix
On October 25, 2023, Enel SpA and its listed subsidiary
Enel Chile SA closed the sale of their entire equity inter-
ests in the share capital of Arcadia Generación Solar SA,
a Chilean company which owns a portfolio of four oper-
ating PV plants with a total installed capacity of about 416
MW, to Sonnedix, an international renewable energy pro-
ducer. The transaction was closed following the fulfillment
of all conditions set forth in the stock purchase agree-
ment signed on July 12, 2023, including receipt of clear-
ance from the Chilean antitrust authority Fiscalía Nacional
Económica (FNE).
Pursuant to the above agreement, the purchaser paid a
total of €535 million, corresponding to the 100% enter-
prise value agreed by the parties. The transaction resulted
in the recognition of a capital gain of €195 million.
For more information on the associated financial effects,
please see note 9 “Main acquisitions and disposals during
the year”.
Enel finalized the sale of its Romanian
operations to PPC
On October 25, 2023, Enel SpA finalized the sale to the
Greek company Public Power Corporation SA (PPC) of all
the interests held by the Enel Group in Romania, following
the fulfillment of all the conditions set forth in the related
sale agreement, signed on March 9, 2023.
In line with the agreement, PPC paid a total of about
€1,241 million. An earn-out mechanism is also envisaged,
involving a potential further post-closing payment based
on the future value of the retail business.
The transaction had a negative impact on profit or loss for
the year of €847 million, of which €655 million reflecting
the release of a currency translation reserve, €15 million in
respect of transaction costs connected with the sale and
the recognition of €177 million in impairment losses on the
assets prior to the sale (net of taxes).
For more information on the associated financial effects,
please see note 9 “Main acquisitions and disposals during
the year” and note 7 “Discontinued operations”.
Enel reaches agreement to sell Group’s
Peruvian generation assets
On November 22, 2023, Enel SpA announced that its sub-
sidiaries Enel Américas SA and Enel Perú SAC, the latter
controlled by Enel through the Chilean listed company
Enel Américas, have signed an agreement with Niagara
Energy SAC, a Peruvian company controlled by the global
investment fund Actis, for the sale of all the equity stakes
held by the Enel Group in power generation companies
Enel Generación Perú SAA and Compañía Energética Ve-
racruz SAC.
Specifically, the agreement establishes that Niagara En-
ergy will acquire the stakes held by Enel Perú and Enel
Américas in Enel Generación Perú’s share capital (equal to
approximately 66.50% and 20.46%, respectively) as well as
those held by Enel Perú in Compañía Energética Veracruz
236 Integrated Annual Report 2023
(equal to 100%) for a total of about $1.4 billion (about €1.3
billion), equivalent to an overall enterprise value of around
$2.1 billion (about €1.9 billion, on a 100% basis).
This consideration is subject to adjustments customary
for these kinds of transactions in consideration of the
time between signing and closing.
The closing of the sale, which is expected by the 2nd Quar-
ter of 2024, is subject to certain conditions customary for
these kinds of transactions, including receipt of clearance
from the competent antitrust authorities in Peru.
Enel finalizes the sale of 50% of Enel
Green Power Hellas to Macquarie Asset
Management
On December 29, 2023, Enel SpA announced that, acting
through its wholly-owned subsidiary Enel Green Power
SpA (EGP), it had finalized the sale of 50% of Enel Green
Power Hellas (EGPH), EGP’s fully-owned renewable subsid-
iary in Greece, to Macquarie Asset Management, acting
through the Macquarie Green Investment Group Renew-
able Energy Fund 2, following the fulfillment of all the con-
ditions customary for these kinds of transactions, includ-
ing receipt of clearance from the competent antitrust au-
thorities, set out in the sale agreement signed on July 26,
2023. In line with that agreement, the total price received
by EGP was €351 million.
Following the transaction’s closing, EGP and Macquarie
Asset Management entered into a shareholder agreement
which envisages joint control of EGPH in order to co-man-
age the company’s current renewable generation portfolio
as well as continuing to develop its project pipeline, further
increasing its installed capacity.
The transaction generated a positive impact on Enel Group
profit of €422 million (including the fair value remeasure-
ment of the remaining equity investment).
For more information on the associated financial effects,
please see note 9 “Main acquisitions and disposals during
the year” and note 7 “Discontinued operations”.
Significant events in 2023
237
238 Integrated Annual Report 2023
REGULATORY AND
RATE ISSUES
The European regulatory framework
Developments in the “Fit for 55”
and REPowerEU packages
The European Commission’s “Fit for 55” package, present-
ed in July 2021, proposed raising the EU’s 2030 targets
in support of a more ambitious climate goal of reducing
greenhouse gas emissions by 55% by 2030 and achieving
climate neutrality by 2050. In 2023 the European institu-
tions continued discussions over the various dossiers in
the “Fit for 55” package” and its adaptation to the chang-
es introduced by REPowerEU.
Renewable energy and energy efficiency
In October 2023 the revision of the Renewable Energy Di-
rective was published in the Official Journal of the Europe-
an Union. Member States have 18 months to transpose it
into national law. The Directive raises the share of renew-
able energy in the European Union’s overall energy con-
sumption to 42.5% by 2030, with an additional 2.5% indic-
ative top-up to allow the target of 45% to be achieved. All
Member States will have to contribute to achieving more
ambitious sector-specific targets in transport, indus-
try and buildings. Moreover, the Directive provides for an
acceleration in permit procedures for renewable energy
projects. Member States shall design renewables acceler-
ation areas where renewable energy projects will undergo
simplified and fast permit-granting processes. Renewable
energy deployment will also be presumed to be of “over-
riding public interest”, which will limit the grounds of legal
objections to new installations.
EU institutions have also reached an agreement to raise to
11.7% the EU energy efficiency target by 2030, from the ini-
tial 9% of the “Fit for 55” package, including an increase in
the Member State’s annual energy saving obligation, which
should gradually increase from 2024 to 2030. Moreover,
in 2023 European institutions reached an agreement on
the European Energy Performance of Buildings Directive
(EPBD). The new provisions include significant innovations
in reducing the use of fossil fuels in buildings, developing
charging infrastructure for electric mobility, increasing the
rate of renovation and efficiency of the building stock, as
well as integrating solar systems into buildings.
Mobility
In October 2023, the new Alternative Fuels Infrastructure
Regulation (AFIR) was published in the Official Journal of
the European Union, establishing – for the first time in the
EU – mandatory targets for the development of charging
infrastructure for light and heavy vehicles and for the in-
frastructure to supply electricity to vessels moored in
ports in the different Member States. Again in 2023, the
ReFuelEU Aviation and FuelEU Maritime Regulations, tar-
geted at reducing greenhouse gas emissions for aviation
and maritime transport, setting increasingly stringent
emission limits for ships and planes, and envisaging mea-
sures to promote renewable fuels, including hydrogen and
renewable or low-carbon electricity, were published in the
Official Journal of the European Union. At the end of 2023,
the European Parliament and Council reached an agree-
ment on a proposal for the revision of the Trans-Europe-
an Transport Network (TEN-T) Regulation, which seeks to
close regional, economic and social gaps through the de-
velopment of interconnected air transport, roadway, rail-
way and maritime network infrastructures, directly con-
nected with the Connecting Europe Facility (CEF), which
defines projects of common interest (PCIs) eligible for CEF
funding.
The revision of CO2 standards for new cars and light com-
mercial vehicles, published in the Official Journal of the Eu-
ropean Union in the 1st Half of 2023, increase emission
reduction targets for 2030 and requires that all new light
vehicles sold from 2035 be zero-emission vehicles. In this
respect, a further revision is expected, which should allow
internal combustion vehicles powered only by synthetic
fuels to be placed on the market even after 2035.
Regulatory and rate issues
239
Hydrogen and decarbonized gas market
package and definition of renewable
hydrogen
As required by the Renewables Directive of 2018, in the 1st
Half of 2023 two delegated acts aimed at defining the cri-
teria by which hydrogen produced from electricity can be
considered renewable were published in the Official Jour-
nal of the European Union and are directly applicable in all
EU countries, ensuring clarity on the rules for the produc-
tion of renewable hydrogen. The main criteria concern the
principles of additionality for renewable plants that power
the electrolyzers and the spatial and temporal correlation
between electrolyzers and renewable plants, as well as the
method to use to calculate the reduction of greenhouse
gas emissions deriving from its use.
In December 2023 the EU institutions reached a provision-
al political agreement on the package for the decarbon-
ization of the gas market, the proposal for which dates
back to December 2021. The new regulation and directive
included in the package establish a framework facilitat-
ing the penetration of renewable and low-carbon gases
into the system, including hydrogen, and rules governing
the market and organization of the sector, including infra-
structure aspects. The provisional agreement needs to be
endorsed and formally adopted by the Parliament and the
Council in 2024 before publication in the Official Journal of
the European Union.
Digital technology
During the 2nd Half of 2023 the European Commission
finalized several new proposals for the digital sector im-
pacting the energy industry.
In December 2023, EU legislators provisionally approved
the Artificial Intelligence Act, the first-ever legal frame-
work on AI worldwide, aimed at ensuring that EU law, fun-
damental rights and sustainability principles are protected
from high-risk AI systems; however, the package has yet to
be formally adopted. Complementing the AI Act, a political
agreement was reached on the revised Product Liability
Directive, ensuring that people can sue for compensation
for damage caused by a defective product, including dig-
ital products.
With regard to data policies, in June 2023 the Commis-
sion adopted the Implementing Regulation laying down
interoperability requirements and non-discriminatory
Batteries
and transparent procedures for access to metering and
consumption data for end users and eligible parties. Fur-
thermore, in December 2023, the European regulation es-
tablishing harmonized rules on fair access to data and its
use was published in the Official Journal of the European
Union, giving Member States until September 12, 2025 to
implement the regulation.
Finally, with regard to cyber security, in October 2023 the
Commission published a draft implementing regulation
establishing the European Common Criteria-based cyber
security certification scheme for information and com-
munication technologies. That draft is linked to the Cyber
Resilience Act, the proposal for a European regulation
on cyber security requirements for products with digital
elements, such as smart meters, on which EU legislators
reached a political agreement in December 2023.
Published in the Official Journal of the European Union in
July 2023, the new European regulation on batteries, the
proposal for which dates back to 2020, pursues three
objectives: to strengthen the functioning of the internal
market, ensuring a level playing field through a common
set of rules; to promote a circular economy; and to reduce
environmental and social impacts at all stages of the bat-
tery life cycle.
240 Integrated Annual Report 2023
State aid
New State aid regulations
As from June 30, 2023, the revised General Block Exemp-
tion Regulation (GBER) came into force, which will facili-
tate, simplify and accelerate support for the EU’s green
and digital transition, while preserving a level playing field
in the single market. The GBER defines specific categories
of State aid that, under certain conditions, 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.
Major changes were made to the sections relating to cli-
mate, environmental protection and energy, including an
update of the notification thresholds, in response to the
energy crisis. The revised GBER expands the scope for
Member States to finance different types of green proj-
ects, such as those to reduce CO2 emissions, sustainable
mobility and charging infrastructure; the introduction of
new green conditions that large energy-intensive busi-
nesses must meet to receive aid in the form of reduced
tax rates or exemptions from payment of system charges;
energy efficiency and storage, including batteries; sustain-
able hydrogen and renewable energy communities. Finally,
the definition of energy infrastructure has been extend-
ed to hydrogen and CO2 as long as it is accessible to third
parties. The scope has also been extended geographically
to the entire territory and no longer just to areas receiving
assistance.
The State aid COVID Temporary Framework (TF COVID)
concerning solvency and investments for economic de-
velopment for sustainable growth expired on December
31, 2023. That date marked the end of the phasing out
period which started during 2022. We have worked with-
in the Temporary Framework to disburse aid for national
measures intended to boost employment even in disad-
vantaged areas.
The Temporary Crisis Framework (TCF) was most recent-
ly revised on March 9, 2023. The new framework was re-
named Temporary Crisis and Transition Framework (TCTF)
in order to underline the nature of the revision, aimed at
fostering support measures in sectors which are key for
the transition to a zero-emission economy, in line with
the Green Deal Industrial Plan. The TCTF will also allow the
disbursement of aid until December 31, 2025. In addition
to direct aid to meet the additional costs associated with
the rise in the price of gas and electricity, the system also
provides for schemes for accelerating the rollout of re-
newable energy and energy storage. More specifically, the
investment support can cover up to 100% of total costs if it
is granted through a tender procedure. This also includes
aid for decarbonization through electrification and the
use of renewable and electrolytic hydrogen. The main new
aspect regards investment support for the mass manufac-
ture of batteries, solar panels, wind turbines, heat-pumps,
electrolyzers and carbon capture usage and storage as
well as for production of key components. Their amount
varies according to the region in which the investment is
to be made, ranging from 15% of costs and a maximum of
€150 million per company in the richest regions, to 35% of
costs and a maximum of €350 million per company in dis-
advantaged regions. The most relevant aspect of this type
of aid is the so-called “matching aid”: an EU Member State
could – under certain conditions – match the support of-
fered to a company in a non-EU state.
On November 20, the Commission prolonged by six
months, until June 30, 2024, a limited number of sec-
tions of the TCTF. In particular, it put off the phasing out
of the provisions enabling Member States to grant limited
amounts of aid (section 2.1) with an increase in aid ceil-
ings to compensate for high energy prices (section 2.4)
to cover the winter heating period. The other provisions
of the TCTF, among which liquidity support in the form of
State guarantees or in the form of subsidized loans and
measures aimed at supporting the reduction of electricity
consumption, were not affected and expired on Decem-
ber 31, 2023. Sections aimed at accelerating the green
transition and reducing dependence on fuels remain in
force until December 31, 2025.
Moreover, the European Commission extended until De-
cember 31, 2025 the possibility of granting State aid for
rescuing and restructuring non-financial undertakings in
difficulty according to the related guidelines of 2014. The
rest of the guidelines remain applicable without further
changes and their extension is necessary to avoid a legal
vacuum after December 31, 2023.
On June 2, 2023, the European Commission published
a communication in the Official Journal of the Europe-
an Union which establishes the rules for any changes to
regional aid maps. EU countries can propose updates to
their maps for the 2022-2027 period.
Regulatory and rate issues
241
Cases of State aid
In 2023, we continued to monitor the funds authorized by
the European Commission for the countries of importance
to the Group in relation to TF COVID, TCF and TCTF.
On February 7, 2023, the Commission approved a €1.36 bil-
lion Greek scheme to partially compensate energy-intensive
companies for higher electricity prices resulting from the in-
direct costs of emissions under the ETS.
On February 17, 2023, the Commission approved a €460 mil-
lion Spanish measure supporting the ArcelorMittal España
project aimed at a partial decarbonization of its steel pro-
duction in Gijón, where it operates two blast furnaces pro-
ducing liquid hot metal from a mixture of iron ore, coke and
limestone. The aid will support the construction of a plant for
the production of direct reduced iron based on renewable
hydrogen.
On March 6, 2023, the Commission approved the amend-
ments to an existing Italian guarantee scheme, including an
up to €3 billion budget increase for the reinsurance of nat-
ural gas and electricity trade credit risk in the context of the
Ukraine crisis. The original scheme, approved on September
30, 2022, seeks to limit the risks that insurers currently face
in offering customers trade credit insurance. Managed by
SACE, the Italian export credit agency, the scheme ensures
that trade credit insurance will continue to be available to
businesses, enabling them to avoid having to pay their en-
ergy bills in advance or within few weeks, thus reducing their
immediate liquidity needs.
On March 27, 2023, the Commission approved the reintro-
duction of a €396 million Spanish scheme to reduce elec-
tricity consumption levies imposed on energy-intensive en-
terprises.
On April 3, 2023, the Commission approved a €450 million
Italian scheme to support investments in the integrated pro-
duction of renewable hydrogen and renewable electricity in
brownfield sites.
On April 24, 2023, the Commission approved a €450 million
Spanish scheme to support gas-intensive manufacturing
companies in the context of Russia’s war against Ukraine.
On April 25, 2023, the Commission approved a prolonged
and amended State aid measure issued by Spain and Por-
tugal to reduce wholesale electricity prices on the Iberian
market (MIBEL), lowering the input costs of fossil fuel power
plants.
On May 11, 2023, the Commission approved a €837 million
Spanish scheme to support the production of batteries for
electric and related vehicles, for the benefit of battery man-
ufacturers, their key components and related raw materials.
On May 17, 2023, the Commission approved the amend-
ments to an existing Greek scheme, including an up to €600
million budget increase to support non-domestic electricity
users in the context of the Ukraine crisis.
On June 19, 2023, the Commission approved, within the
TCTF, two Italian schemes totaling €535 million to finance
contribution relief for newly hired young people and women
until December 31, 2023.
On July 7, 2023, the Commission approved a €350 million
Spanish scheme, entirely funded under the NRRP and oper-
ational until June 2026, to support the construction and op-
eration of electricity storage plants.
On August 8, 2023, the Commission approved, within the
TCTF, an Italian scheme totaling €100 million to support com-
panies active in Sardinia.
On August 9, 2023, the Commission approved a €150 million
Italian scheme denominated “Sicilian Energy Bonus” to sup-
port companies active in Sicily.
On October 9, 2023, the Commission approved a €100 mil-
lion Italian scheme in the form of direct subsidies to support
the production of electrolyzers within the TCTF.
On October 31, 2023, the Commission approved a €61.5
million Italian scheme exempting private employers from the
payment of social security contributions for the hiring of dis-
advantaged workers.
On November 10, 2023, the Commission approved a €1.7 bil-
lion Italian scheme supporting agrivoltaic installations, fund-
ed under the NRRP and operational until December 31, 2024.
The scheme provides investment grants for the construction
and operation of new photovoltaic plants in Italy, with a total
capacity of 1.04 GW and an annual electricity generation of
at least 1,300 GWh, to become operational by June 30, 2026.
On November 20, 2023, the Commission approved amend-
ments to a Spanish scheme, already approved in 2022, to
compensate energy-intensive companies with the partial re-
imbursement of indirect emissions costs under the EU ETS.
The amendments essentially consist in a budget increase of
€5.61 billion leading to an overall budget of €8.51 billion to
partially compensate those firms for an increase in electricity
bills due to the impact of the price of carbon on electricity
costs.
On November 22, 2023, the Commission approved a €5.7
billion Italian scheme to support renewable energy commu-
nities, in particular generation and self-consumption from
renewable power generation installations, as well as the ex-
pansion of existing ones. The part of the scheme financed by
the National Recovery and Resilience Plan will run until De-
cember 31, 2025, while the remaining part of the scheme will
run until December 31, 2027.
On November 28, 2023, the Commission approved, within
the TCTF, a €1.1 billion Spanish scheme to support invest-
ments in the production of equipment needed to facilitate
the transition to a zero-emission economy, targeting man-
ufacturers of batteries, solar panels, wind turbines, heat
pumps and electrolyzers, as well as key components main-
ly designed and used as direct inputs for the production of
such equipment or related critical raw materials necessary
for their production.
On December 19, 2023, the Commission authorized the
amendment of a 2017 Italian support scheme (SA. 38635) for
242 Integrated Annual Report 2023
electricity-intensive firms in the form of reductions in certain
levies on electricity consumption with the aim of mitigating
the risk that, due to these levies, these businesses will relo-
cate their activities to locations outside the European Union
with less ambitious climate policies.
On December 21, 2023, the Commission approved, under EU
State aid rules, a €17.7 billion Italian scheme to support the
construction and operation of a centralized electricity stor-
age system with a joint capacity of more than 9 GW/71 GWh.
The scheme will run until December 31, 2033.
We continued to provide support in 2023 to the assessment
of the State aid aspects of priority projects for the Group un-
der the NRRP.
More specifically, on July 20, 2023 the European Commission
has approved an €89.5 million Italian measure consisting in
a direct grant through the Recovery and Resilience Facility
to support 3SUN’s investment for the expansion of its solar
panels factory. Discussions in the 1st Half of 2023 with the
DG Competition in Brussels before, during and after the State
aid notification were fundamental in obtaining approval.
The evaluation of IPCEI (Important Projects of Common Euro-
pean Interest) hydrogen projects and the related conditions
for granting already approved State aid continues.
Regulatory framework by business line
Thermal Generation and Trading
Italy
Generation and the wholesale market
Rules governing plants essential to the electrical supply
system
Within the rules governing ancillary services, certain plants
are classified as essential due to their territorial location,
their technical characteristics and their relevance for Ter-
na SpA in resolving specific critical issues with the grid. In
return for meeting availability and market supply require-
ments, these plants receive specific remuneration deter-
mined by the Regulatory Authority for Energy, Networks
and the Environment (hereinafter “ARERA” or the “Author-
ity”). The obligations and specific remuneration granted
are determined each year on the basis of a procedure for
identifying, for each plant, the specific regulatory regime
among those provided for in the rules governing essential
plants, namely:
• alternative contracts pursuant to Article 65-bis of An-
nex A to ARERA Resolution no. 111/2006, which provides
for the payment of a fixed premium based on the power
identified as essential for the management of the elec-
tricity system against the obligation to offer that power
on the ASM (Ancillary Services Market) within maximum/
minimum price limits for increasing/decreasing quanti-
ties and in the hours defined ex-ante by ARERA. The de-
cision to opt for this contract is left to the operator in the
phase preceding the publication of the list of essential
systems and entails exclusion from the other regimes in-
dicated below for the contracted capacity;
• ordinary regime pursuant to Article 64 of the aforemen-
tioned Resolution, which establishes requirements to
supply the DAM (Day-Ahead Market) and the IM (Intraday
Market) solely for quantities of power requested by Ter-
na, against payment of the higher specific variable costs
of the units involved. Outside the hours and quantities
specified by Terna, supply on the DAM and IM is free of
constraints. Finally, all supply on the ASM is subject to an
obligation to offer quantities at the specific variable cost
calculated for the production unit;
• the cost reimbursement regime pursuant to Article 65
of the aforementioned Resolution, which, in return for
meeting supply obligations for the entire power of the
plant and at all hours of the year, provides for payment
of fixed costs, including a return on invested capital and
variable costs, net of revenue generated. Participation in
this regime is subject to an ARERA decision upon ap-
plication of the operator. The reimbursement is settled
by ARERA in the form of payments on account and pay-
ment of a final balance, based on requests submitted by
the operator.
With Resolution no. 532/2022/R/eel ARERA set the invest-
ed capital remuneration rate for essential plants eligible for
reimbursement of costs for 2023 at 11.9%. For 2024, with
Resolution no. 481/2023/R/eel, WACC was set at 9.7%.
Essential plant designations for Enel plants in 2023 and
2024
For 2023 with Resolution no. 742/2022/R/eel the Sulcis,
Portoferraio and Assemini plants were declared eligible
for the cost reimbursement scheme. With Resolution no.
624/2023/R/eel, these same plants were declared eligible
for the cost reimbursement scheme also for 2024, with
the exception of the Portoferraio plant which was not con-
sidered essential by Terna for the year.
Regulatory and rate issues
243
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 2023.
For 2023 and 2024 the remainder of essential capacity
was contracted under alternative contracts to the essen-
tial plant regime (pursuant to Article 65-bis of Annex A of
Resolution no. 111/2006).
Maximization of thermal generation by plants powered
by non-gas alternative fuels
In order to tackle the gas supply problems for the
2022/2023 thermal year, Decree Law 14/2022 (the so-
called “Ukraine Decree”) allowed the Ministry of Ecological
Transition (MiTE, now Ministry of the Environment and En-
ergy Security - MASE) to require Terna to maximize ther-
mal generation by plants with a capacity of over 300 MW
powered by non-gas alternative fuels, as well as genera-
tion by bioliquid plants and – with Law of April 21, 2023
– biomass. The decree law also contains measures for the
competent institutions to cooperate on issuing environ-
mental waivers that may be necessary for the operation
of plants whose output is to be maximized and ask ARERA
to establish the supply rules for those plants and the re-
imbursement of costs incurred following the activation of
the measure.
With its Guidelines of September 1, 2022, the MiTE (now
MASE) asked Terna to draw up and implement a gas-al-
ternative production maximization plan for the September
19, 2022 - March 31, 2023 period to enable a savings of 1.8
billion cubic meters of gas, minimizing recourse to envi-
ronmental waivers.
Terna has identified the plants that will take part and, on
September 19, launched the production maximization
plan. Enel’s Sulcis, Fusina, Torrevaldaliga Nord, and Brindisi
plants are included.
With its Resolution no. 430/2022/R/eel, ARERA estab-
lished that:
• for plants that are already deemed essential plants eli-
gible for the cost reimbursement scheme (Sulcis plant),
the existing supply and production cost reimbursement
rules will continue to apply;
• for other plants, the operator is required to present
bids relating to the maximization plan announced by
Terna at the minimum technical price on the energy
markets and at the recognized variable cost (RVC) for
each unit of generation in the ASM. Terna pays to the
operator any positive difference between the energy
market price and the RVC; while Terna pays to opera-
tors whose bids are accepted for sale on the ASM the
day-ahead market zonal prices, if higher than the RCV.
If revenue is not sufficient to cover even the fixed costs
incurred during the maximization period, the operator
can request that ARERA reimburse these costs, exclud-
ing the remuneration and amortization of the capital in-
vested in the plant prior to the start of the maximization
procedure.
With its Guidelines of April 1, 2023, the MASE asked Ter-
na to continue the maximization plan until September 30,
2023. Terna confirmed the inclusion of Enel plants and
defined a production maximization plan for the May 15 -
September 30, 2023 period.
With its Resolution no. 258/2023/R/eel ARERA approved
Enel Produzione’s petition to review the criteria for deter-
mining the variable cost recognized that is applicable to
the plants of Brindisi Sud, Fusina and Torrevaldaliga Nord.
The updated parameters after the issue of the resolution
will be used in the determination of income items for the
entire period covered by the maximization plan, that is
from September 19, 2022 until completion of the plan, on
September 30, 2023.
Capacity remuneration mechanism
On June 28, 2019, the Minister for Economic Development
issued a decree approving the definitive rules governing
the capacity remuneration mechanism (the capacity mar-
ket). On November 6 and November 28, 2019 two auctions
were held with delivery in 2022 and 2023 respectively: Enel
was awarded capacity for both years. A number of opera-
tors and a sectoral trade association contested the decree
and the results of the two auctions before the Lombardy
Regional Administrative Court.
Two operators also challenged the European Commission
decision approving the Italian mechanism before the EU
Court. In two decisions dated 7 September 2022, the Eu-
ropean General Court dismissed the actions and the two
applicant companies decided to not appeal the decisions
before the Court of Justice of the European Union, thereby
concluding the disputes.
The disputes are, however, still pending before the Lom-
bardy Regional Administrative Court, which had suspend-
ed its proceedings in April 2021 pending the rulings of the
EU Court, having identified an issue for which a preliminary
ruling was called for with respect to these proceedings.
With the Decree of the MiTE of October 28, 2021, the new
capacity market regulation was approved. It will apply to
auctions with delivery from 2024. In execution of the de-
cree, Terna launched the auction procedures for 2024,
which took place on February 21, 2022. Enel was award-
ed annual contracts for approximately 10.4 GW of existing
capacity with delivery in 2024, and contracts for approxi-
mately 1.5 GW of new capacity with a duration of 15 years
from 2024 to 2038. Pursuant to the decree, the results
of the 2024 auction will be used as the basis for assess-
ing whether to hold an auction for the 2025 delivery year.
In December 2021, two operators filed two appeals with
the Lombardy Regional Administrative Court against the
MiTE Ministerial Decree of 28 October 2021, Terna’s 2021
244 Integrated Annual Report 2023
Capacity Market Regulations and the ARERA resolutions
which define the framework for the execution of the ca-
pacity auction for 2024. In May 2022, the same companies
also challenged the detailed report of the results of the
main auction for 2024, published by Terna.
In March 2022, ARERA issued Resolution no. 83/2022/R/
eel with urgent measures to change the methods of cal-
culating the strike price of the capacity market, introduc-
ing a mechanism for indexing on a daily basis the com-
ponents relating to the cost of gas and the issue charges
included in the calculation of the strike price, in order to
cope with the increased volatility of the natural gas spot
market since 2022. The new methodology replaced the
previous formulas, which provided for an indexation of the
strike price on a monthly basis, and was confirmed by AR-
ERA with Resolution no. 583/2023/R/eel for 2024. With a
notice of September 18, 2023, Terna published the new
version of the technical provisions for the functioning of
the capacity market valid for 2023 and 2024, which es-
tablish a new method for verifying the energy availability
requirements for the storage facilities participating in the
capacity market on the basis of which these systems are
remunerated.
On December 20, 2023 Terna announced the start of the
consultation on the updating of the capacity market regu-
lations containing the new rules for the award of contracts
through new auctions from 2025.
Renewable energy communities
At the end of November 2021, Legislative Decree 199/2021
implementing Directive 2018/2001 on the promotion of
the use of energy from renewable sources was published in
the Gazzetta Ufficiale. The decree also contains provisions
on self-consumption arrangements and renewable ener-
gy communities, which are already governed in Italy by the
experimental regulations introduced with Law 8/2020 (rat-
ifying Decree Law 162/2019, the “Milleproroghe” omnibus
extension act) and subsequent implementation measures
(ARERA Resolution no. 318/2020/R/eel and Ministerial De-
cree of September 16, 2020 of the Ministry for Economic
Development).
In December 2022, in implementation of Legislative De-
cree 199/2021, ARERA approved the Consolidated Dis-
tributed Self-Consumption Code (TIAD) which sets out
the new regulatory framework for energy communities
and self-consumption arrangements. In November 2023,
the European Commission approved the draft decree pro-
posed by the MASE, which defines new incentive mecha-
nisms for these communities and arrangements. Follow-
ing approval by the European Commission, on January 23,
2024 the MASE published the new decree, with full imple-
mentation commencing on January 24, 2024. The Decree
of September 16, 2020 will be repealed starting from the
sixtieth day following the date of adoption of the opera-
tional rules, which will be determined by the ESO (Energy
Services Operator).
Iberia
Royal Decree Law 6/2022 of March 29
adopting urgent measures as part of the Plan
for the National Response to the economic
and social consequences of the war in Ukraine,
Royal Decree Law 11/2022 of June 25 adopting
and extending certain measures to respond to
the economic and social consequences of the
war in Ukraine, address situations of social and
economic vulnerability and the economic and
social recovery of the island of La Palma
On March 30, 2022, Royal Decree Law 6/2022 of March 29
was published in Spain’s Official Journal, approving certain
measures as part of the Plan for the National Response to
the consequences of the war in Ukraine. The legislation
contains various measures for the energy sector, some of
which were extended until December 31, 2022 with Royal
Decree Law 11/2022 of June 25 and until December 31,
2023 with Royal Decree Law 18/2022 of October 18 and
Royal Decree Law 20/2022 of December 27. Some of the
most significant measures were the following:
• extension until December 31, 2022 of the payment ob-
ligation that Royal Decree Law 17/2021 of September
14 established for non-emitting generation plants in
proportion to the presumed higher revenue that those
plants would have earned following the incorporation
into wholesale electricity prices of the value of the price
of natural gas. Power hedged with fixed-price forward
contracts before March 31, 2022 will be exempt from
the application of the mechanism. Hedging instru-
ments with a duration equal to or greater than one year
and a fixed price after March 31, 2022 will be excluded
if the fixed price is equal to or less than €67/MWh. In
the case of bilateral contracts between generators and
retailers in the same business group, the hedge price
will be the price that sellers pass on to final consumers
and, in this case, the exempt fixed price will be deter-
mined by increasing the value by €67/MWh in the aver-
age marketing margin of the sector;
• the reduction in the remuneration of generation from
intramarginal plants was subsequently not extended,
meaning the mechanism expired on December 31,
2023. Exceptionally, within two months of the entry
into force of the royal decree law, a ministerial order
will update the remuneration parameters for renew-
able sources, cogeneration and waste plants, taking
account of forward prices for the 2nd Half of 2021 for
market prices and carbon dioxide (CO2). Furthermore,
starting from 2023 inclusive, the adjustment mecha-
Regulatory and rate issues
245
nism for deviations from the market price is eliminat-
ed, in order to encourage the forward sale of energy
by these plants. However, Royal Decree Law 10/2022
of May 13 restored the adjustment mechanism for de-
viations from the market price, incorporating forward
benchmarks in relation to the expected price;
• specific, simplified procedures have been established to
promote the streamlining of the authorization process
for new renewable plants or plants under construction,
for wind projects up to 75 MW and photovoltaic plants
up to 150 MW, with connection lines of less than 15 kW;
• as regards the access auctions, for two years from the
publication of the royal decree law, in the nodes where
the capacity tenders were held, 10% of the available re-
served capacity will be released for renewable plants
(linked to transmission or distribution) for self-con-
sumption;
• exceptionally, for the 2023-2025 period, electricity dis-
tributors must specifically include in their investment
plans specified actions to increase the capacity of their
networks to allow the evacuation of electricity from
renewable sources and self-consumption, which must
represent a minimum of 10% of the investment eligible
for the remuneration paid by the system each year, and
must be primarily intended for areas where there is a
lack of access capacity for renewable energy;
• strategic natural gas reserves will be increased from 20
days of consumption to 27.5 days, with greater flexibil-
ity.
Royal Decree Law 10/2022 of May 13
establishing a temporary generation cost
adjustment mechanism to reduce wholesale
electricity prices
On May 14, 2022, Royal Decree Law 10/2022 of May 13 was
published in Spain’s Official Journal. It establishes a tempo-
rary mechanism for adjusting generation costs to reduce
the wholesale price of electricity. The measure establishes
a mechanism for adjusting the generation costs of mar-
ginal fossil fuel technologies, with the aim of obtaining an
equivalent reduction in the clearing price of the wholesale
market until May 31, 2023.
Under this mechanism, the adjustment is based on the
difference between a benchmark price for the gas con-
sumed by thermal generation plants (€40/MWh for six
months, subsequently increasing by €5/MWh per month,
up to €70/MWh) and the spot price of gas on the Span-
ish organized gas market (MIBGAS). This mechanism will
be applicable to combined-cycle, coal and cogeneration
plants not covered by any regulated remuneration frame-
work. The amount of the adjustment will be distributed
among the portion of Iberian demand that directly bene-
fits, either because it buys energy at a price directly relat-
ed to the wholesale market value or because it has signed
or renewed a contract that already takes account of the
beneficial effect of the wholesale pricing mechanism.
With regard to the latter aspect, the storage supply units,
whether batteries or pumping systems, as well as supply
units for auxiliary generation services, are exempt from
payment of the cost of the mechanism.
The entry into force of the mechanism was subject to the
authorization of the European Commission, which was
granted on June 8, 2022, following which the Ministry for
the Ecological Transition and the Demographic Challenge
(MITECO) approved order TED/517/2022 of June 8, which
established June 14, 2022 as the start date for application
of the mechanism (for the June 15 market day). In addition,
this Royal Decree Law includes the following:
• a mandate has been established to introduce a refer-
ence to forward market prices, incorporating a price
component based on a basket of products (annual,
quarterly and monthly) and a daily and intraday market
price component, so that the new voluntary price for
small consumers (PVPC) energy costing formula can
begin to be applied in early 2023. Therefore, the MITE-
CO began hearings on the drafting of a royal decree to
modify the PVPC energy costing formula to incorporate
a forward basket of products in addition to the daily
and intraday market price component. Moreover, the
cost of funding the Bono Social by the operators of the
reference market is incorporated in the PVPC. The draft
royal decree also modifies the scope of application of
the PVPC, which would apply to residential customer
and micro-enterprises with a contractual capacity of
no more than 10 kW. Finally, changes were made to the
rules for non-peninsular territories;
• the regime for the installation of renewable, cogene-
ration and waste facilities has been modified to rein-
troduce the adjustment mechanism for deviations from
the market price and to incorporate a basket of prices
in the price forecast, which will include both the daily
market and forward benchmarks (annual, quarterly and
monthly), with different weights.
Royal Decree Law 17/2022 of September
20 adopting urgent measures in the field of
energy, in application of the remuneration
system for cogeneration plants and
temporarily reducing the Value Added Tax (VAT)
rate applicable to intra-EU delivery, import and
acquisition of certain fuels
On September 21, 2022, Royal Decree Law 17/2022 of
September 20 was published, containing several urgent
measures in the energy field, some of which were sub-
sequently extended by Royal Decree Law 20/2022 of De-
cember 27. The measures adopted were as follows:
• option for cogeneration plants to temporarily waive the
regulated remuneration scheme in favor of the adjust-
ment mechanism for production costs provided under
Royal Decree Law 10/2022 of May 13;
246 Integrated Annual Report 2023
• creation of a new active demand response service
through auctions managed by the system operator;
• greater flexibility in determining network transmission
capacity, and streamlining and simplifying procedures
for renewable energy projects;
• reduction in the VAT rate from 21% to 5% on supplies of
natural gas, pellets, briquettes, and firewood until De-
cember 31, 2023;
• application of the entire surplus for 2021 to cover tem-
porary imbalances and transitory deviations between
revenue and costs in the 2022 financial year.
Royal Decree Law 18/2022 of October
18 which approves measures to reinforce
the protection of energy consumers and
to contribute to reducing natural gas
consumption in application of “Plan +Security
for your energy (+SE)”, as well as measures on
the remuneration of public sector workers
and to protect seasonal agricultural workers
affected by drought
The Royal Decree Law 18/2022 was published on October
19, 2022, and implements some of the measures con-
tained in the “Plan +Security for your energy (+SE)”. The
most significant features are as follows:
• extension of the mechanism to reduce excess elec-
tricity market remuneration caused by high natural gas
prices in the international markets, introduced by Royal
Decree Law 17/2021 of September 14, until December
31, 2023;
• until the ordinance regulating auctions for the supply of
fuel in non-peninsular territories is approved, a new dy-
namic dispatch pricing system, based on monthly cal-
culations, will apply in these territories in order to make
dispatching more efficient and reduce excess costs.
Law 38/2022 of December 27 on the
establishment of temporary energy levies and
taxes on credit institutions and financial credit
establishments by creating the temporary
solidarity tax on large fortunes, and amending
certain tax rules
On August 30, 2022, socialist parliamentary groups and
the parties constituting the government presented a draft
law imposing temporary levies on the energy and banking
sectors.
The law was published in Spain’s Official Journal on De-
cember 28, 2022, after being approved by the Spanish
Parliament.
The main features of the energy levy under this law are as
follows:
• in 2023 and 2024, a temporary levy of 1.2% will be im-
posed on the net turnover derived from activity carried
out in Spain in the previous calendar year, with the pay-
ment obligation arising as of the first day of the calen-
dar year;
• the net turnover amount does not include revenue re-
lating to the tax on hydrocarbons, the Canary Islands
special tax on petroleum-derived fuels and the addi-
tional charges on fuels and petroleum products in Ceu-
ta and Melilla, which have been paid or incurred as an
input tax. It will also exclude turnover relating to regu-
lated activities, meaning the supply at regulated prices
(PVPC for electricity, the last resort rate (TUR) for gas,
bottled LPG and piped LPG), the regulated revenue
of electricity and natural gas transmission and distri-
bution networks and, in the case of generation with
regulated remuneration and additional remuneration
in non-mainland areas, all plant revenue, including any
received from the market and from dispatch services;
• the levy will apply to persons or entities considered
main operators in the energy sectors, with an annual
net turnover in 2019 of more than €1,000 million, or
whose net turnover in 2017, 2018 and 2019 from their
qualifying activities exceeded 50% of total net turnover
for that year. It also establishes that main operators will
include any individuals or entities who carry out in Spain
activities relating to the production of crude oil or nat-
ural gas, coal mining or oil refining, and who generate,
in the year preceding that in which the levy payment
obligation arises, at least 75% of their turnover from
economic activities relating to mining, oil refining or the
manufacture of coke products;
• the net turnover for companies that are part of a tax
group that is taxed on a consolidated basis is calculated
based on the entire group;
• the tax is legally classified as non-tax levies of a public
nature which are not deductible for corporate income
tax purposes, nor can they be passed on to customers/
third parties.
Royal Decree Law 20/2022 of December 27
on measures to respond to the economic and
social consequences of the war in Ukraine and
to support the reconstruction of the island of
La Palma and other situations of vulnerability
On December 28, 2022, Royal Decree Law 20/2022 of De-
cember 27 was published, with the following most signif-
icant aspects:
• the scope of application of the exceptions intro-
duced by Royal Decree Law 10/2022 of May 13 includes
waste-to-energy plants authorized prior to 2013 with a
power capacity of between 50 MW and 100 MW, which
allows them to temporarily waive inclusion in the spe-
cific regulated remuneration scheme as is currently al-
lowed for cogeneration plants;
• in order to prevent speculative maneuvers in the re-
newable energy sector and to avoid overwhelming the
administrative process, some procedures for which ap-
plications have been submitted will be suspended for a
Regulatory and rate issues
247
period of 18 months with regard to nodes reserved for
capacity tenders;
• progress has been made in simplifying and speeding
up the procedures for processing authorizations for re-
newable energy plants;
• in the area of self-consumption, the distance for a
photovoltaic system used for self-consumption to be
considered in close proximity to the grid has been in-
creased from 1,000 to 2,000 meters, and they may be
located, in addition to on rooftops, on industrial land or
on structures whose primary purpose is not the gener-
ation of electricity;
• with regard to electricity transmission, by March 31,
2023 the government will start to modify the develop-
ment plans for the transmission grid to include priority
measures to promote the energy transition and that
make it possible to develop the industrial value chain.
On an exceptional basis, these measures may be par-
tially funded by the Recovery, Transformation and Resil-
iency Plan and are not subject to the investment limits
for transmission companies;
• aid will be available to gas-intensive companies to off-
set the increase in natural gas prices;
• finally, a number of measures enacted to make natural
gas supply contracts more flexible were extended until
December 31, 2023.
Royal Decree Law 3/2023 of March 28,
extending the generation cost adjustment
mechanism to reduce wholesale electricity
prices established by Royal Decree Law
10/2022 of May 13
On March 29, 2023 Royal Decree Law 3/2023 of March
28 was published in Spain’s Official Journal which, among
other things, extends for seven months until December
31, 2023, the so-called “Iberian derogation” mechanism
established by Royal Decree Law 10/2022 of May 13. The
royal decree law modifies and completes, until the end of
2023, the evolution of the benchmark price for natural gas
for the purpose of activating the mechanism, ranging be-
tween €45/MWh in January 2023to €65/MWh in Decem-
ber 2023.
The mechanism was not extended and expired on Decem-
ber 31, 2023.
Royal Decree Law 5/2023 of June 28, adopting
and extending certain measures to respond
to the economic and social consequences
of the war in Ukraine and to support the
reconstruction of the island of La Palma and
other situations of vulnerability
On June 29, 2023, Royal Decree Law 5/2023 of June 28 was
published in Spain’s Official Journal. Among other things,
it includes a new package of measures to respond to
the economic and social impact of the war in Ukraine on
Spain, also with the extension of measures already adopt-
ed in the past. Its main features concerning energy are as
follows:
• the deadline for renewable projects with access per-
mits from January 1, 2018 in the process of obtaining
administrative authorization for construction has been
extended by six months. In any case, the five-year term
from the start of work for commissioning has been re-
tained;
• the price references for electricity and fuels to be used
for calculating the remuneration for the operation of
renewable energy, cogeneration and waste plants have
been modified to use values more in line with current
market levels. Order TED/741/2023 of June 30 updates
remuneration parameters for 2023-2025, incorporat-
ing among other things the provisions of Royal Decree
Law 5/2023 of June 28;
• in line with European legislation, energy communities
formed of members of the public are introduced as
a new figure in the sector. Among other rights, such
communities may own distribution networks and act
as consumer representatives to engage in collective
self-consumption activities;
• all charging stations with a capacity exceeding 3 MW are
declared to be public utility, with corresponding authori-
zation from the Ministry for the Ecological Transition and
the Demographic Challenge. Accordingly, plants with an
output of less than 3 MW are exempt from the require-
ment to obtain administrative authorization.
Royal Decree Law 8/2023 of December 27,
adopting certain measures to respond to the
economic and social consequences of the war
in Ukraine and the Middle East and to alleviate
the impact of drought
On December 28, 2023, Royal Decree Law 8/2023 of De-
cember 27 was published in Spain’s Official Journal. It ex-
tends the energy protection measures implemented in re-
sponse to the war in Ukraine, promotes renewable energy
and contains measures to reduce the impact of drought.
The key aspects concerning energy are as follows:
• VAT: VAT on electricity increases from 5% to 10%
throughout 2024 (provided that the average daily mar-
ket price of the previous month is above €45/MWh). For
natural gas, VAT rises from 5% to 10% until March 31,
2024;
• value of production tax (7%): 3.5% will be applied in the
1st Quarter of 2024, 5.25% in the 2nd Quarter of 2024
and 7% thereafter. The electricity system will be com-
pensated for the decline in receipts within the limit of
the amount necessary to achieve balance between rev-
enue and expenditure in respect of those charges;
• excise tax on electricity: this will rise from 0.5% to 2.5%
in the 1st Quarter of 2020 and to 3.8% by the 2nd Quar-
ter of 2020, before increasing to 5% thereafter;
248 Integrated Annual Report 2023
• energy tax (1.2%): this has been extended until 2024,
without prejudice to the establishment in the 2024
State Budget of an incentive for strategic investments
essential for the ecological transition (energy storage,
new renewable fuels such as biogas, biomethane or
green hydrogen);
• renewables, self-consumption and storage: the dead-
line for developing new renewables projects is volun-
tarily extended to eight years. It is possible to incorpo-
rate qualitative criteria into renewables auctions that
recognize the social and environmental added value of
European industry;
• self-consumption: to ensure the clearance of surplus-
es by self-consumption plants, a reserve of 10% of the
capacity of all nodes of the electricity transmission net-
work has been reserved for access tenders;
• network capacity: to avoid the hoarding of network
access permits for large-scale consumption, two mea-
sures have been introduced:
– guarantees for large-scale consumption projects
that connect to ≥36 kV grids equal to €40/kW and
€20/kW for storage in demand mode, in addition to
the €40/kW required in generation mode.
The guarantees also apply to permits already grant-
ed, which have six months to present the guarantees
to the competent body and another six months to
send the accreditation receipt to the grid operator;
– automatic forfeiture of access and connection per-
mits, with connection point in a ≥36 kV grid, if within
5 years of obtaining those permits an access con-
tract is not signed for a contractual capacity in the
P1 period equal to at least 50% of the access capac-
ity granted in the permit;
• demand tenders: the Ministry for the Ecological Tran-
sition and the Demographic Challenge may organize
demand tenders on transmission grid nodes where the
total volume of new applications for demand access
capacity is so great that it is impossible to satisfy them
all;
• hydroelectric storage: storage is included among the
uses of water, ranking third in the established order of
preference after the supply of civil use populations and
agricultural use and ahead of electricity generation and
other industrial uses. Pumping concessions are adapt-
ed to be considered hydraulic energy storage facilities
and their repowering is encouraged.
Renewable energy auctions
Based on the provisions of Order TED/1161/2020 of De-
cember 4, which sets out the rules for the first auction
held under the economic regime for renewable energy
and sets the indicative timetable for 2020-2025, the Res-
olution of July 18, 2022, published on July 28, 2022, an-
nounced the third auction under the economic regime for
renewable energy. A total of 380 MW was allocated for the
auction, which was held on October 25, 2022. Similarly,
the Resolution of August 2, 2022, published on August 5,
2022, announced a fourth auction, with 3,300 MW allocat-
ed for award, which was held on November 22, 2022.
Furthermore, in 2022 various ministerial orders where ap-
proved, updating the remuneration of some of the com-
pensation parameters of the structures, and work has be-
gun on updating the parameters for the 6-month regula-
tory period beginning in 2023.
Tenders for access capacity at certain nodes
of the transmission grid
On June 10, 2022, the Ministry for the Ecological Transition
and the Demographic Challenge began preparation of a
proposal for an Order for a tender for the access capac-
ity at certain nodes of the transmission network, in com-
pliance with the provisions of Royal Decree 1183/2020 of
December 29 concerning access and connection to the
electricity transmission and distribution grids, for a total
capacity of 5,844 MW.
In addition, on August 9, 2022, the Resolution of the Sec-
retary of State for Energy of August 3, 2022 was published,
containing the decision to hold another tender for access
capacity at certain nodes of the transmission grid.
Fuel Order for non-peninsular territories
On December 30, 2022, Order TED/1315/2022 was pub-
lished, implementing Decision 1337/2021 of November 16,
2021 of the Spanish Supreme Court, concerning the need
to regulate auctions for the supply of fuel in the non-pen-
insular territories and other technical issues.
The Order sets out the procedure for conducting fuel
auctions, which will be held every two years and will be for
the product used in the plant (or the raw material in the
case of gas from the Balearic Islands). The auctions will be
reverse auctions based on starting prices obtained by in-
creasing the benchmark prices by 10% (3% in the case of
natural gas), which will be those applied until the auctions
are held or the auctions do not take place or are canceled.
As from January 27, 2022, the benchmark price for natu-
ral gas will be the price on the Iberian Gas Market (MIB-
GAS), while for other fuels it is determined on the basis of
a number of international indices, to which a premium is
added, where appropriate. The Order also grants the lo-
gistics costs of delivering the product to the plant, which
can be revised every three years.
In addition, the Order also provides for the use of natural
gas in the Canary Islands and in Melilla, as well as LPG in
the Canary Islands, together with other less polluting fuels.
Following the publication of Order TED/1315/2022, on
February 3, 2023 the resolution of January 24, 2023 of the
Directorate General for Energy Policy and Mining was pub-
lished. It establishes product prices and special taxes ap-
plicable to coal, fuel oil and diesel for the 2nd Half of 2021,
to be applied in the settlement of this period for gener-
Regulatory and rate issues
249
ation units located in non-continental territories. Conse-
quently, the fuel prices were determined by applying the
references referred to in the third transitional provision of
Royal Decree 738/2015 of July 31, as the aforementioned
Directorate General is aware of the fact that Decision
1337/2021 of November 16 of the Spanish Supreme Court
was declared contrary to the law and is not applicable to
the determination of fuel prices.
Proposal for a resolution of the tender
procedure for new investment and extension
of the useful lives of existing units in non-
peninsular territories
In implementation of Royal Decree 738/2015 of July 31, the
Ministry for the Ecological Transition and the Demograph-
ic Challenge in January began hearings on the proposed
resolution of the Secretariat of State for Energy calling the
competitive procedure for the granting of favorable com-
patibility resolutions for the purposes of payment of the
additional remuneration regime. The purpose of the pro-
cedure is to grant compatibility resolutions, among other
things, for actions that enable coverage of additional elec-
tricity demand emerging from the coverage analyses con-
ducted by the System Operator. On November 6, 2023 a
new version of this proposed resolution was again opened
to the public. It updates the power requirements with the
latest information provided by the System Operator and
introduces other elements, such as new criteria and scales
for evaluating the applications submitted.
Regulatory amendments in non-peninsular
territories
Royal Decree 446/2023 of June 13 amending the calcula-
tion method for determining the voluntary price for small
consumers (PVPC), modified certain regulatory aspects of
generation in non-peninsular territories, including:
• elimination of the adjustment factor for fuel bills effec-
tive as of January 1, 2023;
• introduction of a correlation factor in the calculation of
carbon dioxide (CO2) emissions allowances effective as
of July 1, 2023 to consider actual emissions of plants;
• in view of the financial impact of the extraordinary mea-
sures taken to ensure security of supply, it grants com-
pensation for the financial cost of the lag between the
completion of settlement of regulated electricity sec-
tor activities for the year in which the measures are ap-
proved and the date of approval of the final settlement
for that year, based on the one-year Euribor rate plus
50 basis points.
Approval of final generation costs for
generation units in non-peninsular territories
In July 2023, the resolutions approving the definitive gen-
eration costs in non-peninsular territories for 2018 and
2019 were published, while in September the work of
drafting an equivalent proposed resolution for 2020 was
begun.
Rest of the World
Latin America
Chile
Rate revision – Introduction of temporary electricity
price stabilization mechanisms
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 regulated cus-
tomers” (PEC).
Between January 1, 2021 and the expiry of this mechanism,
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 applying
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 various electricity
distribution companies will be accounted for as receiv-
ables for invoices to be issued to generation companies
up to a maximum of $1,350 million until 2023. These dif-
ferences will be recognized in US dollars and will not ac-
crue interest until the end of 2025. Any imbalances in favor
of the generation companies must be recovered no later
than December 31, 2027. It should be noted that the fund
limit was reached in January 2022.
On August 2, 2022, the Ministry of Energy published Law
21.472, which establishes a rate stabilization fund and a
new mechanism for the temporary stabilization of elec-
tricity prices for customers subject to rate regulation. This
law establishes a Transitional Customer Protection Mech-
anism (TCPM) which will stabilize energy prices, comple-
menting that provided for by Law no. 21.185, for custom-
ers subject to regulation of prices supplied by concession
holders of the public distribution service governed by the
General Law of Electricity Services. The purpose of the
TCPM will be to pay the differences that occur between
the invoicing of distribution companies to end customers
for the energy and power component, and the amount
that corresponds to the payment of the supply of elec-
tricity to generation companies. The resources appropri-
ated for the operation of the TCPM cannot exceed $1,800
250 Integrated Annual Report 2023
million and their availability will be extended until the bal-
ances originating from the application of the law are ex-
tinguished. Starting from 2023, the National Energy Com-
mission must project the total payment of the residual final
account every six months for a date that cannot be later
than December 31, 2032.
Enel Green Power
Italy
The Ministerial Decree of July 4, 2019 provided for com-
petitive procedures based on Dutch auctions and regis-
ters, depending on the installed capacity and by technol-
ogy groups, including photovoltaic systems. In particular,
expected procedures are:
• 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 renewable
sources through two-way contracts for differences under
which the successful tenderer returns any positive differ-
ences between the zonal price and the auction price. The
successful tenderer for renewables capacity will benefit
from the incentive mechanism for the entire useful life of
the plant (20, 25 or 30 years, according to the technology).
On November 30, 2021, Legislative Decree 199 of Novem-
ber 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 pro-
cedures in 2022, until the publication of the new auction
schedule for the next five years. Pending the new planning,
an additional three auctions were called in 2023.
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 capacity
greater than 10 MW, which will be able to use the mech-
anism even though they have not completed the authori-
zation process.
Plants with a capacity of less than 1 MW, on the other hand,
will have direct access to incentives, with the exception of
innovative technology plants, which will be able to access
the subsidies through specific tenders.
The incentive mechanisms are being updated by the Min-
istry of the Environment and Energy Security (MASE) with
a specific implementing decree.
The clawback mechanism
Decree Law 4 of January 27, 2022 (the Third Support De-
cree), ratified with Law 25 of March 28, 2022, introduced,
for the period February 2022 - December 2022 a two-
way refund mechanism for plants powered by renewable
sources receiving incentives through the energy account
and for all plants powered by renewable sources that are
not receiving incentives and that entered service by Janu-
ary 2010. Producers must return the difference between
the market price, or the contracted price for forward sales,
and a reference price identified in the same decree for
each market zone (an average of €60/MWh). Decree Law
115 of August 9, 2022 (the Second Aid Decree), ratified
with Law 142 of September 21, 2022, introduced a number
of amendments to the Third Support Decree by extend-
ing the period of application of the clawback mechanism
until June 2023, specifying that, for vertically integrated
groups, only contracts signed by group companies (in-
cluding non-generators) with other natural or legal per-
sons outside the group are eligible. The implementation
procedures for this mechanism were specified by ARERA
with Resolution no. 266/2022/R/eel (for the period Febru-
ary 1, 2022 - December 31, 2022) and with Resolution no.
143/2023/R/eel (for the period January 1, 2023 - June 30,
2023).
Finally, the 2023 Budget Act (Law 197 of December 29,
2022), transposing Regulation (EU) 1854/2022, extended
the reimbursement scheme to plants not covered by De-
cree Law 4 of January 27, 2022, establishing a cap of €180/
MWh.
ARERA Resolution no. 266/2022/R/eel, together with oth-
er technical standards with which the Energy Services Op-
erator (ESO) required the generators concerned to repay
the amounts due, was the subject of an appeal before the
Lombardy Administrative Regional Court (TAR). The TAR
granted the appeals filed by several operators, voiding
the resolution and the consequential measures. ARERA
lodged a precautionary appeal of the voidance ruling be-
fore the Council of State, which met on March 21, 2023. On
March 22, 2023, with precautionary orders no. 1124/2023,
1126/2023 and 1127/2023, the Council of State granted
the precautionary petition filed by ARERA, setting a hear-
ing for discussion on December 2023, which was subse-
quently postponed to another date to be determined.
At the same time, another operator appealed ARERA
Resolution no. 266/2022/R/eel as well as the second res-
olution no.143/2023/R/eel. As part of this judgment, the
Lombardy TAR referred the assessment of the compliance
of the mechanism envisaged in the Third Support Decree
with respect the EU regulatory framework to the Court of
Justice of the European Union, suspending the proceed-
ing until the Court’s decision.
Regulatory and rate issues
251
Iberia
Renewable energy
As in the rest of Europe, Spain in the 1st Half of 2023 was
also involved in the consultation by the European Commis-
sion on the Electricity Market Design, which should lead to
the adoption of a proposal by Brussels by next March.
One of the most important issues facing Spain in 2023 with
regard to the development of new renewable generation
capacity is compliance with the milestones that Royal De-
cree 23/2020 establishes to maintain access and connec-
tion permits to the grid. The deadline for certifying the En-
vironmental Impact Statement and the prior administrative
authorization expired in the 1st Half of 2023. Nationwide,
more than 50 GW of power from wind and solar projects
successfully achieved these two milestones.
In the case of Enel Green Power-Endesa, most of the power
in the pipeline also achieved these requirements (more than
4 GW).
As in 2022, the achievement of these goals monopolizes a
considerable portion of the activity of the central adminis-
tration, of the Autonomous Communities and, obviously, of
the promoters of renewable generation.
At the end of 2022, the Spanish government published a
resolution for the grant of aid, under competitive tendering,
for the repowering of wind farms, as well as aid for the de-
velopment of recycling facilities for decommissioned wind
turbine components. Enel Green Power-Endesa has sub-
mitted applications for a grant of aid both for the repower-
ing of wind farms and, together with its partners, for the
recycling of wind turbine blades. In November 2023 the de-
finitive allocation of aid for the repowering of wind projects
with the funds of the Recovery, Transformation and Resil-
ience Plan was published. Enel Green Power was awarded
€17.6 million contributing to the repowering of six projects
for a total of 100.3 MW.
At the end of 2022, the Spanish government also published
a call for tenders for hybrid storage projects. In case of
award, applicants receive a grant to finance investment in
and development of the projects. Enel Green Power-Ende-
sa submitted various projects and obtained grants in the
amount of €9.2 million in December 2023.
On December 28, 2023, the Royal Decree Law 8/2023 was
published. It includes various measures related to renew-
able generation. It does not extend the reduction in gener-
ation remuneration governed by Royal Decree Law 17/2021,
due to an excess price of €67/MWh. The measure expired
therefore on December 31, 2023. The period of application
of the “Iberian derogation”, governed by Royal Decree Law
10/2022, was also not extended and therefore expired on
December 31, 2023.
For generation projects with access and connection per-
mits after December 31, 2017 and before this Royal Decree
Law, the deadline for accreditation of the administrative
construction permit has been moved from January 25, 2024
to July 25, 2024. Additionally, for those projects, an exten-
sion of the terms may be requested to obtain the definitive
exploitation permit within a period of three months, up to a
maximum of eight years (until July 25, 2028) indicating the
half-year of commissioning. This enables the better orga-
nization of projects to be carried out between 2024 and
2028.
Furthermore, the royal decree provides for measures to
progressively restore the energy taxation in force before the
start of the energy crisis resulting from the war in Ukraine.
Rest of the World
North America
United States
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 subsidiar-
ies, since they have been accused of exploiting their work-
force. The WRO restricts the import into the United States
of polysilicon products made by Hoshine Silicon Industry
Co. Ltd.
The effect on the US solar industry was the halting of ship-
ments of photovoltaic modules by US customs, resulting in
a delay in the delivery of solar equipment to end users, in-
cluding Enel.
All photovoltaic equipment manufacturers had to produce
clear documentation of their supply chain to meet US cus-
toms 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 con-
trols, reviewing its supply chain and monitoring the imple-
mentation of the WRO by customs officials.
In a separate but connected development, in December
2021, President Biden signed the Uyghur Forced Labor Pre-
vention Act (UFLPA). UFLPA requires US customs authorities
to apply a presumption that goods “mined, produced, or
manufactured in whole or in part” in the Xinjiang Uyghur Au-
tonomous Region are made with forced labor and, therefore,
are prohibited from being imported into the United States.
252 Integrated Annual Report 2023
Goods covered by this presumption shall not be allowed to
enter unless the importer proves that:
• it has fully complied with government guidelines and
regulations;
• it has responded fully and substantially to all US cus-
toms inquiries; and
• it is 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 adminis-
trative regulation process under way since February 2022,
which is expected to be completed by June 2022.
A key element of the UFLPA came into force on June 21,
2022: rebuttable presumption. From now on, any import
of goods mined, produced or manufactured in whole or
in part in the Xinjiang Uygur Autonomous Region (XUAR),
or from entities identified in a new UFLPA entity list, will
be assumed to have been made with forced labor and will
be barred from entering the United States. To prevent US
customs from blocking the delivery of goods, importers
will need to demonstrate whether the goods to be im-
ported (or their components) were extracted, produced or
manufactured in the XUAR and/or whether the goods to
be imported were purchased from a supplier identified in
the UFLPA entity list.
UFLPA compliance by importers should ensure compli-
ance with the current Withhold Release Order (WRO),
which blocks the import of any solar equipment containing
metallurgical grade silicon manufactured by Hoshine.
The private nature of the blockade imposed by US cus-
toms makes it difficult to monitor the application of the
UFLPA.
Importers with solar module products using Chi-
nese-sourced polysilicon continue to be detained due to
difficulties in providing complete traceability documenta-
tion. In December 2023, US customs apparently released
detained products that used Chinese polysilicon not
sourced from Xinjiang.
Separately, ROTH Capitol reported that Astroenergy also
obtained US customs clearance for products made from
Chinese polysilicon (Ordos and Asia Silicon) that “appear”
to be made from Chinese quartz and MGS.
US duties on imported solar equipment
In February 2022, the Biden administration announced its
decision to extend the duties applicable to imported solar
panels. The decision extends the collection of duties for
another four years, while adopting a very marginal annual
tariff reduction: the duty on imported solar panels will de-
cline by 0.25% each year. It is important to note that the
Biden administration’s decision also confirms the tariff
exemption for bifacial solar modules, which are the main
type of solar panels used by Enel for its utility-scale proj-
ects in the United States. The Biden administration is cur-
rently carrying out an intermediate review of the duty. A
final report is due to be sent to the President during 2024,
after which the President could make changes to the duty
or leave the corrective measures as they are.
Also in February 2022, California-based PV manufactur-
er Auxin Solar filed a petition for a circumvention enquiry
with the US Department of Commerce (DOC), asking the
DOC to launch an investigation into whether crystalline sil-
icon PV cells and modules (CSPV) from Vietnam, Malaysia,
Thailand and Cambodia were “circumventing” anti-dump-
ing and countervailing duties. The DOC then launched an
investigation and in August 2023 the DOC officially ended
the “Auxin” circumvention investigation, concluding that
the AD/CVD applicable to Chinese solar cells and modules
will be extended to cells and modules from Cambodia, Ma-
laysia, Thailand and Vietnam.
President Biden issued an emergency declaration on June
6, 2022, giving the DOC the authority to waive the collec-
tion of AD/CVD duties and, above all, deposits for duties on
CSPV cells and modules exported from Vietnam, Malaysia,
Thailand and Cambodia for 24 months, starting from the
date of the announcement. The DOC is making use of this
new authority and has issued regulations to implement
the 24-month emergency declaration, protecting affected
imports from Auxin-related duties until June 2024.
The US Department of Commerce (DOC) also clarified that
imports of solar cells and modules form Cambodia, Malay-
sia, Thailand and Vietnam will not be subject to suspension
of settlement or cash deposit requirements if accompa-
nied by a certification that they are not circumventing AD/
CVD orders.
US duties on imported Chinese products
In 2018, the United States Trade Representative (USTR)
conducted a Section 301 investigation and found that
China’s acts, policies and practices related to technology
transfer, intellectual property and innovation were unrea-
sonable and discriminatory.
As a result, it published five lists (List 1, 2, 3, 4A and 4B),
each of which identifies different Chinese products sub-
ject to different duties. To Enel, the list of greatest interest
is that including Chinese components used for wind and
solar projects and batteries.
In September 2022, the USTR announced that it was seek-
ing public comments regarding the effectiveness of the
Section 301 duties in order to understand the effects of
these on the economy and on US consumers in order to
Regulatory and rate issues
253
identify any other actions that could be taken.
The clean energy industry has called on the Biden admin-
istration to leave tariffs for batteries (7.5%) and battery cells
(25%) unchanged; or to lower the tariff for battery cells to
7.5%, eliminating the problem of tariff inversion.
Federal loans and incentives for clean energy in the
United States
In November 2021, President Biden signed the $1 trillion
Infrastructure Investment and Jobs Act (IIJA), also known as
the bipartisan infrastructure law, unlocking funds for new
spending on roads, bridges, aqueducts, broadband. The
new law also contains provisions to boost the expansion
of the country’s electricity grid and support existing and
new clean energy technologies. It also contains provisions
to support existing nuclear power plants and hydroelectric
plants, clean up orphaned wells and abandoned mining
lands and facilitate access to critical minerals needed for
clean energy production. Of potential interest to Enel, the
following programs were announced:
• clean hydrogen: the Department of Energy (DOE) has
received $7 billion to develop between 6 and 10 “Clean
Hydrogen Hubs” in the United States. Each hub will
consist of a network of clean hydrogen producers, po-
tential consumers and connecting infrastructure locat-
ed in close proximity. The DOE received applications,
which had to be completed and sent by April 2023, and
selected seven regional programs in October 2023. Ne-
gotiations to finalize proposals are under way;
• the National Electric Vehicle Infrastructure Formula
Program (NEVI) has made $5 billion in funding available
over five years and distributed across all 50 states. The
plan aims to promote the development of battery-pow-
ered cars, ensuring that motorists always have some-
where to charge their vehicles. The funding covers the
cost of EV charging stations and the related infrastruc-
ture (including solar power and storage systems), as
well as operation and maintenance costs for five years;
• electric vehicle charging infrastructure: the US Depart-
ment of Energy (DOE) and the US Department of Trans-
portation (DOT), acting through the Federal Highway
Administration, have presented a plan to create a net-
work of public electric vehicle chargers along interstate
highways worth $5 billion. The money will be distribut-
ed over five years across all 50 states. The plan aims to
promote the development of battery-powered cars, en-
suring that motorists always have somewhere to charge
their vehicles. Separately, the DOT, acting through the
Federal Transit Administration, has announced a plan to
distribute $5.3 billion in grants to state and local transit
agencies for the “Low or No Emission Vehicle Program”.
The “Low or No Emission Vehicle Program” supports
transport agencies in purchasing or leasing low or no
emission buses and other transport vehicles that use
technologies such as electric batteries;
• strengthening the power grid and expanding transmis-
sion: this program of $2.5 billion in government subsi-
dies over five years was introduced to strategically dis-
tribute publicly available EV charging infrastructure and
other infrastructure to be located along alternative fuel
corridors. At least 50% of this funding must be used
for projects that expand access to EV recharging and
alternative fuel infrastructures in rural areas, low- and
moderate-income sections and communities with little
private parking;
• electric school buses: $5 billion over five years has been
allocated to replace existing diesel-powered school bus-
es with clean, zero-emission buses. Half of the funding
will be spent on electric zero-emission buses, while the
other half will be used on zero-emission buses pow-
ered with alternative fuels. Grants can cover up to 100%
of the costs of replacing existing schools and installing
charging and refueling stations. The IIJA will replace over
1,000 transport vehicles, including buses, with clean
electric vehicles, thanks to an additional appropriation
for the US DOT of $5.75 billion over the next five years,
5% of which will be dedicated to training the transporta-
tion labor force on maintaining and managing the fleets.
Inflation Reduction Act of 2022
On August 16, 2022, President Biden signed the Inflation
Reduction Act (IRA), which sets aside about $415 billion
over the next 10 years in the form of grants, tax credits and
investments to support new clean energy technologies
projects, renewable energy generation, the electrification
of transport systems and climate-smart agriculture. It is
expected that the measures will reduce carbon emissions
by almost 40% in the United States by 2030 and will raise
US GDP by 0.2% in 2031. The funding will be distributed as
follows:
• energy (to extend, and in some cases increase, tax
credits; $263 billion);
• climate (to accelerate the reduction in emissions and
support low-income communities; $48 billion);
• generation (to encourage the domestic production of
solar panels, wind turbines and batteries; $48 billion);
• environment (to create environmental quality incen-
tives; $27 billion);
• transportation (through offering tax credits to consum-
ers; $24 billion);
• water (through a drought-relief program; $5 billion).
The US Department of Treasury is currently working on the
guidance needed for a new set of tax credits. The various
tax credits will be phased down starting the latter of:
• December 31, 2032; or
• the year in which the US’s greenhouse gas emissions
from electricity generation will be 25% below 2022
emission levels.
254 Integrated Annual Report 2023
Depending on that status of the infrastructure to be built,
tax credits may be available beyond 2032. The following
are the IRA provisions that are of greatest interest to Enel.
produced by the taxpayer in the United States Credits are
available on an annual basis for components sold beginning
in 2023 until 2032 (gradually reduced starting from 2030).
Extension and expansion of federal tax credits for clean
energy: the IRA extends the production tax credit (PTC)
($26.5/MWh for projects that begin construction after De-
cember 31, 2021) and introduces a new technology-neu-
tral clean electricity tax credit commencing in 2025. It also
extends the investment tax credit (ITC) (30% for projects
that begin construction after December 31, 2021) and
launches a new technology-neutral clean electricity ITC
beginning in 2025. Solar power developers may now re-
quest PTC instead of ITC. However, to be eligible for the
full credit, projects must meet the prevailing wage and
apprenticeship requirements for the entire period of con-
struction (and perhaps also for some of the maintenance
activities); project owners that fail to comply will have to
pay a penalty or see their tax credit reduced to 20% ($5/
MWh PTC or 6% ITC). The IRA also adds stand-alone en-
ergy storage projects, in line with the conditions for solar
power, and microgrid controllers, specifically for systems
of between 4 kW and 20 MW, to the technology eligible
for ITC.
The IRA creates a bonus tax credit if domestic content re-
quirements or energy community requirements are met.
Another new bonus tax credit is available for solar and
wind facilities (and connected storage systems) located in
low-income communities.
A new 10-year clean hydrogen PTC of $3 per kilogram is
available for hydrogen produced after December 31, 2022.
For a project to be eligible, construction must begin be-
fore January 1, 2033.
Extension and expansion of federal tax credits and loans
for electric vehicles: in order to encourage the electrifica-
tion of the transportation sector, the IRA extends various
tax credits for new and previously owned electric vehicles
and commercial electric vehicles, including buses, and ex-
pands the tax credit to cover the purchase of EV charging
equipment.
The IRA allocates $1 billion for replacing heavy-duty Class
6 and 7 commercial vehicles with zero-emission vehicles
(for example, school buses, public transportation bus,
garbage trucks) and $3 billion for the US Postal Service
to purchase new electric delivery vehicles and charging
stations.
New advanced manufacturing production tax credits: the
IRA creates a new PTC for the production of components
for wind, solar and battery projects, such as solar PV cells,
PV wafers, PV modules, wind turbines, nacelles, inverters,
battery cells and modules, and many others. Tax credit
amounts vary by component, production cost and certain
capacity factors. To be eligible, the component must be
New direct payment of applicable tax credits and the
transferability of some tax credits: the IRA creates the op-
tion for some sector operators to choose between direct
pay or transferability of the tax credit, which means that
we will see changes in the ways projects are developed
and an expansion in the number of industries that devel-
op projects. Enel is particularly interested in the direct pay
option for new advanced PTC and for new clean hydrogen
PTC.
US Department of the Treasury solicits public input and
finalizes IRA tax credit guidelines
The US Department of the Treasury spent much of 2023
issuing preliminary guidance and soliciting public input
before issuing final guidance. Although preliminary guide-
lines have been published for most of the tax credits of
particular interest to Enel to encourage investment, Enel
is still awaiting the publication of final guidelines. The De-
partment of the Treasury does not expect to finalize all tax
credit guidance related to the Inflation Reduction Act be-
fore 2024.
Development of renewable energy on federal/public
lands
The Biden administration set the goal of authorizing 25
GW of renewable energy on public lands by 2025. In order
to reach this goal, the administration has ordered federal
agencies to accelerate reviews of clean energy projects
for production on public lands by establishing five new re-
newable energy coordination offices and has cut rents and
fees for solar and wind projects on public lands by more
than 50%.
Climate information
The US Securities and Exchange Commission is finalizing
the rules on what climate-related information registrants
need to disclose in their filings and annual reports. Such
information will include data on greenhouse gas emis-
sions, certain climate-related financial metrics, and mate-
rial climate risk. The rules had been scheduled to be issued
by the end of 2022, but the release date has been post-
poned several times.
Individual state policy actions
Texas Governor Abbott signs pro-fossil/anti-renewables
legislation: the
legislation promotes state-sponsored
low-interest loans for “dispatchable” generation, which is
seen largely as a boon to the natural gas industry. The law
also creates a new ancillary service that can only be satis-
fied by “dispatchable” generation, the conditions of which
will make it difficult for energy storage to participate. A
Regulatory and rate issues
255
new funding mechanism for dispatchable assets, capped
at $1 billion per year (net), will require assets to demonstrate
their availability to the market during times of grid stress.
Interconnection charges will be awarded to the new gener-
ation that exceeds an average interconnection charge, de-
termined by the Public Utilities Commission of Texas (PUCT).
The basic interconnection cost thresholds adopted by the
PUCT are acceptable according to the renewables indus-
try. The allowance for renewable energy systems intercon-
necting to lines of 138 kV or less is $12 million; for systems
interconnecting to lines greater than 138 kV, the allowance
is $22,5 million.
New resources interconnecting after 2027 will have to
demonstrate that they are able to meet an average level of
production per season, based on their activity class, both
by having on-site resources and through power purchase
agreements. Batteries can meet this requirement. Many
of these elements, including cost allocation, will be imple-
mented by PUCT or the Electric Reliability Council of Texas
(ERCOT).
California appropriates significant funds for clean energy
initiatives: at the end of 2022, California had an almost $100
billion budget surplus and so allocated significant funding
for various programs, including clean energy. Among these,
it allocated a $550 million lump sum to support distributed
backup electricity assets (DEBA) for zero or low-emission
resources to support the grid when necessary, and a one-
time $200 million appropriation for demand-side grid sup-
port (DSGS) to reduce the load on the grid during periods of
extreme stress.
In 2023, California will have a budget deficit of $31.5 billion,
but no reduction of funds has been approved in the year.
Since the budget deficit is expected to be even higher in
2024, proposals to reduce funds to DEBA and to DSGS have
been submitted.
Illinois adopts renewable energy siting reform: in January
2023, the Illinois legislation shifted renewable energy loca-
tion decisions away from local communities and adopted
pro-renewable energy siting standards that apply through-
out the state, which all communities must adopt when ap-
proving new projects. The legislation requires counties with
an existing zoning ordinance that conflicts with provisions
of the new law to amend their zoning ordinance to comply
with state law by May 30, 2023. The new law specifies set-
back requirements, restrictions on the height of the blade
tips, acoustic limitations and other restrictions. Most impor-
tantly, the law requires the county to make a decision on a
project within 30 days of the conclusion of the public hear-
ing, to avoid years of project delay and millions of dollars in
additional costs locally.
sembly established a goal of 3,000 MW of energy storage
and created the Maryland Energy Storage Program. The
new law requires the Public Service Commission to estab-
lish a competitive procurement program by July 1, 2024.
The program will include energy storage credits and mar-
ket-based incentives. The law is expected to lead to $100
million in energy cost savings for Marylanders and help re-
duce energy sector emissions by 90%.
Michigan adopts renewable energy siting reform and clean
energy legislation: in 2023 the Michigan legislature ap-
proved two important bills, signed by the governor. The first
bill established state siting standards for renewable energy
and battery energy storage that cannot be made more bur-
densome by local governments. Disputes between state law
and local authorities will be resolved by the Public Service
Commission. The second bill establishes a renewable ener-
gy standard for Michigan of 50% by 2030, 60% by 2035 and
100% of clean energy by 2040. This bill increases the cap
for distributed generation and creates a mandate for 2,500
MW of battery energy storage.
Increase utility ownership of generation: because the Infla-
tion Reduction Act allows utilities to claim tax credits at the
time of production, rather than depreciate them over the
life of a project, a number of utilities have proposed legisla-
tion to codify a preference for development of new renew-
able energy and energy storage projects by utilities. Nevada
has passed legislation that will allow NVEnergy to build most
new renewable energy and energy storage projects. Puget
Sound Energy in the state of Washington has pushed for
legislation requiring 50% of all new generation to be as-
signed to the utility. The bill failed to be approved this year.
In its plans for electric resources, the Public Service Com-
pany of Colorado (PSCo) had decided that more than 60%
of next generation projects would be owned by PSCo. The
Colorado Public Service Commission reduced the utility’s
ownership of such projects to just over 50%.
Canada
On March 28, 2023, the Canadian government unveiled a
budget that reinforces its ongoing commitment to accel-
erate the transition to a low-carbon economy. The budget
contains a series of measures supporting the development
of renewable energy plants, clean hydrogen plants and
electric vehicle charging equipment and has replenished
existing funds to support investments. The budget was
passed on June 11, 2023.
Main developments:
• Clean Hydrogen Investment Tax Credit (Hydrogen Cred-
it): 15-40%;
• Clean Technology Investment Tax Credit (Cleantech ITC):
15%;
Maryland approves major energy storage law: in April 2023,
for the first time in state history, the Maryland General As-
• Clean Electricity Investment Tax Credit (Electricity Cred-
it): 30%;
256 Integrated Annual Report 2023
• Clean Technology Manufacturing Investment Tax Credit
(Manufacturing Credit): 30%;
• Carbon Capture, Utilization and Storage Investment Tax
Credit (CCUS Credit): 15-40%.
Most investment tax credits have job requirements that
must be met in order to obtain the full amount of the re-
spective credit. These job requirements fall into two cate-
gories:
• prevailing wage requirement: requires workers to be paid
at a level comparable to the relevant wage, with benefits
and pension contributions;
• apprenticeship requirement: requires at least 10% of
total working hours to be undertaken by registered ap-
prentices.
In November 2023, the Deputy Prime Minister and Minister
of Finance presented a motion to introduce a bill entitled
“An act to implement certain provisions of the fall econom-
ic statement” tabled in Parliament on November 21, 2023
and certain provisions of the budget tabled in Parliament
on March 28, 2023. With the presentation of the Ways and
Means motion and the legislation to implement the fall eco-
nomic statement (FES), Clean Technology Investment Tax
Credit (Cleantech ITC) labor requirements are now in effect.
The Cleantech ITC is one of several amendments to the In-
come Tax Act (ITA) contained in the FES implementation act.
The bill is currently at the reading and examination stage.
Developments in provincial policies
In May 2023, Alberta citizens re-elected the United Conser-
vative Party to form a governing majority. As Prime Minister
Danielle Smith appoints ministers for relevant portfolios, re-
structures senior department officials and reprioritizes her
government, the energy industry can expect a continuation
of existing policies from the past four years. This includes
the continuation of the regulation on technological inno-
vation and the reduction of emissions, the carbon price for
primary industry that allows the development of renewable
energies, as well as the finalization of the phasing out of
coal-fired power generation.
On August 2, 2023, Alberta’s Minister of Energy has issued
an order to the Alberta Utilities Commission (AUC or Com-
mission) to block the processing of new permits for the
construction of new utility-scale renewable energy gen-
eration facilities until the Commission, the Alberta Electric
System Operator (AESO) and the Minister of Energy were
able to determine whether the continued development of
renewable resources in Alberta was increasing pressure on
electricity rates and compromising the reliability.
Meetings and requests for information took place over the
remainder of 2023. The AESO is also reviewing its current
market structure for possible changes. The Premier of Al-
berta, a conservative, oil-producing province, told the Prime
Minister of Canada that Alberta will not seek to meet the
country’s clean energy or greenhouse gas emissions re-
duction goals. Work on these issues will continue until 2024.
Africa, Asia and Oceania
India
On December 5, 2022, the Deviation Settlement Mecha-
nism and Related Matters Regulation (2022 DSM Regula-
tion) published by the Central Electricity Regulatory Com-
mission (CERC) and replacing the 2014 DSM Regulation
entered into force.
The new regulation has a negative impact on Independent
Power Producers (IPPs) with wind and solar plants. Basical-
ly, over-injection (i.e. injection into the grid in excess of the
declared generation) will be compensated:
• for PV/hybrid (wind + solar) plants, at the contractual rate
for up to a 10% deviation and at 90% of the contractual
rate for an over-injection of between 10% and 15%;
• for wind plants, at the contractual rate for up to a 15%
deviation and at 90% of the contractual rate from 15%
to 20%.
No payment will be made for an over-injection of above
20%. Compared with the previous version, the regulation
increases the remuneration percentage, and increases
the threshold over which no payment is made from 10%
to 20%.
Terms also change for under-injections (generation below
scheduled levels), with a reduction of the deviation band
from the planned amounts, with higher penalties com-
pared with 2014, breaking down as follows:
• for PV/hybrid (wind + solar) plants, with under-injections
of up to 15%, the IPP will pay the buyer the contract rate
with no further penalty. For under-injections from 10%
to 15%, the shortfall will be paid at 110% of the contract
rate, while those above 15% will be paid at 150%;
• for wind plants, for under-injections up to 15%, the IPP
will pay the buyer the contract rate with no further pen-
alty. For under-injections from 15% to 20%, the shortfall
will be paid at 110% of the contract rate, while those
above 20% will be paid at 150%.
The new DSM Regulation has an impact on revenue due
to (i) no payment of over-injections over a 15% deviation
for PV/hybrid plants and over 20% for wind plants, (ii) the
increase of deviation penalties in case of under-injections.
Morocco
The reform of Law 13.09, the key renewable energy law, ap-
proved in January 2023, permits entering into Power Pur-
chase Agreements (PPAs) with customers connected to
the medium-voltage grid, effectively opening a new mar-
ket for Enel Green Power in the country. Until now it was
possible to enter into PPAs only with end users connected
to the high-voltage and very-high-voltage grids. The sec-
ondary legislation that will make Law 13.09 enforceable
has yet to be enacted but is expected to pass in 2024.
Regulatory and rate issues
257
Enel Grids
Italy
Rates for the fifth regulatory period (2016-2023) are gov-
erned by the ARERA Resolution no. 654/2015/R/eel. This
period 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
transmission, distribution and metering services in force in
the 2020-2023 period, publishing the new integrated texts.
The method for determining the WACC for the 2022-2027
period was updated with Resolution no. 614/2021/R/com,
establishing a value of 5.2% for electricity distribution and
metering. The regulation provides for an update of the val-
ue for 2025-2027, as well as the possibility of a further an-
nual updating (in 2023 and 2024), should certain financial
indicators lead to a change in the WACC of at least 50 bps.
With Resolution no. 654/2022/R/com, ARERA confirmed
the value of WACC at 5.2% in 2023, as the conditions to
proceed with the update have not been met, while the value
of WACC for 2024 was updated to 6% with Resolution no.
556/2023/R/com.
As for distribution and metering rates, the Authority ap-
proved the definitive reference rates for 2022, calculated
by taking into account the updated balance sheet data for
2021 (Resolution no. 154/2023/R/eel) and the provisional
reference rates for 2023 on the basis of the preliminary bal-
ance sheet data for 2022 (Resolution no. 206/2023/R/eel).
The definitive reference rates for 2023 are expected to be
published in 2024.
With Resolution no. 271/2021/R/com, the Authority initi-
ated a procedure to introduce, from 2024, new methods
for recognizing the costs of infrastructure services (ROSS-
base - Adjustment for Expenditure and Service Objectives).
As part of the ROSS-base mechanism, in 2023 the Author-
ity published Resolution no. 163/2023/R/com, with which
it approved the “Integrated Text of the criteria and general
principles of the ROSS regulation” (TIROSS 2024-2031) for
infrastructure services in the electricity and gas sectors, as
well as Resolution no. 497/2023/R/com, with which it spec-
ified the application criteria, modifying the TIROSS. Finally,
with Resolution no. 616/2023/R/eel it approved distribution
and metering rates for the 2024-2027 period, publishing
the new integrated texts (TIT - provisions for delivery of
transmission and distribution services; TIME - provisions for
delivery metering services; and TIC - economic terms for
delivery of metering services).
During 2023, the Authority, implementing the government’s
provisions, progressively reintroduced the general system
258 Integrated Annual Report 2023
charges to be applied to customers (in the 1st Quarter,
they were applied only to users with available power over
16.5 kW; in the subsequent quarters they were applied to
all electricity users). The Authority also took action during
2023 with regard to social allowances, providing for, among
other things, an update of the requirements for access to
the benefits and specific strengthening measures to con-
tain the effects of the increase in energy bills.
With Resolutions no. 232/2022/R/eel and no. 712/2022/R/
eel, ARERA updated in 2022 the rate regulation for reactive
energy providing for the entry into force by April 1, 2023
of charges for reactive energy injected and an update of
the charges for reactive energy withdrawn for distributors
as well.
At the end of 2023, ARERA again updated the regulation,
providing for a single fee for excessive withdrawals and in-
jections of reactive energy paid by MV and LV customers
from 2024. It also modified the share of revenue retained
by distribution companies, which will be updated annually.
ARERA has also introduced a mechanism that incentivizes
distribution companies to install compensation systems for
reactive energy injections to the National Electricity Trans-
mission Grid.
As regards service quality, with Resolution no. 646/2015/R/
eel and no. 566/2019/R/eel as amended, the Authority es-
tablished output-based regulation for electricity distribu-
tion and metering services for the 2016-2023 period (TIQE
2016-2023), introducing tools to bridge gaps in quality of
service still existing between the various areas of the coun-
try and examine certain mechanisms concerning the ef-
fects of climate change.
As from January 1, 2024, with Resolutions no. 617/2023/R/
eel and no. 614/2023/R/eel, the Authority updated the
output-based incentive regulation of technical and com-
mercial service quality and network resilience.
In particular, with Resolution no. 617/2023/R/eel and the
related annexes TIQD and TIQC, ARERA adopted improve-
ments that radically modified the twenty-year-old regula-
tory system, specifically in terms of continuity of distribu-
tion services and introducing an incentive mechanism for
development measures.
With Resolution no. 614/2023/R/eel, ARERA defined the
regulation of resilience for the 2019-2024 period, govern-
ing the termination of the regulations in place since 2018,
modifying the incentive mechanism for resilience inter-
ventions in the 2024 plan.
With regard to relations between distributors and trad-
ers, on January 1, 2021 the new version of the Electricity
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 de-
fault of sellers, reduced the credit exposure of distribu-
tors. Consequently, the value of guarantees that all sellers
must give to distributors to cover the transport 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).
With Resolution no. 119/2022/R/eel, ARERA introduced
a single mechanism for distribution companies for the
reimbursement of system general charges and network
charges not collected by defaulting sellers in order to unify
and streamline the pre-existing mechanisms.
More specifically, the resolution confirms the application
of two deductibles for the recognition of credits relating
to network charges. On the one hand, this is to serve as an
incentive for an efficient management of the credit by the
distributor and, on the other, to remove what has already
been compensated by the rate system. The resolution
provides for requests for reimbursement to be made on
an annual basis and liquidated in the same year.
Energy efficiency – White certificates
The decree of the Ministry for the Ecological Transition of
May 21, 2021 amended the ministerial decree of January 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 dis-
tribution companies for the years 2021-2024. The decree
also updated the methods for distribution companies to
meet the obligation and for reimbursing the related costs.
Iberia
2023 electricity rates
On December 22, 2022, the National Commission for Mar-
kets and Competition (CNMC) Resolution of December
15, 2022 was published in Spain’s Official Journal, estab-
lishing the access charges for electricity transmission and
distribution networks to be applied starting from January
1, 2023, providing for an average reduction of 1.0% com-
pared with January 1, 2022.
On December 29, 2022, Order TED/1312/2022 of Decem-
ber 23, 2022 was published in Spain’s Official Journal. It es-
tablishes electricity system charges applicable from Jan-
uary 1, 2023 and sets the various regulated costs of the
electricity system for 2023. The new rates for 2023 repre-
sent an average reduction of about 40.0% compared with
the charges approved on January 1, 2022.
Natural gas rates for 2023
On December 28, 2022, the Resolution of December 22,
2022 of the Directorate General for Energy Policy and
Mines was published. It establishes the rate of last resort
(TUR) for natural gas to be applied as of January 1, 2023,
and, taking account of the provisions of Royal Decree
Law 17/2021 of September 14, provides for approximate
increases of 7.7%, 9.0% and 9.5% (excluding taxes) respec-
tively for TUR 1, TUR 2, and TUR 3. Meanwhile, the TURs
applicable to homeowners’ associations, introduced by
Royal Decree Law 18/2022 of October 18, were reduced
by around 2.0% (excluding taxes).
On March 30, 2023, the Resolution of March 28, 2023 of
the Directorate General for Energy Policy and Mines was
published. It establishes the rate of last resort (TUR) for
natural gas to be applied as of April 1, 2023, with a reduc-
tion of about 27.1%, 31% and 32.7%, respectively (excluding
taxes), for TUR 1, TUR 2, and TUR 3. Meanwhile, the TURs
applicable to homeowners’ associations, introduced by
Royal Decree Law 18/2022 of October 18, were reduced
by around 45.7% to 56.3% (excluding taxes).
On June 29, 2023 the Resolution of June 27, 2023 of the
Directorate General for Energy Policy and Mines was pub-
lished. It establishes the rate of last resort (TUR) for natural
gas to be applied as of July 1, 2023, with a reduction of
about 2.4%, 2.9% and 3.1%, respectively (excluding taxes),
for TUR 1, TUR 2, and TUR 3. Meanwhile, the TURs applica-
ble to homeowners’ associations, introduced by Royal De-
cree Law 18/2022 of October 18, were reduced by around
3.6% to 5.4% (excluding taxes).
On September 29, 2023, the Resolution of September
28, 2023 of the Directorate General for Energy Policy and
Mines was published. It establishes the rate of last resort
(TUR) for natural gas to be applied as of October 1, 2023,
with a reduction of about 3.4%, 0.3% and 1.1%, respectively
(excluding taxes), for TUR 1, TUR 2, and TUR 3. Apart from
these, the TURs applicable to homeowners’ associations,
introduced by Royal Decree Law 18/2022 of October 18,
increased by about 10.7% to 20.7% (excluding taxes).
Natural gas rates for 2024
On December 29, 2023, the Resolution of December 28,
2023 of the Directorate General for Energy Policy and
Mines was published. It establishes the rate of last resort
(TUR) for natural gas to be applied as of January 1, 2024,
with an increase of about 6.5%, 7.9% and 8.5%, respective-
ly (excluding taxes), for TUR 1, TUR 2, and TUR 3. Mean-
while, the TURs applicable to homeowners’ associations,
introduced by Royal Decree Law 18/2022 of October 18,
were increased by about 4.8% to 6.8% (excluding taxes).
Royal Decree Law 8/2023 established that VAT on gas will
increase from 5% to 10% from January 1, 2024 to March
31, 2024.
Remuneration for distribution activities
On August 3, 2022, Order TED/749/2022 of July 27 was
published. It approved the incentive or penalty for achiev-
ing a reduction in losses within the electricity distribution
network for 2016, modifying the base remuneration for
Regulatory and rate issues
259
2016 for several distribution companies, and approving
the remuneration of electricity distribution companies for
2017, 2018 and 2019. This ministerial order sets the value
of the remuneration for the years 2017 to 2019, taking into
account the previous reports of the CNMC.
Furthermore, on December 16, 2022, CNMC began pre-
paring its proposed resolution setting the remuneration
for 2020.
Closed electricity distribution grids
On April 26, 2023, Royal Decree 314/2023 of April 25 was
published. It regulates the conditions and requirements
for closed electricity distribution grids and their owners,
as well as the administrative authorization procedure and
the circumstances for revocation of that authorization.
The industrial owners of the closed grid will have to build it
or buy it from a distribution company, and will be responsi-
ble for managing it, investing in its maintenance and billing
rates, charges and other costs to the consumers connect-
ed to it, while the traders selling electricity to the members
of the closed grid will only bill for the power consumed.
Rest of the World
Latin America
Chile
The Chilean electricity sector is governed by the Gener-
al Electricity Service Act 20.018, contained in Decree 1 of
1982 issued by the Ministry of Mines, subsequently updat-
ed by the Ministry of Economy with Decree 4 of 2006 as
amended (“Ley Eléctrica”) and its corresponding imple-
menting regulation, contained in Decree 327 of 1998.
Distribution rates for 2020-2024
The process of determining rates for the 2020-2024 peri-
od is still under way. For the moment, rates continue to be
applied in accordance with the methodology in force for
the 2016-2020 period.
Argentina
Rate revisions
With Resolution no. 240/2023, the regulator ENRE ap-
proved the new rates to be applied as from April 1, 2023.
In particular, it:
• incorporates the increase in the FNEE envisaged by SE
Resolution no. 719/22 ($512/MWh from April 1, 2023)
and the first increase in the VAD (Distribution Value
Added) or CPD (Own Cost of Distribution) granted to
Edesur of 107.83%;
• publishes the new CPD or VAD, which will take effect as
from June 1, 2023 with an additional 74% increase to
apply in a future rate chart;
• establishes the new CEN and CESMC values to be ap-
plied starting from April 1, 2023, corresponding to se-
mester 54 (March 2023 - August 2023).
The average distributor rate is set at about 13,706 $/kWh
(+23%).
Service quality of electricity distribution
Following the events occurring from February 10, 2023,
which caused the interruption of low- and medium-volt-
age supply to a large number of customers, ENRE called
for a Comprehensive Technical Audit to determine the ca-
pacity and reliability of the public electricity distribution
service and monitor service quality.
The teams conducted a process audit to verify the consis-
tency of technological availability, materials, supplies and
human resources to execute the substantive management
processes consisting of primary assistance, claims, oper-
ation, corrective and preventive maintenance, investment
planning, loss management, internal cost controls and
management processes.
Investment program for the distribution grid
On August 7, 2023 a memorandum was signed between
the Ministry of Energy and Edesur, with the simultaneous
presence, notification and signature of ENRE, aimed at
ensuring that the State will provide the necessary funds
for the construction work plan prepared by Edesur, with
the aim of improving the quality of the service, in addi-
tion to adopting a time framework suitable for the exe-
cution of the works, considering the impact on the public
service deriving from the increase in electricity demand
and taking into account the urgent need to implement the
cited work plan to reduce service interruptions caused by
the high demand for electricity and overloading of grids
during periods of record high temperatures last summer.
Furthermore, seeking to ease the financial burden on us-
ers, on October 10, 2023 the Ministry of Energy issued
Resolution no. 828, which allows Edesur and Edenor to
transform the penalties to be paid to the State into a “Pro-
gram of works, jobs and/or actions to meet the challeng-
es of next summer”, provided they are in compliance with
their obligations towards CAMMESA. In compliance with
the legislation, on October 26, 2023, with Ger Gen note
no. 127/2023, the Program was presented to the Ministry
of Energy.
Memorandum of understanding for “special obligation
settlement regime”
On December 29, 2022, addressing the “special obligation
settlement regime” and the “special receivables regime”
established with Article 87 of Law 27.591, extended with
the PEN 88/2022 decree, a memorandum of understand-
ing was signed between the Ministry of Energy and ENRE,
on the one hand, and Edesur, on the other, with CAMMESA,
also referred to in the same instrument as a notified entity.
260 Integrated Annual Report 2023
This agreement provided for: (a) the recognition by Edesur
of the liability in respect of CAMMESA and the MEM (whole-
sale electricity market); (b) the recognition of a receivable
due to Edesur from the Ministry of Energy, applicable to the
partial compensation of the recognized liability; and (c) the
determination of a payment plan for the liability referred to
in point (a) after the compensation referred to in point (b),
the amount of which is within the limits of that attributed by
ENRE in the recomposition of the VAD. Furthermore, Edesur
has undertaken to apply an amount equivalent to a part of
the recognized receivable, to settle the liabilities of default-
ing users benefitting from demand support policies, as well
as to submit reporting on the investment plan associated
with the mechanism envisaged under SE Resolution no.
371/2021 to encourage the investment to increase energy
efficiency and improve the quality of electricity distribution.
On April 25, 2023, the Ministry of Energy issued a note ad-
dressed to CAMMESA, instructing it to adopt the necessary
measures to apply the agreement signed on December 29,
2022 within the framework of the “special obligation settle-
ment regime” concerning the implementation of a payment
plan for Edesur’s residual liability in respect of that compa-
ny, in accordance with the scope of the aforementioned
agreement. The foregoing was based on the calculation
report submitted by CAMMESA to the Ministry of Energy on
April 18, 2023 and the agreement issued by Edesur on April
20, 2023.
Regarding the “Acta Acuerdo Régimen Especial de Obli-
gaciones” (Article 87 of Law 27.591 of the National General
Budget for 2021), on May 18, 2023, within the scope of the
memorandum of understanding of December 29, 2022, the
payment plan with CAMMESA was implemented. The pay-
ment plan provides for 96 increasing monthly installments
and an interest rate equivalent to 50% of that in force in the
MEM. The first installment was paid on September 25, 2023.
Payment is subject to the attribution by ENRE of the recom-
position of the VAD or the CPD during the transitional rate
adjustment process.
With regard to the repayment of this financing, the agree-
ments signed with the Ministry of Energy establish that
ENRE must include the necessary resources in the frame-
work of the Comprehensive Rate Review (RTI) process in a
timely manner. For its part, the Ministry of Energy shall es-
tablish term and conditions no earlier than 180 days from
the entry into force of the rate tables resulting from the
aforementioned RTI, expressly addressing that financing,
considering an interest rate equivalent to the average rate
paid by CAMMESA on its financial resources.
To guarantee the faithful fulfillment of each of the obliga-
tions assumed by Edesur with this contract and the repay-
ment of the financing, the company assigns and transfers
to CAMMESA receivables of any sort that it may claim within
the MEM. This transfer as security will remain in force until
the total extinguishment of the financing.
Brazil
Rate revision for Enel Distribuição Ceará
The latest complete rate revisions approved for each Bra-
zilian distribution company belonging to the Enel Group
are summarized below:
Company
Enel Distribuição Rio
de Janeiro
Enel Distribuição
Ceará
Enel Distribuição São
Paulo
Average increase
Date of rate
adjustment
High
voltage
Low voltage
March 2023
-4.91%
+6.18%
April 2023
-3.77%
+5.51%
July 2023
-6.10%
-0.97%
In view of the disparity between the energy costs recog-
nized in rates and the real costs outside the control of the
distributor, in January 2015, the regulator ANEEL started
the implementation of the Tariff Flags system which ap-
plies an additional monthly component to the rate charged
to consumers, provided that the marginal system cost is
greater than the standard regulatory cost.
Rate revision for Enel Distribuição Rio de Janeiro
On October 31, 2023, ANEEL approved the extraordinary
tariff review (ETR) of Enel Distribuição Rio de Janeiro due
to the pandemic and the law prohibiting electricity cuts.
The effects of the ETR, pursuant to ANEEL Order no.
4.089/2023, are considered an interest component in the
company’s upcoming rate review on March 15, 2024.
Colombia
The Energy and Gas Regulatory Commission (CREG) de-
fines the method of remuneration of the distribution grid.
The distribution rates are determined every five years and
are updated monthly on the basis of the Producer Price
Index (IPP).
Rate revisions
With Resolution no. 122 of 2020, CREG set the distribution
rates for Codensa for the 2018-2023 period.
In March 2023, CREG published Resolution no. 101 015 of
2023, to extend the period of application of the transi-
tional measures to defer the payment of sales companies
to generation, transmission and distribution companies.
The provision allows the deferral of payment for up to 18
months and applies until April 30, 2024.
Peru
The main laws governing the Peruvian electricity market
are the Electricity Concessions Act (Decree Law 25844)
and its regulations and the Efficient Electricity Generation
Act (Law 28832).
Regulatory and rate issues
261
The Electricity Concessions Act divides the Peruvian
electricity sector into three large segments: generation,
transmission and distribution, with no company permit-
ted to participate in more than one segment. The Peruvian
electricity system consists of the National Interconnected
Electricity System (SEIN), as well as some isolated electric-
ity systems.
End-user Markets
Italy
Elimination of price protection
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 staggered
postponement of the removal of price protection: to Jan-
uary 1, 2021 for small businesses, to January 1, 2023 for
micro-enterprises and to January 2024 for domestic cus-
tomer auctions.
The ministerial decrees implementing the Competition
Act and ARERA Resolutions no. 491/2020/R/eel and no.
208/2022/R/eel have implemented the elimination of
price protection for small businesses and micro-busi-
nesses (and non-residential customers with a committed
capacity of less than 15 kW), making provision for the ac-
tivation of specific last resort services (“graduated safe-
guard services”) provided by operators awarded the con-
cession in a tender for customers who do not have chosen
a free-market supplier.
The graduated safeguard service for small businesses
lasts three years, will expire on June 30, 2024 and will be
reassigned with new auctions.
For micro-enterprises, the service will be provided until
March 31, 2027. At the end of the first service period, sup-
plies still served under graduated protection will switch to
the most economically advantageous free-market offer of
the same operator.
For non-residential micro-enterprise customers with a
committed capacity of less than 15 kW, ARERA, due to the
postponement to April 1, 2023 for technical reasons of
the start date of the last resort service dedicated to them,
established that the financial terms and conditions of the
enhanced protection service will continue to apply until
March 31, 2023 for customers already served.
With regard to residential customers, Legislative De-
cree 210/2021 has identified two categories for which
the elimination of price protections will involve different
In Peru, the process for determining distribution rates
takes place every four years and is referred to as the “Dis-
tribution Value Added Fixing” (VAD). The last approved rate
cycle is valid for the 2022-2026 period, with new VAD in
force as from November 1, 2022.
timeframes and methods: “vulnerable” customers (such
as customers over 75 years of age, recipients of a social
allowance due to economic or physical hardship, individu-
als with disabilities pursuant to Law 104/1992, users locat-
ed in emergency homes following natural disasters) and
“non-vulnerable” customers.
Decree 169 of May 18, 2023 of the MASE regulated the
assignment through competitive procedures carried out
on a territorial basis for the graduated safeguard service
for non-vulnerable residential customers, setting the mar-
ket share awardable to each operator at 30%. The same
decree established that, upon expiry of the service assign-
ment period scheduled for 31 March 2027, supplies will
switch to the most economically advantageous free-mar-
ket offer with the same operator.
ARERA Resolution no. 580/2023/R/eel, implementing the
Decree Law 181/2023 (the “Energy Decree”), scheduled
the tenders for January 10, 2024. With the earlier Reso-
lution no. 362/2023/R/eel as amended, ARERA regulated
the methods for the award and delivery of graduated safe-
guard services in which customers identified as non-vul-
nerable will be supplied with residential supplies. Pursuant
to Resolution no. 600/2023/R/eel, due to the postpone-
ment of the auctions provided for in the Energy Decree,
the service will be provided starting from July 1, 2024 by
the sellers awarded the tender. The final award is expected
by February 6, 2024. Until July 1, 2024, non-vulnerable res-
idential customers will continue to be served by the oper-
ator of the enhanced protection service.
As regards vulnerable domestic customers, the Energy
Decree refers to a provision of the Authority the definition
of the methods for the exit of customers from the great-
er protection through the assignment of a “vulnerability
service” by tender. Pending this provision, vulnerable cus-
tomers will continue to be served by the current operator
of the enhanced protection service.
As regards the gas sector, the elimination of price pro-
tections starting from January 2024 is governed by ARE-
RA Resolution no. 100/2023/R/gas, which establishes that
non-vulnerable residential customers and condominiums
262 Integrated Annual Report 2023
who have not selected a free-market offer shall move to
the free market with their seller in accordance with rules
defined by ARERA. Customers identified as vulnerable
pursuant to Decree Law 115/2022 (the Second Aid Decree)
will continue to be served under the economic and con-
tractual conditions specified by ARERA for the vulnerabil-
ity protection service.
With regard to the elimination of price safeguards for small
firms in the electricity sector, in March 2021, Enel Energia
and Servizio Elettrico Nazionale (together with Enel Italia)
appealed the decree of the Ministry for Economic Devel-
opment implementing the Competition Act before the
Lazio Regional Administrative Court, contesting the impo-
sition of the antitrust cap at 35% and the lack of provisions
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
Nazionale and Enel Italia had also challenged Resolution
no. 491/2020/R/eel with an appeal before the Lombardy
Regional Administrative Court. At the moment, no hearing
has yet been set for these appeals.
In July 2022, Enel Energia and Servizio Elettrico Nazionale,
basing their challenges on the same grounds, appealed
Resolution no. 208/2022/R/eel, relating to micro-enter-
prises and non-residential customers with a committed
capacity of less than 15 kW, before the Lombardy Region-
al Administrative Court; in November 2022, they also ap-
pealed before the Lazio Regional Administrative Court the
decree of the Ministry of the Ecological Transition setting
out how graduated safeguard services for micro-enter-
prises are to be implemented.
With Resolutions no. 136/2023/R/eel and no. 151/2023/R/
eel, ARERA established, for 2023, the procedures for ac-
cessing the customer exit compensation mechanism
pursuant to Article 20 of the Integrated Provisions Gov-
erning Last-Resort Services (TIV). With an appeal filed on
May 29, 2023, Servizio Elettrico Nazionale and Enel Italia
challenged these provisions before the Lombardy Region-
al Administrative Court through an appeal with additional
evidence to the main proceedings already brought against
Resolution no. 208/2022/R/eel.
With regard to the elimination of price safeguards for
non-vulnerable residential customers, in July 2023, Enel
Energia and Servizio Elettrico Nazionale (together with
Enel Italia) appealed the Ministry of the Environment and
Energy Security (MASE) Decree 169 of May 18, 2023 be-
fore the Lazio Regional Administrative Court, contesting
the imposition of the antitrust cap at 30% and the lack
of provisions for the reimbursement of the residual costs
of Servizio Elettrico Nazionale following the loss of cus-
tomers. Likewise, in October 2023, the two companies
(together with Enel Italia) appealed ARERA Resolution no.
362/2023/R/eel of August 3, 2023, concerning the regu-
lation of the graduated safeguard services for non-vulner-
able domestic customers, before the Lombardy Regional
Administrative Court, raising the objections already for-
mulated against the MASE ministerial decree.
In addition, with an appeal filed in January 2024, Servizio
Elettrico Nazionale (together with Enel Italia) challenged
ARERA Resolutions no. 549/2023/R/eel, no. 580/2023/R/
eel and no. 600/2023/R/eel completing the regulation re-
ferred to in Resolution no. 362/2023/R/eel, again contest-
ing the failure to reimburse the residual costs following the
loss of customers.
As part of the bill ratifying Decree Law 181/2023 (the “En-
ergy Decree”), which was approved on January 31, 2024,
a provision allowing operators of the enhanced protec-
tion service to recover otherwise non-recoverable costs
directly attributable to the service incurred since April 1,
2023 has been introduced. ARERA shall issue a resolution
to be adopted within 90 days from the date of entry into
force of the law ratifying the decree to govern the time
limits and methods for submitting the report necessary to
certify the aforementioned costs.
Electricity
With Resolution no. 146/2022/R/eel, ARERA updated, with
effect from April 1, 2022, the rate component covering the
marketing costs of the operators of the enhanced protec-
tion service (RCV). The resolution also updates the levels
of the fee for covering electricity marketing costs (PCV),
which represents the reference price for sellers on the free
market. With Resolution no. 136/2023/R/eel, ARERA up-
dated, with effect from April 1, 2023, the RCV component
and the related PCV compensation solely for residential
customers enrolled in the enhanced protection service.
With Resolution no. 600/2023/R/eel, ARERA provided for
the update of the RCV by March 2024 to take account of
adjustments to the WACC of infrastructure services. The
RCV and PCV for vulnerable customers who will be served
by the enhanced safeguard operator will be determined by
the end of June 2024.
The TIV envisages specific equalization mechanisms for
operators of the enhanced protection service, such as a
mechanism that makes it possible to regulate any imbal-
ances in the costs incurred by the operator for the supply
of electricity.
To cover the deficit generated by the extraordinary in-
crease in energy provisioning costs in 2022, ARERA Res-
olution no. 463/2022/R/eel also provided that, by the end
of 2022, the Energy and Environmental Services Fund
would disburse an advance on 2022 equalization balanc-
es to RCV operators. Resolutions no. 558/2022/R/eel, no.
743/2022/R/eel and no. 135/2023/R/eel contain the nec-
Regulatory and rate issues
263
essary implementing measures concerning the calcula-
tion and settlement of that advance and its subsequent
restitution in 2023.
With regard to settlement mechanisms for end users in
arrears in the electricity sector, in Article 18 of the TIV for
2023 the Authority governs the compensation mecha-
nism for the amounts not collected by operators of the
enhanced protection service in respect of fraudulent
withdrawals of power.
With Resolution no. 32/2021/R/eel, the Authority estab-
lished 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 mar-
ket, this only applies to customers that can be disconnect-
ed).
For customers who cannot be disconnected on the safe-
guard market, the mechanism for reimbursing non-re-
coverable charges is governed by Article 50 of the TIV for
2023.
Gas
With Resolution no.147/2022/R/gas the levels of the QVD
component were updated with effect from April 1, 2022.
The levels were subsequently updated, with effect from
April 1, 2023, with Resolution no. 137/2023/R/gas. They
have been determined so as to take account of the ef-
fects associated with the duration – less than a year – of
the period remaining at the end of the termination of the
protection service, which is expected to start from January
2024. This component, to be applied as from January 2024
to vulnerable customers, will be subsequently updated (for
at least the first year of application) with similar but simpli-
fied criteria compared with the current system by the end
of March of each year for the following 12 months, pend-
ing the acquisition of detailed data on the cost of sales
associated with vulnerable customers.
With regard to reimbursement mechanisms for end users
in arrears in the gas sector, in Articles 31-quinquies and
37.1 letter b) of the TIVG (Integrated Retail Gas Sales Code),
ARERA regulates specific mechanisms for the reimburse-
ment of arrears for providers of the last resort service and
the default service on distribution grids.
Iberia
Energy efficiency
Law 18/2014 of October 15 containing urgent measures
for growth, competitiveness and efficiency created the
National Energy Efficiency Fund to achieve energy efficien-
cy objectives.
On March 30, 2023, Order TED/296/2023 of March 27 was
published, establishing the contribution to the National
Energy Efficiency Fund for 2023, amounting to €49 million
for Endesa.
Endesa is expected to provide a contribution to the Na-
tional Energy Efficiency Fund in the amount of €99 million
in 2024, of which it must contribute at least €35 million
(35.0% of the amount). It can satisfy the rest of its obliga-
tion by submitting energy efficiency certificates (EEC).
Consumer protection measures: Bono Social
Following the publication of Royal Decree Law 8/2023 of
December 27, in Spain’s Official Journal, adopting mea-
sures for the economic and social consequences of the
wars in Ukraine and the Middle East, and to alleviate the
impact of drought, several measures to protect vulner-
able consumers already extended by Royal Decree Law
20/2022 of December 27 were further extended until June
30, 2024, including:
• the increase in the discounts of the electricity social
bonus from 25% to 65% for vulnerable consumers, and
from 40% to 80% for severely vulnerable consumers;
• a discount of 40% for the same period, for working
households covered by the voluntary price for small
consumers (PVPC) with income between 1.5 and 2
times the Public Index of Multiple Purpose Income (IP-
REM), increased by 0.3 for each additional adult mem-
ber and 0.5 for each additional minor member.
On January 21, 2023, the Order TED/81/2023 of January 27
was published, approving the distribution of the amounts
to be financed for the Bono Social allowance for 2023. The
order establishes the different unit values that must be
paid by those obliged to finance these costs.
Consumer protection measures: guarantee of
electricity services
Royal Decree Law 8/2023 of December 28, further ex-
tends the prohibition of suspending electricity, water and
gas supplies to vulnerable consumers, severely vulnerable
consumers and customers at risk of social exclusion un-
til June 30, 2024. The Minimum Viable Supply regime will
then come into force, whereby a vulnerable customer can-
not be excluded for non-payment during the four-month
payment period and an additional six-month grace period.
Consumer protection measures: tax measures
Royal Decree Law 8/2023 of December 28, has changed
tax rates: it increases VAT from 5% to 10% for all of 2024 for
consumers whose contracted power supply is less than or
equal to 10 kW (if the average daily market price of the
previous month is less than €45/MWh, the “normal” VAT of
21% is applied) or who are beneficiaries of the Bono Social
as severely vulnerable consumers.
Likewise, the special tax on electricity will rise from the
previous 0.5% to 2.5% in the 1st Quarter of 2024, and
3.8% in the 2nd Quarter of 2024. As for the tax on the
value of electricity production, which is 7% but has been
264 Integrated Annual Report 2023
suspended, a rate of 3.5% will apply in the 1st Quarter of
2024, 5.25% in the 2nd Quarter of 2024 and 7% thereaf-
ter. The electricity system will be compensated for the de-
cline in receipts within the limit of the amount necessary
to achieve balance between revenue and expenditure in
respect of those charges.
Moreover, the VAT rate applicable to deliveries, imports
and intra-community purchases of natural gas rises from
5% to 10% until March 31, 2024.
Consumer protection measures: reduction
of volatility of voluntary price for small
consumers (PVPC)
On June 14, 2023 Royal Decree 446/2023 of June 31 was
published. It modifies, with effect as from January 1, 2024,
Royal Decree 216/2014 of March 28, regarding the calcu-
lation method for determining the voluntary price for small
consumers (PVPC), the salient aspects which are as fol-
lows:
• PVPC will apply to residential consumers and micro-en-
terprises with a contracted power supply equal to or
less than 10 kW;
• the cost of energy will be partially indexed to the for-
ward markets, incorporating a basket of forward prod-
ucts on the OMIP, which will be phased in gradually at
a weight of 25% in 2024, 40% in 2025 and 55% from
2026. The remaining portion will be determined by the
spot price. The forward market portion will be divided
between the monthly (10%), quarterly (36%) and annual
(54%) products;
• the reference supplier will be reimbursed, as a com-
ponent of the PVPC, the cost of financing the Bono
Social scheme established annually in the correspond-
ing order, together with an additional payment for the
recovery of amounts incurred under Royal Decree Law
6/2022 of March 29.
This royal decree also modifies certain regulatory aspects
of generation in non-peninsular territories.
Consumer protection measures: electricity-
intensive customers
Royal Decree 444/2023 of June 13, published on June 14,
2023, amends the Charter of Electricity-Intensive Con-
sumers approved in 2020. The amendment expands the
catalogue of eligible activities and reduces certain re-
quirements, thereby expanding the number of beneficia-
ries. It also updates the maximum amount of aid to offset
the cost associated with the specific remuneration regime
for renewable energy and the cost of non-mainland elec-
tricity systems included in charges, from 85% for all activ-
ities to: 85% for sectors at significant risk; 75% for sectors
at risk (and up to 85% if they can demonstrate that 50%
of consumption comes from fossil fuel sources and have
entered into forward contracts for 10% of consumption or
5% of consumption with self-consumption from renew-
able sources); or a higher percentage for especially vul-
nerable plants (i.e., when the cost of electricity exceeds
certain gross value added thresholds). However, in no case
may charges borne by beneficiaries be less than or equal
to €0.5/MWh.
Rest of the World
Latin America
Free market
In all countries, distribution companies can supply elec-
tricity to their customers on a regulated basis, but may
also do so under free-market conditions if customers
exceed particular limits. The limits of the free market by
country are as follows:
Country
Argentina
Brazil
Colombia
Costa Rica
Guatemala
Panama
Peru
Chile
kW
>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)
>500 kW
(1) The >500 kW limit applies if the electricity consumed is generated us-
ing renewable resources, which are subsidized by the government.
In Costa Rica the only electricity purchaser is ICE, accordingly, the
concept of free-market customer does not exist.
(2)
(3) DS 018-2016-EM established that:
• the demand of customers who can choose between the regulated
market and the free market (those with a capacity between 200 and
2,500 kW) is measured for each supply point;
• customers whose capacity per supply point is greater than 2,500 kW
are free-market customers.
Regulatory and rate issues
265
266 Integrated Annual Report 2023
REPORT
ON OPERATIONS
5.
OUTLOOK
● Enel is the world’s largest privately owned electricity distribution
company
Enel will accelerate its investment in the development, digitalization
and resilience of the distribution grid, an indispensable enabler of
the energy transition.
● Enel is the world’s largest private renewable energy operator
Enel will continue to invest in the development of new renewables
capacity, adopting a business model aligned with the climate
objectives of the Paris Agreement.
● Enel manages the largest customer base among private companies
The electrification of energy consumption will enable Enel to create
value for itself and for its customers, who are the focus of the
Group’s strategy.
● A simple and attractive dividend policy
Enel΄s dividend policy is based on a fixed minimum dividend
throughout the plan period, while retaining the possibility of
increasing the dividend if cash neutrality is achieved.
267
OUTLOOK
In November 2023, the Group presented its new Strategic
Plan for 2024-2026, based on three pillars:
• profitability, flexibility and resilience through selective
capital allocation, aimed at optimizing the Enel Group’s
risk/return profile;
• effectiveness and efficiency as drivers of the Group’s op-
erations, based on process simplification, a leaner orga-
nization focused on core geographies, and streamlined
costs;
• financial and environmental sustainability to pursue value
creation in addressing the challenges of climate change.
For the three-year period 2024-2026, the Group mapped
out a total gross investment plan of €35.8 billion:
• around €18.6 billion in Grids, focusing on improving
quality, resilience and digitalization, and encouraging
new connections;
• around €12.1 billion in Renewables, particularly on on-
shore wind, solar and battery storage, also leveraging on
practices as repowering plants;
• around €3 billion in Customer experience, with an active
management of the customer base through multi-play
bundled offers, including goods and services in an inte-
grated portfolio available through a single touchpoint for
the customer.
Financial targets
Profit growth
Ordinary EBITDA (€ billions)
Ordinary profit (€ billions)
Value creation
Dividend per share (€/share)
As a result of the strategic actions described above, the
Enel Group’s ordinary EBITDA is expected to increase to be-
tween €23.6 billion and €24.3 billion in 2026, while Group
net ordinary income is expected to increase to between
€7.1 billion and €7.3 billion.
Dividend policy provides for a minimum fixed dividend per
share (DPS) of €0.43 for the 2024-2026 period, with a po-
tential increase up to a 70% payout on net ordinary income
if cash neutrality is achieved.
The following are planned for 2024:
• investment in distribution grids focusing on geograph-
ical areas that have fair and transparent regulatory
frameworks in place, in particular in Italy;
• selective investment in renewables, aimed at maximizing
the return on capital employed and minimizing risks;
• active management of the customer base through bun-
dled multi-play offers.
In view of the foregoing, the financial targets on which the
Group’s 2024-2026 Plan is based are reported below.
2023
22.0
6.5
0.43
2024
22.1-22.8
6.6-6.8
2026
23.6-24.3
7.1-7.3
0.43(1)
0.43(1)
Increase in DPS up to a payout of 70%
ordinary profit if cash neutrality is achieved(2)
(1) Minimum DPS
(2) Cash neutrality is achieved if funds from operations (FFO) fully cover Group net investment plus dividends in excess of the fixed minimum dividend.
268 Integrated Annual Report 2023
OUTLOOK
OTHER INFORMATION
Non-EU subsidiaries
At the date of approval by the Board of Directors of the fi-
nancial statements of Enel SpA for 2023 – March 21, 2024
– the Enel Group meets the “conditions for the listing of
shares of companies with control over companies estab-
lished 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 purpos-
es of consolidation referred to in Article 15, paragraph
2, of the CONSOB Markets Regulation, 49 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, 2022;
• they are: 1) 25 Mile Creek Windfarm LLC (a United
States company belonging to Enel North America Inc.);
2) 25RoseFarms Holdings LLC (a United States compa-
ny belonging to Enel North America Inc.); 3) Alta Farms
Azure Ranchland Holdings LLC (a United States compa-
ny belonging to Enel North America Inc.); 4) Alta Farms
Wind Project II LLC (a United States company belonging
to Enel North America Inc.); 5) Ampla Energia e Serviços
SA (a Brazilian company belonging to Enel Américas
SA); 6) Aurora Wind Project LLC (a United States com-
pany belonging to Enel North America Inc.); 7) Azure
Blue Jay Holdings LLC (a United States company be-
longing to Enel North America Inc.); 8) Azure Sky Wind
Project LLC (a United States company belonging to
Enel North America Inc.); 9) Blue Jay Solar I LLC (a Unit-
ed States company belonging to Enel North America
Inc.); 10) Cimarron Bend Wind Holdings I LLC (a United
States company belonging to Enel North America Inc.);
11) Companhia Energética do Ceará - Coelce (a Brazil-
ian company belonging to Enel Américas SA); 12) Elet-
ropaulo Metropolitana Eletricidade de São Paulo SA (a
Brazilian company belonging to Enel Américas SA); 13)
Empresa Distribuidora Sur SA - Edesur (an Argentine
company belonging to Enel Américas SA); 14) Empresa
Eléctrica Pehuenche SA (a Chilean company belonging
to Enel Chile SA); 15) Enel Américas SA (a Chilean sub-
sidiary of Enel SpA); 16) Enel Argentina SA (an Argentine
company belonging to Enel Américas SA); 17) Enel Bra-
sil SA (a Brazilian company belonging to Enel Américas
SA); 18) Enel Chile SA (a Chilean subsidiary of Enel SpA);
19) Enel Colombia SA ESP (formerly Emgesa SA ESP, a
Colombian company belonging to Enel Américas SA);
20) Enel Distribución Chile SA (a Chilean company be-
longing to Enel Chile SA); 21) Enel Distribución Perú SAA
(a Peruvian company belonging to Enel Américas SA);
22) Enel Finance America LLC (a United States company
belonging to Enel North America Inc.); 23) Enel Fortuna
SA (a Panamanian company belonging to Enel Américas
SA); 24) Enel Generación Chile SA (a Chilean company
belonging to Enel Chile SA); 25) Enel Generación Perú
SAA (a Peruvian company belonging to Enel Américas
SA); 26) Enel Green Power Canada Inc. (a Canadian
company belonging to Enel North America Inc.); 27) Enel
Green Power Chile SA (a Chilean company belonging
to Enel Chile SA); 28) Enel Green Power Diamond Vista
Wind Project LLC (a United States company belonging
to Enel North America Inc.); 29) Enel Green Power Méxi-
co S de RL de Cv (a Mexican company belonging to Enel
Green Power SpA); 30) Enel Green Power North America
Inc. (a United States company belonging to Enel North
America Inc.); 31) Enel Green Power Perú SAC (a Peru-
vian company merged into Enel Generación Perú SAA
on August 1, 2023); 32) Enel Green Power Rattlesnake
Creek Wind Project LLC (a United States company
belonging to Enel North America Inc.); 33) Enel Green
Power Roseland Solar LLC (a United States company
belonging to Enel North America Inc.); 34) Enel Green
Power South Africa (Pty) Ltd (a South African company
belonging to Enel Green Power SpA); 35) Enel Kansas
LLC (a United States company belonging to Enel North
America Inc.); 36) Enel North America Inc. (a US subsidi-
ary of Enel SpA); 37) Enel Perú SAC (a Peruvian company
belonging to Enel Américas SA); 38) Enel Rinnovabile
SA de Cv (a Mexican company belonging to Enel Green
Power SpA); 39) Enel Trading North America LLC (a
United States company belonging to Enel North Amer-
ica Inc.); 40) Enel X North America Inc. (a United States
company belonging to Enel North America Inc.); 41)
Geotérmica del Norte SA (a Chilean company belonging
to Enel Chile SA); 42) High Lonesome Wind Power LLC (a
United States company belonging to Enel North Amer-
ica Inc.); 43) Red Dirt Wind Project LLC (a United States
company belonging to Enel North America Inc.); 44)
Renovables de Guatemala SA (a Guatemala company
belonging to Enel Américas SA); 45) Rock Creek Wind
Project LLC (a United States company belonging to Enel
Other information
269
North America Inc.); 46) Seven Cowboy Wind Project
LLC (a United States company belonging to Enel North
America Inc.); 47) Thunder Ranch Wind Project LLC (a
United States company belonging to Enel North Ameri-
ca Inc.); 48) Tradewind Energy Inc. (a United States com-
pany belonging to Enel North America Inc.); 49) White
Cloud Wind Project LLC (a United States company be-
longing 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 2023 consolidated finan-
cial statements of the Enel Group will be made avail-
able to the public by Enel SpA (pursuant to Article 15,
paragraph 1A) of the Markets Regulation) at least 15
days prior to the day scheduled for the Ordinary Share-
holders’ Meeting called to approve the 2023 financial
statements of Enel SpA together with the summary
statements showing the essential data of the latest
annual financial statements of subsidiaries and associ-
ated companies (pursuant to the applicable provisions
of Article 77, paragraph 2-bis, of the CONSOB Issuers
Regulation approved with Resolution no. 11971 of May
14, 1999);
• the articles of association and composition and pow-
ers of the control bodies from all the above subsidiaries
have been obtained by Enel SpA and are available in up-
dated form to CONSOB where the latter should request
such information for supervisory purposes (pursuant to
Article 15, paragraph 1B) of the Markets Regulation);
• Enel SpA has verified that the above subsidiaries:
– provide the auditor of the Parent, Enel SpA, with 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 Ar-
ticle 2428, paragraph 2, no. 6-bis of the Italian Civil Code
are reported in the following notes to the consolidated
financial statements: 48 “Financial instruments by cate-
gory”, 49 “Risk management”, 51 “Derivatives and hedge
accounting” and 52 “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 2023.
Such operations include transactions whose significance,
size, nature of the counterparties, subject matter, method
Subsequent events
Significant events following the close of the year are dis-
cussed in note 60 “Events after the reporting period” of
the consolidated financial statements.
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.
270 Integrated Annual Report 2023
Transactions with related parties
For more information on transactions with related parties,
please see note 54 “Related parties” of the consolidated fi-
nancial statements.
Reconciliation of equity and profit of Enel SpA and the
corresponding consolidated figures
Pursuant to CONSOB Notice no. DEM/6064293 of July 28,
2006, the following table provides a reconciliation of Group
profit for the year and equity with the corresponding fig-
ures 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(1)
Translation reserve
Goodwill
Intercompany dividends
Elimination of unrealized intercompany profits, net of tax effects
and other minor adjustments
OWNERS OF THE PARENT(1)
NON-CONTROLLING INTERESTS
CONSOLIDATED FINANCIAL STATEMENTS(1)
Income
statement
Equity
Income
statement
at Dec. 31, 2023
at Dec. 31, 2022
3,032
608
37,883
(104,457)
7,157
1,828
Equity
38,342
(104,604)
6,299
90,392
4,616
88,500
-
(126)
(5,968)
(407)
3,438
829
4,267
(5,289)
13,042
-
184
31,755
13,354
45,109
-
-
(9,807)
(2,112)
1,682
1,238
2,920
(5,912)
13,742
-
(1,413)
28,655
13,425
42,080
(1) Figures at December 31, 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting pe-
riods beginning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
Other information
271
272 Integrated Annual Report 2023
CONSOLIDATED FINANCIAL
STATEMENTS
6.
CONSOLIDATED
FINANCIAL
STATEMENTS
● Improvement of cash flows from operating activities
Management actions made it possible to significantly improve the
generation of cash flows from operating activities, equal to about
€14.6 billion, an increase of about €6.0 billion compared with 2022
(about +69.0%).
● Revenues at €95,565 million (€140,517 million in 2022, -32%)
The change is mainly attributable to lower average sales prices in
an environment characterized by the progressive normalization of
the energy sector compared with 2022, as well as to changes in the
consolidation scope.
● Climate change
All Group evaluation processes take account of the long-term
impacts of climate change.
273
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated Income Statement
Millions of euro
Notes
Revenue
Revenue from sales and services
Other income
Costs
Electricity, gas and fuel
Services and other materials
Personnel expenses
Net impairment/(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 from hyperinflation
Share of profit/(loss) of equity-accounted investments(1)
Pre-tax profit(1)
Income taxes
Profit/(Loss) from continuing operations(1)
Attributable to owners of the Parent(1)
Attributable to non-controlling interests
Profit/(Loss) from discontinued operations(1)
Attributable to owners of the Parent(1)
Attributable to non-controlling interests
Profit/(Loss) 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/(loss) per share from continuing operations(1)
Basic earnings/(loss) per share from discontinued operations(1)
Diluted earnings per share
Diluted earnings per share
Diluted earnings/(loss) per share from continuing operations(1)
Diluted earnings/(loss) per share from discontinued operations(1)
11.a
11.b
[Subtotal]
12.a
12.b
12.c
12.d
12.e
12.f
12.g
[Subtotal]
13
14
15
14
15
15
16
17
7
18
18
18
2023
2022
of which with
related parties
of which with
related parties
12,939
389
27,880
3,800
581
50
154
34
92,882
2,683
95,565
46,270
18,304
5,030
1,334
8,089
6,125
(3,385)
81,767
(2,966)
10,832
1,558
2,916
2,167
5,966
284
(41)
7,416
2,778
4,638
3,813
825
(371)
(375)
4
4,267
3,438
829
0.32
0.36
(0.04)
0.32
0.36
(0.04)
7,260
18
11,578
3,351
620
(7)
239
89
135,653
4,864
140,517
96,896
20,228
4,570
1,278
7,447
4,685
(3,415)
131,689
2,365
11,193
3,118
3,430
3,414
5,880
290
(60)
8,677
3,523
5,154
3,573
1,581
(2,234)
(1,891)
(343)
2,920
1,682
1,238
0.15
0.34
(0.19)
0.15
0.34
(0.19)
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
274 Integrated Annual Report 2023
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(1)
Cumulative other comprehensive income that may be subsequently
reclassified to profit or loss in respect of non-current assets and
disposal groups classified as held for sale/discontinued operations(1)
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
Cumulative other comprehensive income that may not be
subsequently reclassified to profit or loss in respect of non-current
assets and disposal groups classified as held for sale/discontinued
operations
Total other comprehensive income/(expense) for the year
37
Comprehensive income/(expense) for the year
Attributable to:
- owners of the Parent
- non-controlling interests
2023
4,267
2,714
49
98
11
(523)
16
(150)
3
(1)
2,217
6,484
5,172
1,312
2022
2,920
(1,677)
(70)
233
(44)
959
(78)
303
13
21
(340)
2,580
1,658
922
(1) The figure for 2022 has been adjusted to reflect the classification of the “Change in translation reserve” referring to Rusenergosbyt LLC, a Russian company
sold in December 2023, to “discontinued operations”.
Consolidated financial statements
275
Statement of Consolidated Financial Position
Millions of euro
ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Goodwill
Deferred tax assets(1)
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(1)
TOTAL ASSETS(1)
at Dec. 31, 2023
at Dec. 31, 2022
of which with
related parties
of which with
related parties
Notes
19
22
23
24
25
26
27
28
29
31
89,801
97
17,055
13,042
9,218
1,650
2,383
444
8,750
2,249
[Total]
144,689
33
34
28
27
30
32
35
[Total]
36
4,290
17,773
212
705
6,407
4,329
4,099
6,801
44,616
5,919
195,224
88,521
94
17,520
13,742
11,175
1,281
3,970
508
8,359
2,486
147,656
4,853
16,605
106
561
14,830
13,753
4,314
11,041
66,063
6,155
219,874
4
1,930
6
1,266
174
92
-
1,885
-
1,563
5
104
153
(1) Figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods beginning
on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
276 Integrated Annual Report 2023
Millions of euro
LIABILITIES AND EQUITY
Equity attributable to owners of the Parent
Share capital
Treasury share reserve
Other reserves
Retained earnings(1)
Non-controlling interests
Total equity(1)
Non-current liabilities
Long-term borrowings
Employee benefits
Provisions for risks and charges (non-current portion)
Deferred tax liabilities(1)
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(1)
Total liabilities(1)
TOTAL LIABILITIES AND EQUITY(1)
Notes
[Total]
37
38
39
40
25
27
28
41
42
[Total]
38
38
40
44
27
28
45
43
[Total]
36
at Dec. 31, 2023
at Dec. 31, 2022
of which with
related parties
of which with
related parties
10,167
(59)
6,551
15,096
31,755
13,354
45,109
10,167
(47)
2,740
15,795
28,655
13,425
42,080
61,085
659
68,191
774
2,320
6,018
8,217
3,373
5,743
8
4,236
91,000
4,769
9,086
1,294
15,821
1,573
6,461
2,126
909
14,760
56,799
2,316
150,115
195,224
8
18
3
111
2,829
15
53
40
2,202
6,055
9,794
5,895
5,747
-
4,246
102,130
18,392
2,835
1,325
17,641
1,623
16,141
1,775
853
11,713
72,298
3,366
177,794
219,874
9
17
14
110
2,810
43
1
47
(1) Figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods beginning
on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
Consolidated financial statements
277
Statement of Changes in Consolidated Equity (note 37)
Millions of euro
Share capital and reserves attributable to owners of the Parent
Share
capital
Share
premium
reserve
Treasury
share
reserve
Reserve
for equity
instruments
- perpetual
hybrid bonds
Legal
reserve
Other
reserves
Translation
reserve
Hedging
reserve
Hedging
costs
reserve
Reserve from
measurement
Reserve from
of financial
equity-
Reserve from
Reserve from
disposal of
acquisitions
equity interests
instruments at
accounted
Actuarial
without loss of
FVOCI
investments
reserve
of non-
controlling
interests
Retained
earnings
Equity
attributable to
owners of the
Non-
controlling
Parent
interests
Total equity
At December 31, 2021
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
(39)
(721)
(1,325)
(843)
17,801
29,653
12,689
42,342
Application of new accounting
policies
-
-
-
-
-
-
-
-
-
At December 31, 2021 restated
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
(39)
(721)
(1,325)
(2,378)
(843)
Distribution of dividends
Coupons paid to holders of hybrid
bonds
Reclassifications
Purchase of treasury shares
Payments of own shares
Reserve for share-based payments
(LTI bonus)
Equity instruments - hybrid
perpetual bonds
Monetary restatement (IAS 29)
Change in the consolidation scope
Transactions in non-controlling
interests
Comprehensive income for the
period
of which:
- other comprehensive expense
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(14)
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
(3)
8
-
-
-
-
-
-
-
Distribution of dividends
Coupons paid to holders of hybrid
bonds
Reclassifications
Purchase of treasury shares
Payments of own shares
Reserve for share-based payments
(LTI bonus)
Equity instruments - hybrid
perpetual bonds
Monetary restatement (IAS 29)
Change in the consolidation scope
Transactions in non-controlling
interests
Comprehensive income for the
period
of which:
- other comprehensive expense
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(21)
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
986
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21
(9)
(3)
-
-
-
-
-
-
-
At December 31, 2022 restated
10,167
7,496
(47)
5,567
2,034
2,332
(5,912)
(3,553)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,365
(31)
18
(10)
-
-
-
-
-
-
-
-
5
5
879
(1,293)
(52)
(31)
224
249
1,682
1,658
2,580
21
14
(1)
4
(16)
(30)
(319)
224
249
(476)
(1,063)
(2,390)
(1,192)
control
(2,378)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
-
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(120)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(21)
10
10
(1)
(31)
(22)
14
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
18
-
10
(2)
(2)
17,799
(3,963)
29,651
(3,963)
12,689
(937)
(123)
(123)
(14)
(14)
(14)
-
-
-
-
-
-
-
-
-
-
-
-
-
316
56
379
922
(316)
1,238
13,425
(1,177)
202
(397)
(11)
(2)
42,340
(4,900)
(123)
-
3
8
-
7
726
1,453
(340)
2,920
42,080
(5,392)
(182)
(26)
-
9
(3)
986
493
692
(32)
-
3
8
-
410
1,397
(372)
(24)
1,682
28,655
(4,215)
(182)
(26)
-
9
(3)
986
291
1,089
(21)
411
1,682
15,795
(4,215)
(182)
(14)
(26)
9
291
-
3
-
-
-
-
-
-
-
-
-
-
(415)
2,111
-
-
43
-
(38)
(375)
(1,185)
(2,390)
(1,213)
3,438
15,096
1,734
3,438
31,755
483
829
2,217
4,267
13,354
45,109
879
(1,293)
-
-
-
-
-
-
-
-
-
-
1,038
-
-
-
-
-
-
-
-
-
49
-
(52)
-
(81)
-
-
-
-
-
-
-
-
-
-
(415)
2,111
43
97
(120)
3,438
5,172
1,312
6,484
At December 31, 2023
10,167
7,496
(59)
6,553
2,034
2,341
(5,289)
(1,393)
278 Integrated Annual Report 2023
Millions of euro
Share capital and reserves attributable to owners of the Parent
Share
Treasury
Share
premium
share
capital
reserve
reserve
hybrid bonds
reserve
reserves
reserve
reserve
Legal
Other
Translation
Hedging
Hedging
costs
reserve
Reserve
for equity
instruments
- perpetual
Reserve from
measurement
of financial
instruments at
FVOCI
Reserve from
equity-
accounted
investments
Reserve from
disposal of
equity interests
without loss of
control
Reserve from
acquisitions
of non-
controlling
interests
Actuarial
reserve
Equity
attributable to
owners of the
Parent
Retained
earnings
Non-
controlling
interests
Total equity
(721)
(1,325)
(2,378)
(843)
17,801
29,653
12,689
42,342
-
-
-
-
(2)
(2)
-
(2)
(721)
(1,325)
(2,378)
(843)
At December 31, 2021
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
(39)
At December 31, 2021 restated
10,167
7,496
(36)
5,567
2,034
2,313
(8,125)
(2,268)
(39)
Application of new accounting
policies
Distribution of dividends
Coupons paid to holders of hybrid
bonds
Reclassifications
Purchase of treasury shares
Payments of own shares
Reserve for share-based payments
(LTI bonus)
Equity instruments - hybrid
perpetual bonds
Monetary restatement (IAS 29)
Change in the consolidation scope
Transactions in non-controlling
Comprehensive income for the
interests
period
of which:
- other comprehensive expense
- profit/(loss) for the year
Distribution of dividends
Coupons paid to holders of hybrid
bonds
Reclassifications
Purchase of treasury shares
Payments of own shares
Reserve for share-based payments
(LTI bonus)
Equity instruments - hybrid
perpetual bonds
Monetary restatement (IAS 29)
Change in the consolidation scope
Transactions in non-controlling
Comprehensive income for the
interests
period
of which:
- other comprehensive expense
- profit/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(14)
3
(21)
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
986
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
(3)
8
21
(9)
(3)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
5
-
-
-
-
-
-
-
-
-
-
-
1,365
(31)
18
(10)
879
(1,293)
(52)
1,038
49
(415)
2,111
43
(415)
2,111
43
-
(38)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
At December 31, 2022 restated
10,167
7,496
(47)
5,567
2,034
2,332
(5,912)
(3,553)
(81)
At December 31, 2023
10,167
7,496
(59)
6,553
2,034
2,341
(5,289)
(1,393)
879
(1,293)
(52)
(31)
224
249
10
-
10
-
-
-
-
-
-
-
(1)
-
-
(31)
-
(22)
-
-
14
-
-
-
-
-
-
-
18
18
-
10
-
-
-
-
-
-
-
-
21
-
-
-
-
-
-
-
-
-
14
(1)
224
-
249
-
-
-
-
-
-
-
-
-
4
(16)
-
-
-
-
-
-
-
-
-
-
-
(30)
(319)
-
-
-
(476)
(1,063)
(2,390)
(1,192)
-
-
-
-
-
-
-
-
4
-
-
-
-
-
-
-
-
-
(2)
-
97
(120)
97
-
(120)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(21)
-
-
-
(375)
(1,185)
(2,390)
(1,213)
17,799
(3,963)
(123)
-
(14)
3
-
-
411
-
-
29,651
(3,963)
(123)
-
(14)
3
8
-
410
1,397
(372)
1,682
1,658
-
1,682
15,795
(4,215)
(182)
(14)
(26)
9
-
-
291
-
-
(24)
1,682
28,655
(4,215)
(182)
-
(26)
9
(3)
986
291
1,089
(21)
12,689
(937)
42,340
(4,900)
-
-
-
-
-
-
316
56
379
922
(316)
1,238
13,425
(1,177)
-
-
-
-
-
-
202
(397)
(11)
(123)
-
(14)
3
8
-
726
1,453
7
2,580
(340)
2,920
42,080
(5,392)
(182)
-
(26)
9
(3)
986
493
692
(32)
3,438
5,172
1,312
6,484
-
3,438
15,096
1,734
3,438
31,755
483
829
2,217
4,267
13,354
45,109
Consolidated financial statements
279
Consolidated Statement of Cash Flows
Notes
12.d
12.e
14-15
16
33
34
44
28
28
14-15
14-15
17
19-22
23
8
8
48.3
48.3
Millions of euro
Profit for the year
Adjustments for:
Net impairment losses on trade receivables and other financial assets
Depreciation, amortization and other impairment losses
Financial (income)/expense
Net (gains)/losses from equity-accounted investments
Income taxes
Changes in net working capital:
- inventories
- trade receivables
- trade payables
- other contract assets
- other contract liabilities
- other assets/liabilities
Accruals to provisions
Utilization of provisions
Interest income and other financial income collected(1)
Interest expense and other financial expense paid(1)
Net (income)/expense from measurement of commodities
Income taxes paid
Net capital gains
Cash flows from operating activities (A)(1)
of which: discontinued operations
Investments in property, plant and equipment
Investments in intangible assets
Capital grants received
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)
of which: discontinued operations
New long-term borrowings
Repayments of borrowings
Other changes in net financial debt
Collections/(Payments) associated with derivatives connected with
borrowings(1)
Payments for acquisition of equity investments without change of control
and other transactions in non-controlling interests
Issues/(Redemptions) of hybrid bonds
Purchase of treasury shares
Dividends and interim dividends paid
Coupons paid to holders of hybrid bonds
Cash flows from/(used in) financing activities (C)(1)
of which: discontinued operations
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)
2023
2022
of which with
related parties
of which with
related parties
(242)
(1,272)
31
(783)
154
(34)
(97)
4,267
1,355
8,457
3,437
(17)
2,807
(604)
435
(2,487)
(1,165)
(107)
172
2,548
1,403
(1,647)
2,049
(5,657)
1,359
(2,958)
369
14,620
132
(11,383)
(1,385)
413
(795)
(17)
2,083
474
(10,610)
(442)
6,093
(6,006)
(4,072)
-
(25)
986
(20)
(5,135)
(182)
(8,361)
(16)
(49)
(4,400)
11,543
7,143
297
19
10
(52)
239
(89)
(125)
2,920
1,288
8,809
2,499
(23)
3,470
(3,961)
(2,166)
(2,783)
1,333
15
254
(614)
803
(1,521)
2,715
(5,134)
(927)
(1,934)
(355)
8,649
(391)
(11,281)
(1,961)
-
(1,261)
(1,275)
2,032
120
(13,626)
(351)
22,399
(9,359)
(620)
-
12
-
(14)
(4,901)
(123)
7,394
656
136
2,553
8,990
11,543
(1)
In order to improve presentation, for comparative purposes only, realized financial income and expense connected solely with borrowings have been reclas-
sified from “Collections/(Payments) associated with derivatives connected with borrowings” in the section on cash flows from financing activities to the items
“Interest income and other financial income collected” and “Interest expense and other financial expense paid” included in cash flows from operating activities.
(2) Of which cash and cash equivalents equal to €11,041 million at January 1, 2023 (€8,315 million at January 1, 2022), short-term securities equal to €78 million
at January 1, 2023 (€88 million at January 1, 2022), cash and cash equivalents pertaining to “Assets classified as held for sale” in the amount of €98 million at
January 1, 2023 (€44 million at January 1, 2022) and cash and cash equivalents pertaining to “Discontinued operations” equal to €326 million at January 1, 2023
(€543 million at January 1, 2022).
(3) Of which cash and cash equivalents equal to €6,801 million at December 31, 2023 (€11,041 million at December 31, 2022), short-term securities equal to €81
million at December 31, 2023 (€78 million at December 31, 2022), cash and cash equivalents pertaining to “Assets classified as held for sale” in the amount of
€261 million at December 31, 2023 (€98 million at December 31, 2022) and cash and cash equivalents pertaining to “Discontinued operations” equal to €326
million at December 31, 2022.
280 Integrated Annual Report 2023
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 Margherita
137, Rome, Italy, and since 1999 has been listed on the Milan
stock exchange.
There were no changes in the company name in 2023.
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 of the Group as at
and for the year ended December 31, 2023 comprise the
financial statements of Enel SpA, its subsidiaries and Group
holdings 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 21, 2024.
These consolidated financial statements have been audited
by KPMG SpA.
Basis of presentation
The consolidated financial statements as at and for the year
ended December 31, 2023 have been prepared in accor-
dance with international accounting standards (Internation-
al Accounting Standards - IAS and International Financial
Reporting Standards - IFRS) issued by the International Ac-
counting Standards Board (IASB), the interpretations of the
IFRS Interpretations Committee (IFRSIC) and the Standing
Interpretations Committee (SIC), recognized in the Europe-
an 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 referred 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 consolidated
comprehensive income, the statement of consolidated fi-
nancial position, the statement of changes in consolidated
equity and the consolidated statement of cash flows and
the related notes.
The assets and liabilities recognized in the statement of
financial position are classified on a “current/non-current
basis”, with separate reporting of assets held for sale and
liabilities included in disposal groups held for sale. Current
assets, which include cash and cash equivalents, are assets
that are intended to be realized, sold or consumed during
the normal operating cycle of the Group; current liabilities
are liabilities that are expected to be settled during the nor-
mal operating cycle of the Group.
The income statement classifies costs on the basis of
their nature, with separate reporting of profit/(loss) from
continuing operations and profit/(loss) from discontinued
operations attributable to owners of the Parent and to
non-controlling interests.
The consolidated cash flow statement is prepared using 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 service
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 in-
vestments;
Notes to the consolidated financial statements
281
• 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 effects
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 note 46 “Cash flows”.
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
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
amount of revenue, costs, assets and liabilities and the re-
lated disclosures concerning the items involved as well as
contingent assets and liabilities. The estimates and man-
agement’s judgments are based on previous experience
and other factors considered reasonable in the circum-
stances. They are formulated when the carrying 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 periodical-
ly revised and the effects of any changes are reflected
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
financial statements, the following sections examine the
main items affected by the use of estimates and the cases
that reflect management judgments to a significant de-
gree, underscoring the main assumptions used by man-
agement 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 anal-
ysis carried out in accordance with the requirements of
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 measured
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 fig-
ures are shown in millions of euro unless stated otherwise.
The consolidated income statement, the statement of fi-
nancial position and the consolidated statement of cash
flows report transactions with related parties, the definition
of which is given in note 2.2 “Material accounting policies”.
The consolidated financial statements provide comparative
information in respect of the previous year.
Practice Statement 2 “Making Materiality Judgments”, is-
sued by the International Accounting Standards Board
(IASB).
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, 2023 affected
by management’s use of estimates and judgments refer
to the impairment of non-financial assets and obligations
connected with the energy transition, including those for
decommissioning and site restoration of certain generation
plants. For further details on these items, please see note
19 “Property, plant and equipment”, note 24 “Goodwill”, and
note 40 “Provisions for risks and charges”.
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 ba-
sis of electricity consumption measured through periodic
(and pertaining to the year) meter readings or on the vol-
umes notified by distributors and transporters, an estimate
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 distribution
network and that invoiced in the period, taking account
of any network losses. Revenue between the date of the
282 Integrated Annual Report 2023
last meter reading and the year-end is based on estimates
of the daily consumption of individual customers, primar-
ily determined on their historical information, adjusted to
reflect the climate factors or other matters that may affect
the estimated consumption.
For more details on such revenue, please see note 11.a
“Revenue from sales and services”.
Impairment of non-financial assets
When the carrying amount of property, plant and equip-
ment, investment property measured at cost, intangible
assets, right-of-use assets, goodwill and investments in
associates/joint ventures 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.
Verification of the recoverable amount of such assets is
performed in accordance with the provisions of IAS 36, as
described in greater detail in note 24 “Goodwill”.
In order to determine the recoverable amount, the Group
generally adopts the value in use criterion, intended as the
present value of the estimated future cash flows generat-
ed by the asset, discounted 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
management, containing forecasts for volumes, revenue,
operating costs and investments. These projections cov-
er 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 ex-
ceed the average long-term growth rate of the market
involved.
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 of such amounts could gen-
erate different recoverable amounts. The analysis of each
group of non-financial assets is unique and requires man-
agement to use estimates and assumptions considered
prudent and reasonable in the specific circumstances.
In line with its business model and in the context of the
energy transition process, the Group has also carefully as-
sessed whether climate change issues have affected the
reasonable and supportable assumption used to estimate
expected cash flows. In this regard, where necessary, the
Group has also taken account of the long-term impact of
climate change, in particular by considering in the estima-
tion of the terminal value a long-term growth rate in line
with the change in electricity demand 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 changes in these assumptions, is provided in note 24
“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
receivables and other financial assets measured at amor-
tized 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 as-
sumptions about risk of default and on the measurement
of expected credit losses. Management uses judgment in
making these assumptions and selecting the inputs for the
impairment calculation, based on the Group’s past experi-
ence, current market conditions as well as forward-looking
estimates at the end of each reporting period.
The expected credit loss (ECL) – determined considering
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).
For additional details on the general simplified approach
used to determine expected credit losses, please see note
48 “Financial instruments by category”.
Based on the specific reference market and the regulatory
context of the sector, as well as expectations of recovery
after 90 days, for trade receivables, contract assets and
lease receivables, the Group mainly applies a default defi-
nition of 180 days past due to determine expected cred-
it losses, as this is considered an effective indication 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 them into
specific clusters, taking into account the specific regulato-
ry and business context. Only if the trade receivables are
deemed to be individually significant by management and
there is specific information about any significant increase
in credit risk, does the Group apply an analytical approach.
Based on specific management evaluations, the for-
ward-looking adjustment can be applied considering
Notes to the consolidated financial statements
283
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
used, please see note 48 “Financial instruments by cat-
egory”.
Depreciable amount of certain elements of Italian
hydroelectric plants subsequent to enactment of Law
134/2012
Italian regulations governing large-scale hydroelectric
concessions were significantly modified by the “Simpli-
fications Decree” (Decree Law 135 of 2018, ratified with
Law 12 of February 11, 2019). The regulations introduce a
number of innovations which, if applied to existing con-
cessions, would require a review of the useful lives of cer-
tain investments in hydroelectric plants in order to reflect
the possibility that, at the end of the concession, some
assets could be transferred free of charge to the new
concession holder. However, in estimating the useful lives
of these plants, management, with the support of a legal
opinion, considered the foreseeable outcome of the ap-
peals promptly lodged by the Group – and others – and
the related constitutionality issues, which have also been
raised by industrial associations. Consequently, we believe
that the legislation raises serious constitutionality issues
that will be effectively recognized in the appropriate fora.
Accordingly, management deemed it appropriate not to
reflect the changes introduced by the regulations and
therefore has continued to measure the useful lives of the
plants as has been done in previous years under the pre-
vious regulatory system, considering this to be the most
realistic estimate.
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 hold-
er, in exchange for payment of a price to be determined
in negotiations between the departing concession holder
and the grantor agency, taking due account of the follow-
ing 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 Decem-
ber 11, 1933), the revalued cost less government capital
grants, also revalued, received by the concession hold-
er for the construction of such works, depreciated for
ordinary wear and tear;
• for other property, plant and equipment, the market
value, meaning replacement value, reduced by estimat-
ed 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 hydro-
electric concession, the practical application of these
principles 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 conces-
sions (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 en-
able 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 52 “Assets and liabilities mea-
sured at fair value”.
In accordance with IFRS 13, the Group includes a mea-
surement 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
284 Integrated Annual Report 2023
of financial instruments for the corresponding amount of
counterparty risk, using the method discussed in note 52
“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.
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 oth-
er 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 es-
timation that are considered include mortality and retire-
ment rates as well as assumptions concerning future devel-
opments in discount rates, the rate of wage increases, 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 expenses.
For more details on the main actuarial assumptions adopt-
ed, please see note 39 “Employee benefits”.
Provisions for risks and charges
For more details on provisions for risks and charges, please
see note 40 “Provisions for risks and charges”.
Note 57 “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
activities that could give rise to significant liabilities. It is
not always 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 advi-
sors assisting the Group, about whether to classify them
as contingent 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 operator
with regard to future interventions that will have to be per-
formed 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 fu-
ture cost is a critical process, given that the costs will 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 reviewed each year, taking account of devel-
opments in storage, decommissioning and site restoration
technology, as well as the ongoing evolution of the leg-
islative framework governing health and environmental
protection.
Subsequently, the value of the obligation is adjusted to re-
flect the passage of time and any changes in estimates.
For more information, please see note 40 “Provisions for
risks and charges”.
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 righ-
tofuse 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.
Notes to the consolidated financial statements
285
One of the most significant judgments for the Group is
determining this IBR necessary to calculate the present
value of the lease payments required to be paid to the les-
sor. The Group approach to determine 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 di-
rectly linked to the type of the underlying asset, rath-
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
48 “Financial instruments by category”.
Income tax
Recovery of deferred tax assets
At December 31, 2023, 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 rec-
ognized tax assets in future years, the consequent adjust-
ment 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 recognized
are reassessed at each reporting date in order to verify the
conditions for their recognition.
For more details on deferred tax assets recognized or not
recognized, please see note 25 “Deferred tax assets and
liabilities”.
Management judgment
Identification of operating segments
In accordance with the requirements of IFRS 8, the Group’s
operating segments are represented by the business lines,
identified as components:
• that engage in business activities from which they may
earn revenue and incur expenses (including revenue
and expenses relating to transactions with other com-
ponents of the same entity);
• whose operating results are regularly reviewed by man-
agement to make decisions about resources to be allo-
cated to the segment and assess their performance; and
• for which discrete financial information is available.
Identification of cash generating units (CGUs)
For impairment testing, if the recoverable amount cannot
be determined for an individual asset, the Group identifies
the smallest group of assets that generate largely inde-
pendent 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.). The assets of each CGU are
also identified on the basis of the manner in which man-
agement manages and monitors those assets, as well as
the evidence that the cash inflows of the group of assets
are largely independent of those associated with other as-
sets (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. In particular, the number and scope of the
CGUs are updated systematically to reflect the impact of
new business combinations and reorganizations carried
out by the Group.
The CGUs identified by management to which the goodwill
recognized in these consolidated financial statements has
been allocated are reported in note 24 “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
286 Integrated Annual Report 2023
concerned, the Group has taken account of its commit-
ment under the Paris Agreement. For more information,
please see note 19 “Property, plant and equipment”.
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 abili-
ty to affect those returns through its power over the in-
vestee. Power is defined as the current ability to direct the
relevant activities of the investee based on existing sub-
stantive 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 an-
alyzes all facts and circumstances including any agree-
ments with other investors, rights arising from other con-
tractual arrangements and potential voting rights (call
options, warrants, put options granted to non-controlling
shareholders, 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 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 existed.
Furthermore, even if it holds more than half of the voting
rights in an entity, the Group considers all the relevant
facts and circumstances in assessing whether it controls
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.
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 ap-
ply judgment and assess its rights and obligations arising
from the arrangement. For this purpose, the management
considers the structure and legal form of the arrange-
ment, the terms agreed by the parties in the contractual
arrangement and, when relevant, other facts and circum-
stances.
Following that analysis, the Group has considered its in-
terest 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 26 “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 ex-
ercise control or joint control over those policies. In gener-
al, 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 influ-
ence, management must apply judgment and consider all
facts and circumstances.
The Group re-assesses whether or not it has significant
influence if facts and circumstances indicate that there
are changes to one or more of the elements considered in
verifying the existence of significant influence.
For more information on the Group’s equity investments
in associates, please see note 26 “Equity-accounted in-
vestments”.
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-
Determination of non-current assets (or disposal groups)
held for sale and discontinued operations
An asset is classified as “held for sale” when its sale is
highly probable.
To determine whether a sale is highly probable, the Group
considers whether:
• management is committed to a plan to sell the asset
(or disposal group), and an active program to locate a
buyer and complete the plan has been initiated;
• the sale should be expected to qualify for recognition
as a completed sale within one year from the date of
Notes to the consolidated financial statements
287
classification, except where the delay is caused by
events or circumstances beyond the Group’s control
and there is sufficient evidence that the Group remains
committed to its plan to sell the asset;
• the actions required to complete the plan should in-
dicate that it is unlikely that significant changes to the
plan will be made or that the plan will be withdrawn.
In addition, an asset (or group of assets) shall be presented
as a discontinued operation when it is classified as held for
sale and:
• represents a separate major business line or geograph-
ical area of operations;
• is part of a single coordinated plan to dispose of a sep-
arate major business line or geographical area of op-
erations; or
• is a subsidiary acquired exclusively with a view to resale.
Application of “IFRIC 12 - Service Concession
Arrangements” to concessions
The Group, as operator, applies IFRIC 12 to “public-to-pri-
vate” service concession arrangements, under which a
public entity (the grantor) conveys to an operator the right
to manage the infrastructure used to provide services.
More specifically, management assesses whether “pub-
lic-to-private” service concession arrangements are with-
in the scope of IFRIC 12 on the basis of whether:
• 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
entitlement or otherwise – any significant residual in-
terest in the infrastructure at the end of the term of the
arrangement.
On the basis of that analysis, the provisions of IFRIC 12 are
applicable to the service concession arrangements of a
number of companies that operate primarily in Brazil.
Further details about service concession arrangements in
the scope of IFRIC 12 are provided in note 20 “Infrastruc-
ture within the scope of ‘IFRIC 12 - Service Concession
Arrangements’”.
Revenue from contracts with customers
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.
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 (i.e. whether
they are distinct or are a series of distinct goods or ser-
vices that are substantially the same and that have the
same pattern of transfer to the customer), and the nature
of the promise within the context of the contract. To this
end, it is necessary to evaluate all the facts and circum-
stances relating to the specific contract under the rele-
vant 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.
For each performance obligation, and in relation to the
type of transaction:
• revenue is recognized over time on the basis of the
progress towards complete satisfaction of the per-
formance obligation, as in the case of the provision
of services. The measurement of progress towards
complete satisfaction of a performance obligation is
carried out consistently for performance obligations
and similar circumstances using an “output” or “input”
method. In particular, the cost incurred method (cost-
to-cost method) is considered appropriate for mea-
suring progress except when a specific analysis of the
contract counsels the use of an alternative method. If it
should prove impossible to reasonably assess progress
towards satisfaction of the performance obligation, the
Group recognizes revenue only to the extent of the in-
curred costs that are considered recoverable;
• if, on the other hand, the performance obligation is sat-
isfied at a given moment, as in the case of the supply
of goods, revenue is recognized at the point in time in
which the customer obtains the control of the goods,
considering all relevant indicators.
The Group considers all relevant facts and circumstanc-
es in determining whether a contract includes variable
consideration (i.e. consideration that may vary or depends
upon the occurrence or non-occurrence of a future
event). In estimating variable consideration, the Group
uses the method that better predicts the consideration to
which it will be entitled, applying it consistently through-
out the contract and for similar contracts, also consider-
ing all available information, and updating such estimates
until the uncertainly is resolved. The Group includes the
estimated variable consideration in the transaction price
only to the extent that it is highly probable that a signifi-
cant reversal in the cumulative revenue recognized will not
occur when the uncertainty is resolved.
The Group considers that it is an agent in some contracts
in which it is not primarily responsible for fulfilling the
contract and therefore it does not control goods or ser-
vices 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.
288 Integrated Annual Report 2023
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.
The Group assesses recoverability of the incremental
costs of obtaining a contract either on a contract-by-con-
tract basis, or for a group of contracts if those costs are
associated 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 renewals,
amendments and follow-on contracts with the same cus-
tomer.
The Group amortizes such costs over the average customer
term. In order to determine this expected period of benefit
from the contract, the Group considers its past experience
(e.g., “churn rate”), the predictive evidence from similar con-
tracts and available information about the market.
Power Purchase Agreements
Power Purchase Agreements (PPAs), which provide for the
physical delivery of energy and which do not comply with
the requirements of IFRS 10 for the existence of control
or joint control over a company or an asset, and IFRS 16
for the recognition of a lease, but which comply with the
definition of a derivative under IFRS 9, are accounted for
on the basis of the own use exemption when the relevant
conditions are met.
For more information on Virtual PPAs complying with the
definition of derivative pursuant to IFRS 9, please see note
51 “Derivatives and hedge accounting”.
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 oth-
er comprehensive income and at fair value through profit
or loss, management assesses both the contractual cash
flow characteristics of the instrument and the business
model for managing financial assets in order to generate
cash flows.
In order to evaluate the contractual cash flow characteristics
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, performing spe-
cific assessment on the contractual clauses of the financial
instruments, as well as quantitative analysis, if required.
The business model determines whether cash flows will re-
sult from collecting contractual cash flows, selling the finan-
cial assets, or both.
For more details, please see note 48 “Financial instruments
by category”.
Hedge accounting
Hedge accounting is applied to derivatives in order to re-
flect into the financial statements the effect of the Group’s
risk management 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 chang-
es in fair value and the hedge ratio, as well as the mea-
surement of the ineffectiveness, is evaluated through a
qualitative assessment or a quantitative computation, de-
pending on the specific facts and circumstances and on
the characteristics of the hedged items and the hedging
instruments.
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.
For additional details on the key assumptions about effec-
tiveness assessment and ineffectiveness measurement,
please see note 51.1 “Derivatives designated as hedging
instruments”.
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 into the
lease arrangements;
• 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
289
the underlying asset;
• 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
assumptions about this rate are provided in the para-
graph “Use of estimates”.
For more information on leases, please see note 21 “Leas-
es”.
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 likely
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 17
“Income taxes”.
2.2 Material accounting policies
Related parties
Pursuant to IAS 24, related parties are mainly those that
share the same controlling entity with Enel SpA, the com-
panies that directly or indirectly are controlled by Enel
SpA, the associates or joint ventures (including their sub-
sidiaries) of Enel SpA, or the associates or joint ventures
(including their subsidiaries) of any Group company. Relat-
ed parties also include entities that operate post-employ-
ment benefit plans for employees of Enel SpA or its as-
sociates (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 manage-
ment personnel, and their immediate family, of Enel SpA
and its subsidiaries. Key management personnel comprise
management personnel who have the power and direct or
indirect responsibility for the planning, management and
control of the activities of the Company. They include di-
rectors (whether executive or not).
Subsidiaries
Pursuant to IFRS 10, subsidiaries are all entities over which
the Group has control. For more information on the defi-
nition of control, please see section “Determination of the
existence of control” in note 2.1 “Use of estimates and
management judgment”.
The financial statements of subsidiaries used to prepare
the consolidated financial statements were prepared at
December 31, 2023 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.
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.
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 item, 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.
Investments in associates and joint ventures
In the consolidated financial statements, investments in as-
sociated companies and joint arrangements are measured
in accordance with the requirements established by “IAS 28
- Investments in Associates and Joint Ventures” and “IFRS
11 - Joint Arrangements”.
In this respect, an associate is an entity over which the
Group has significant influence, while a joint venture is a
joint arrangement over which the Group exercises joint
control and has rights to the net assets of the arrangement.
290 Integrated Annual Report 2023
The Group’s investments in associates and joint ventures
are accounted for using the equity method, under which
these investments are initially recognized at cost and any
goodwill arising from the difference between the cost of
the investment and the Group’s share of the net fair val-
ue of the investee’s identifiable assets and liabilities at the
acquisition date is included in the carrying amount of the
investment.
After the acquisition date, their carrying amount is adjust-
ed to recognize changes in the Group’s share of profit or
loss of the associate or joint venture in Group profit or loss.
Adjustments to the carrying amount may also be neces-
sary following changes in the Group’s share in the asso-
ciate 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 com-
prehensive income.
Distributions received from joint ventures and associates
reduce 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 ven-
ture.
The financial statements of the associates or joint ventures
are prepared for the same reporting period as 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 signifi-
cant influence or joint control, the Group continues to ap-
ply the equity method and the share of the gain or loss
that had previously been recognized in other comprehen-
sive income relating to that reduction is accounted for as
if the Group had directly disposed of the related assets or
liabilities.
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 combina-
tion achieved in stages, with the remeasurement of the
interest it held previously in the joint operation at its fair
value at each 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 26 “Equity-ac-
counted investments”.
Translation of foreign currency items
Pursuant to “IAS 21 - The Effects of Changes in Foreign
Exchange Rates“, transactions in currencies other than the
functional currency are initially recognized at the spot ex-
change 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 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 ini-
tial recognition 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.
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.
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.
Pursuant to IAS 21, in order to prepare the consolidated
financial statements, the financial statements of consol-
idated companies with functional currencies other than
Notes to the consolidated financial statements
291
the presentation currency used in the consolidated finan-
cial statements are translated into euros by applying the
closing exchange rate to the assets and liabilities, includ-
ing goodwill and consolidation adjustments, and the aver-
age 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 - Financial Reporting in Hyperinflationary Economies“
before applying the specific conversion method set out
below.
In order to consider the impact of hyperinflation on the lo-
cal currency exchange rate, the financial position and per-
formance (i.e. assets, liabilities, equity items, revenue and
expenses) of a company of the Group 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 financial statements which are not adjust-
ed for subsequent changes in the price level or subse-
quent changes in exchange rates.
Goodwill
Goodwill represents the future economic benefits arising
from other assets acquired in a business combination that
are not individually identified and separately recognized
and is recognized in the consolidated financial statements
as at the date of acquisition of control of the business.
To this end, the Group recognizes business combinations
using:
• the “purchase method”, for all business combinations
initiated before January 1, 2010 and completed within
that financial year on the basis of IFRS 3 (2004), where
the purchase cost is equal to the fair value at the date
of the exchange of the assets acquired and the liabil-
ities incurred or assumed, plus costs directly attrib-
utable to the acquisition. This cost was allocated by
recognizing the assets, liabilities and identifiable con-
tingent 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. The carrying amount of non-controlling inter-
ests was determined in proportion to the interest held
by non-controlling shareholders in the net assets. In the
case of business combinations achieved in stages, at
the date of acquisition any adjustment to the fair value
of the net assets acquired 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;
• the “acquisition method”, for all business combinations
carried out as from January 1, 2010 that are recognized
on the basis of IFRS 3 (2008), which is referred to as
IFRS 3 (Revised) hereafter, where the purchase cost (the
consideration transferred) is equal to the fair value at the
purchase date of the assets acquired and the liabilities
incurred or assumed, as well as any equity instruments
issued by the purchaser. The purchase cost includes
the fair value of any asset or liability resulting from a
contingent consideration arrangement. The consider-
ation transferred is allocated by recognizing the assets,
liabilities and identifiable contingent liabilities of the ac-
quired company at their fair values as at the acquisition
date. In this regard, goodwill is defined as the excess
of the consideration transferred, measured at fair value
as at the acquisition date, the amount of any non-con-
trolling 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 identifiable assets acquired
and the liabilities incurred or assumed measured at fair
value. The carrying amount of non-controlling interests
is determined either in proportion to the interest held
by non-controlling shareholders in the net identifiable
assets of the acquiree or at their fair value as at the
acquisition date.
IFRS 3 (Revised) requires, among other things, the following:
• costs directly attributable to the acquisition are recog-
nized through profit or loss;
• in the case of business combinations achieved in stag-
es, at the date of acquisition of control the previously
held equity interest in the acquiree is remeasured to
fair value and any positive or negative difference is rec-
ognized in profit or loss;
• any contingent consideration is recognized at fair val-
ue at the acquisition date. Subsequent changes to the
fair value 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 contingent consideration is not within the scope of
IFRS 9, it is measured in accordance with the appro-
priate IFRS-IAS. Contingent consideration that is clas-
sified 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
liabilities can only be calculated on a provisional basis,
the business combination is recognized using such
provisional values. Any adjustments resulting from the
292 Integrated Annual Report 2023
completion of the measurement process are recog-
nized within 12 months of the date of acquisition, re-
stating comparative figures.
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.
For the purpose of impairment testing, goodwill is allocat-
ed, from the acquisition date, to each CGU or group of
CGUs that is expected to benefit from the synergies of the
combination.
For more information, please see the section “Impairment
of non-financial assets” in note 2.1 “Use of estimates and
management judgment”.
Goodwill relating to equity investments in associates and
joint venture is included in their carrying amount.
Fair value measurement
For all fair value measurements and disclosures of fair
value, 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 transac-
tion to sell an asset or transfer a liability takes place in the
principal 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 mini-
mizes the amount that would be paid to transfer the lia-
bility.
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 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 avail-
able, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
Property, plant and equipment
Pursuant to IAS 16, property, plant and equipment is stated
at cost, net of accumulated depreciation and accumulat-
ed impairment losses, if any. Such cost includes expenses
directly attributable 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.
For more information on changes in the estimate of these
costs, the passage of time and the discount rate, please
see note 2.1 “Use of estimates and management judge-
ment”.
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 asso-
ciated 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 transition
date or in previous periods are recognized at their fair val-
ue, 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
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-
Notes to the consolidated financial statements
293
preciation criteria shall be applied prospectively. Depreci-
ation begins when the asset is available for use. For more
information on estimating useful life, please see note 2.1
“Use of estimates and management judgment”.
Civil buildings
10-60 years
Buildings and civil works incorporated in plants
10-100 years
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:
10-65 years
10-65 years
10-100 years
20-40 years
10-40 years
5-40 years
60 years
50 years
20 years
10-50 years
10 years
20-40 years
20-30 years
20-30 years
15-30 years
- mechanical and electrical machinery
15-30 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
Charging stations
10-20 years
20 years
10-60 years
20-55 years
10-60 years
10-50 years
10-50 years
5-40 years
10 years
15 years
7-15 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
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 conces-
sion 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 operating
condition. The terms of the concessions extend up to 2078.
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 Argentina in 2087,
in Brazil in 2047, in Costa Rica in 2031, in Panama and in
Guatemala in 2062.
Service concession arrangements
When acting as operator under “public-to-private” ser-
vice concession arrangements, the Group constructs/up-
grades infrastructure used to provide a public service and/
or operates and maintains that infrastructure for the years
of the concession, in accordance with the terms specified
in the contract.
In these circumstances, the Group does not account for
the infrastructure operated under a service concession
294 Integrated Annual Report 2023
arrangement within the scope of IFRIC 12 as property,
plant and equipment, recognizing and measuring 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; and/or
• an intangible asset, if the Group receives the right (a
license) to charge users of the public service provided
and thus does not have an unconditional right to re-
ceive cash because the amounts are contingent on the
extent that the public uses the service.
If the Group (as operator) has a contractual right to re-
ceive an intangible asset, borrowing costs are capitalized
using the criteria specified in note 19 “Property, plant and
equipment”.
However, for construction/upgrade services, both types
of consideration are classified as a contract asset during
the construction/upgrade period.
For more details about such consideration, please see
note 11.a “Revenue from sales and services”.
Conversely, where the service concession arrangement
provides for the infrastructure used for to operate the
concessions themselves do not comply with the require-
ments established by IFRIC 12 and, in particular, are owned
and available to the operator or have an indefinite expiry,
the carrying amount of the assets attributable to these
concessions is recognized under “Property, plant and
equipment” and accounted for in accordance with IAS 16.
Information on the main characteristics of the Group’s
service concession arrangements can be found in note
20 “Infrastructure within the scope of ‘IFRIC 12 - Service
Concession Arrangements’”.
Leases
At inception of a contract, the Group assesses whether a
contract is, or contains, a lease applying the definition of a
lease under 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.
When the Group acts as a lessee, it recognizes a right-of-
use asset and a lease liability at the commencement date
of the lease (i.e. the date the underlying asset is available
for use).
The right-of-use asset is initially measured at cost, which
includes the initial amount of lease liability adjusted for any
lease payments made at or before the commencement
date less any lease incentives received, plus any initial di-
rect costs incurred and an estimate of costs to retire and
remove the underlying asset and to restore 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.
Buildings
Ground rights of energy plants
Vehicles and other means of transport
Average residual life
(years)
8
32
4
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 ex-
ercise 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 im-
pairment testing and adjusted for any remeasurement of
lease liabilities.
The lease liability is initially measured at the present value of
lease payments to be made over the lease term, discounted
using 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 mea-
sured 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.
Intangible assets
Pursuant to IAS 38, intangible assets are identifiable as-
sets without physical substance controlled by the Group,
when it is probable that the use of such assets will gener-
ate future economic benefits and the related cost can be
reliably determined.
They are measured at purchase or internal development
cost for internally generated assets and are recognized
only when the Group can demonstrate the technical fea-
sibility 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.
The cost includes any directly attributable expenses nec-
essary to make the assets ready for their intended use.
Notes to the consolidated financial statements
295
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 estimat-
ing useful life, please see note 2.1 “Use of estimates and
management judgment” and note 23 “Intangible assets”.
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.
Development expenditure:
- internally generated
- acquired
Industrial patents and intellectual property rights:
- internally generated
- acquired
Concessions, licenses, trademarks and similar rights:
- internally generated
- acquired
Other:
- internally generated
- acquired
5 years
3-26 years
3-10 years
3-10 years
20 years
10-18 years
2-28 years
3-15 years
The Group presents costs to obtain a contract with a cus-
tomer capitalized in accordance with IFRS 15 as intangible
assets, 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 obtained;
• the Group expects to recover them, through reim-
bursements (direct recoverability) or the margin (indi-
rect recoverability).
In particular, the Group generally capitalizes trade fees and
commissions paid to agents for such contracts if the capi-
talization 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
undergo impairment testing to identify any impairment
losses to the extent that the carrying amount of the asset
recognized 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.
Impairment of non-financial assets
Pursuant to ”IAS 36 - Impairment of assets”, at each re-
porting date, property, plant and equipment, investment
property recognized at cost, intangible assets, right-of-
use assets, goodwill and equity investments in associates/
joint ventures are reviewed to determine whether there is
evidence of impairment (using internal and external sourc-
es of information).
CGUs to which goodwill is allocated, intangible assets with
an indefinite useful life and intangible assets not yet avail-
able for use 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 do 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-
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 lon-
ger apply.
Inventories
Pursuant to IAS 2, inventories are measured at the low-
er of cost and net realizable value except for inventories
involved in trading activities, which are measured at fair
value with recognition through profit or loss. Cost is de-
termined on the basis of average weighted cost, which in-
296 Integrated Annual Report 2023
cludes related ancillary charges. Net estimated realizable
value is the estimated normal selling price net of estimat-
ed 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 deter-
mined on the basis of the amount established in the con-
tract of sale.
Inventories include environmental certificates (for exam-
ple, green certificates, energy efficiency certificates and
European CO2 emissions allowances and guarantees of
origin and renewable energy certificates) not used for
compliance in the reporting period. These inventories are
allocated to different portfolios, distinguishing between
those held for trading or non-trading purposes. For more
details on inventories, please see note 58 “Environmental
programs”.
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 re-
covery of the cost incurred.
Financial instruments
Financial instruments are recognized and measured in ac-
cordance with “IAS 32 - Financial Instruments: Presenta-
tion“ and “IFRS 9 - Financial Instruments“.
A financial asset or liability is recognized in the consolidated
financial statements when, and only when, the Group be-
comes party to the contractual provision of the instrument
(i.e. the trade date).
Trade receivables arising from contracts with customers, in
the scope of IFRS 15, are initially measured at their trans-
action price (as defined in IFRS 15) if such receivables 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 mea-
sured at fair value through profit or loss, transaction costs.
Financial assets are classified, at initial recognition, as fi-
nancial assets at amortized cost, at fair value through oth-
er comprehensive income and at fair value through profit
or loss, on the basis of both:
• the Group’s business model for managing financial as-
sets, that is the way in which the Group manages its
financial assets in order to generate cash flows (i.e. col-
lecting contractual cash flows, selling the financial as-
sets, or both); and
• the contractual cash flow characteristics of the instru-
ment, to determine whether the instrument gives rise
to cash flows that are solely payments of principal and
interest based on the SPPI test.
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
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 re-
classified to profit or loss. The Group may transfer the cu-
mulative gain or loss within equity.
Equity instruments designated at fair value through OCI
are not subject to impairment testing.
Notes to the consolidated financial statements
297
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:
• 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
held principally for the purpose of selling or repurchas-
ing in the short term (i.e. securities, financial invest-
ments in funds, etc.);
• derivatives, including separated embedded derivatives,
held for trading or not designated as effective hedging
instruments;
• financial assets that qualify as contingent consider-
ation.
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 equity investments which the
Group had not irrevocably elected to classify at fair value
through OCI. Dividends on such investments are also rec-
ognized as other income in the income statement when
the right of payment has been established.
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.
The impairment model adopted by the Group in compli-
ance with IFRS 9 is based on the determination of expect-
ed credit losses (ECL) using a forward-looking approach.
For trade receivables, contract assets and lease receiv-
ables, 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 recog-
nition.
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.
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 48 “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 period-end.
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 val-
ue adjusted for directly attributable transaction costs. Fi-
nancial liabilities are subsequently measured at amortized
cost using the effective interest rate method. The effective
interest rate is the rate that exactly discounts the estimat-
ed future cash payments or receipts over the expected
life of the financial instrument or a shorter period, where
appropriate, 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 mainly
include:
• financial liabilities held for trading incurred for the pur-
pose of repurchasing in the near term;
• derivative financial instruments entered into by the
Group that are not designated as hedging instruments
in hedge relationships as defined by IFRS 9;
• financial liabilities that qualify as contingent consider-
ation.
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 con-
tractual obligation to pay such cash flows to one or more
beneficiaries under a contract that meets the require-
ments 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.
298 Integrated Annual Report 2023
On derecognition of a financial asset, the Group recog-
nizes the difference between the carrying amount (mea-
sured at the date of derecognition) and the consideration
received through profit or loss.
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 anoth-
er from the same lender on substantially different terms,
or the terms of an existing liability are substantially mod-
ified, 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
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 profit
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 current
on the basis of their maturity date and the Group intention
to hold the financial instrument till maturity or not.
For more details on derivatives and hedge accounting,
please see note 51 “Derivatives and hedge accounting”.
Embedded derivatives
An embedded derivative is a derivative included in a “com-
bined” 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 com-
bined contract’s cash flows. Embedded derivatives are
separated from the host contract and accounted for as
derivatives when:
• the host contract is not a financial instrument mea-
sured 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 embed-
ded derivative would meet the definition of a derivative.
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 that do not represent financial instruments to
be measured at fair value are analyzed in order to identify
any embedded derivatives, which are to be separated 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.
The main Group contracts that may contain embedded de-
rivatives are contracts to buy or sell energy commodities.
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 expected
purchase, sale or usage requirements are out of the scope
of IFRS 9 and then recognized as executory contracts, in
accordance with 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) that do not qualify for the
own use exemption are recognized as derivatives mea-
sured at fair value from the trade date 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.
Trading contracts are valued at fair value through profit or
loss; the results of the measurement of changes in the fair
value of contracts still outstanding at the reporting date
are recognized on a net basis under the item “Net results
from commodity contracts”, while at the settlement date:
• the results of the measurement of changes in the fair
value of closed contracts for the sale of energy com-
modities as well as the related revenue, together with
the impact on profit or loss of the derecognition of the
derivative, are recognized under “Revenue from sales
and services”;
• the results of the measurement of changes in the fair
value of 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 materials”.
Contracts to buy or sell non-financial items falling with-
in the scope of application of IFRS 9 can also be subse-
quently designated as hedging instruments if they satisfy
the requirements for hedge accounting.
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”.
Notes to the consolidated financial statements
299
Offsetting of financial assets and liabilities
The Group offsets financial assets and liabilities when it:
• currently has a legally enforceable right to set off the
recognized amounts; and
• intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.
Hyperinflation
Pursuant to IAS 29, in a hyperinflationary economy, the
Group adjusts non-monetary items, equity and items de-
riving from index-linked contracts up to the limit of recov-
erable amount, using a price index that reflects changes in
general purchasing power.
The effects of initial application are recognized in equity
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.
These provisions are applied to the Group’s transactions in
Argentina, whose economy has been declared hyperinfla-
tionary since July 1, 2018.
Non-current assets (or disposal groups)
classified as held for sale and discontinued
operations
Pursuant to IFRS 5, non-current assets (or disposal groups)
are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction, rather
than through continuing use.
This classification criterion
is applicable only when
non-current assets (or disposal groups) are available in
their present condition for immediate sale and the sale is
highly probable.
For more details on the requirements for determining
whether a sale is highly probable, please see note 2.1 “Use
of estimates and management judgment”.
If the Group is committed to a sale program involving loss
of control of a subsidiary and the requirements provid-
ed for under IFRS 5 are met, all the assets and liabilities
of that subsidiary are classified as held for sale when the
classification criteria are met, regardless of whether the
Group will retain a non-controlling interest in its former
subsidiary after the sale.
The Group applies these classification criteria as envis-
aged in IFRS 5 to an investment, or a portion of an invest-
ment, in an associate or a joint venture. Any retained por-
tion 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 consoli-
dated statement of financial position.
The amounts presented for non-current assets or for the
assets and liabilities of disposal groups classified as held
for sale are not reclassified or re-presented for prior peri-
ods presented.
Immediately before the initial classification of non-current
assets (or disposal groups) as held for sale, the carrying
amounts of such assets (or disposal groups) are measured
in accordance with the accounting standard applicable to
those assets or liabilities. Non-current assets (or dispos-
al groups) classified as held for sale are measured at the
lower of their carrying amount and fair value less costs to
sell. Impairment losses for any initial or subsequent write-
down of the assets (or disposal groups) to fair value less
costs to sell and gains for their reversals are recognized in
profit or loss from continuing operations.
Non-current assets are not depreciated (or amortized)
while they are classified as held for sale or while they are
part of a disposal group classified as held for sale.
If a component of the Group is a discontinued operation,
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 discon-
tinued 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
In the absence of specific IAS/IFRS rules, the accounting
treatment adopted by the Group complies with the gen-
eral rules included in the body of applicable IAS/IFRS ac-
counting standards and with international best practice.
In particular, the Group accounting treatment of envi-
ronmental certificates reflects the business model of the
entities involved and, therefore, the different features of
the business conducted by these entities, distinguishing
between those that generate electricity from renewable
sources, obligated parties, traders and other entities that
operate in the energy services sector even though they
are not obligated parties.
Further details on the application of this accounting model
are provided in note 58 “Environmental programs”.
300 Integrated Annual Report 2023
Employee benefits
Post-employment and other long-term benefits
Pursuant to IAS 19, the Group determines separately for
each plan liabilities related to employee benefits paid upon
or after ceasing employment or other long-term benefits
accrued during the employment period. The Group uses
actuarial assumptions to estimate the amount of the fu-
ture benefits that employees have accrued at the report-
ing date (using the projected unit credit method) and an
appropriate discount rate to determine the present value
of those plans.
The liability, net of any plan assets, is recognized on an
accrual basis over the vesting period of the related rights.
These appraisals are performed by independent actuar-
ies.
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 Group recognizes the cumulative actuarial gains and
losses from the actuarial measurement of the liabilities,
the return on the plan assets (net of the associated in-
terest income) and the effect of the asset ceiling (net of
the associated interest) in other comprehensive income
when they occur. For other long-term benefits, the re-
lated actuarial gains and losses are recognized through
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 ob-
ligation to pay further contributions if the fund does not
hold sufficient assets to pay all employee benefits relating
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
Pursuant to IAS 19, liabilities for benefits due to employees
for the early termination of employee service arise out of
the Group’s decision to terminate an employee’s employ-
ment before the normal retirement date or an employee’s
decision to accept an offer of benefits in exchange for the
termination of employment.
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.
Share-based payments
The Group undertakes share-based payment transac-
tions settled with equity instruments as part of the remu-
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 (settled with equity instruments) and a
monetary component (paid in cash), which will accrue if
specific conditions are met.
Pursuant to IFRS 2, the Group classifies the monetary
component as a cash-settled transaction if it is based on
the price (or value) of the equity instruments of the com-
pany that issued the plan or, in other cases, as another
long-term employee benefit.
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 53 “Share-based payments”.
In particular for the equity component, the Group recog-
nizes the services rendered by employees as personnel
expenses over the period in which the conditions for re-
maining in service and for achieving certain results must
be satisfied (vesting period) and indirectly estimates their
value, and the corresponding increase in a specific equity
item, on the basis of the fair value of the equity instru-
ments (i.e. the issuer shares) at the grant date.
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 or non-vesting con-
ditions will be satisfied at the end of the vesting period.
Conversely, if the incentive based on equity instruments is
paid in cash, the Group recognizes the services rendered
by employees as personnel expenses over the vesting
period and a corresponding liability measured at the fair
value of the liability incurred. Subsequently, and until its
extinction, the liability is remeasured at fair value at each
reporting date, considering the best possible estimate of
the incentive that will vest, with changes in fair value rec-
ognized under personnel expenses.
Provisions for risks and charges
Pursuant to IAS 37, provisions are recognized where there
is a legal or constructive obligation as a result of a past
event at the end of the reporting period, the settlement
of which is expected to result in an outflow of resourc-
es whose amount can be reliably estimated. Where the
Notes to the consolidated financial statements
301
impact of the time value of money is material, the accru-
als are determined by discounting expected future cash
flows using a pre-tax discount rate that reflects the cur-
rent market assessment of the time value of money and, if
applicable, the risks specific to the liability.
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 relat-
ed 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 nu-
clear waste and other radioactive materials, the provision 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 man-
ner in which the business is conducted. Such a liability is
recognized when a constructive obligation is established,
i.e. when the Group has approved a detailed formal restruc-
turing plan and has started to implement the plan or has
announced its main features to those affected by it.
Provisions do not include liabilities in respect of uncertain
income tax treatments that are recognized as tax liabilities.
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 element
and a service element and the Group cannot reasonably
account for them separately, then it accounts for both of
the warranties together as a single performance obliga-
tion.
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 at an amount that reflects the consideration at
which the Group expects to be entitled in exchange for
those goods or services, using the five-step model envis-
aged by IFRS 15:
• identify the contract with the customer;
• identify the performance obligations in the contract,
that is, all goods or services promised in the contract;
• determine the transaction price at inception of the
contract considering any variable considerations, non-
cash consideration received from a customer or pay-
able to the customer, significant financing components;
• allocate the transaction price, at contract inception, to
each separate performance obligation;
• recognize revenue, when (or as) each performance obli-
gation is satisfied by transferring the promised good or
service to the customer.
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
302 Integrated Annual Report 2023
and management judgment” and in note 11.a “Revenue
from sales and services”.
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 accrual
basis in accordance with the substance of the relevant
lease agreement.
IAS 20, government grants,
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.
Pursuant to
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 attach-
ing to them as set by the government, government agen-
cies and similar bodies whether local, national or interna-
tional.
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 mea-
sured 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.
A government grant received to compensate for costs or
losses already incurred, or for the purpose of providing
immediate financial support to the Group without related
future costs, is recognized as income in the year in which
it becomes enforceable.
When government grants are received to purchase, build
or otherwise acquire non-current assets (for example, an
item of property, plant and equipment or an intangible as-
set), they are deducted from the carrying amount of the
asset and are recognized in profit or loss over the depre-
ciable/amortizable life of the asset as a reduction in the
depreciation/amortization charge. If there is insufficient
information to enable adequate attribution to the fixed
assets to which they refer, capital grants 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. If a government grant is made in a period sub-
sequent to that in which the depreciation of the assets
began, the portion of the grant corresponding to the de-
preciation recognized in previous periods is recognized
directly in profit or loss.
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.
Net results from commodity contracts
The net results from commodity contracts include:
• the net income or expense from commodity deriv-
atives, including derivatives designated as cash flow
hedges and derivatives measured at fair value through
profit or loss, whether settled or outstanding at the re-
porting date; and
• the net gain/(loss) from the measurement through prof-
it or loss of energy commodity contracts with physical
settlement still outstanding at the reporting date.
Dividends
Pursuant to “IFRS 9 - Financial Instruments“, dividends are
recognized when the unconditional right to receive pay-
ment 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
IAS 12 specifies the requirements for the recognition of
current and deferred tax assets and liabilities. The uncer-
tainty in the determination of tax liabilities is defined in
accordance with the provisions of “IFRIC 23 - Uncertainty
over Income Tax Treatments“.
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 enact-
ed 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 rec-
ognized outside profit or loss that are recognized in equity.
Notes to the consolidated financial statements
303
Deferred tax
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: (i)
from the initial recognition of goodwill; or (ii) from the
initial recognition of an asset or a liability in a transaction
which is not a business combination and, at the time of
the transaction, affects neither accounting profit nor tax-
able profit (tax loss); and does not give rise to equal taxable
and deductible temporary differences; or (iii) in respect
of taxable temporary differences associated with invest-
ments in subsidiaries, associates and joint ventures, when
the Group can control the timing of the reversal of the
temporary differences and it is probable that the tempo-
rary 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 recog-
nizes and measures its current/deferred tax asset or liabil-
ities 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 in-
come tax purposes, the Group reflects the uncertainty in
the manner that best predicts the resolution of the uncer-
tain tax treatment.
For more information on uncertainty over tax treatments,
please see note 2.1 “Use of estimates and management
judgment”.
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.
304 Integrated Annual Report 2023
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, 2023.
• “Amendments to IAS 1 and IFRS Practice Statement 2
– Disclosure of Accounting Policies”, issued in February
2021. The amendments are intended to provide support
in deciding which policies to disclose. In this regard:
– the amendments to “IAS 1 - Presentation of Finan-
cial Statements” require disclosures of “material”
accounting policies rather than “significant” policies;
– the amendments to “IFRS Practice Statement 2 -
Making Materiality Judgements” are intended to pro-
vide guidance on how to apply the concept of mate-
riality to accounting policy disclosures.
In the absence of an IFRS definition of “significant” in
the context of disclosures on accounting policies, the
term has been replaced with “material”. The definition
of material was modified in October 2018, and aligned
with the IFRS and the Conceptual Framework and,
therefore, is widely understood by primary users of fi-
nancial statements. In accordance with IAS 1, informa-
tion on accounting policies is material if, either individ-
ually or in combination with other information, it could
reasonably be expected to influence decisions that the
primary users of the financial statements make on the
basis of such financial statements. When assessing the
materiality of the disclosures on accounting policies, it
is appropriate to consider both the magnitude of the
transactions, other events or conditions, and their na-
ture. However, although a transaction, other event or
condition to which the disclosures on accounting poli-
cies refer may be material, this does not imply that the
corresponding information is material for the purposes
of the financial statements. In this context, the amend-
ments to the IFRS Practice Statement 2 seek to provide
guidance on how to determine whether disclosure of
an accounting policy is material for financial statement
purposes. These amendments aim to: (i) clarify that
materiality judgments about disclosures of accounting
policies should follow the same guidance in materiality
judgments about other information, therefore consid-
ering both qualitative and quantitative factors; (ii) un-
derscore the importance of providing information on
accounting policies that is specific to the Group; and (iii)
provide examples of situations where generic or stan-
dardized information, although summarizing or dupli-
cating the requirements of the IFRS, can be considered
disclosure of material accounting policies.
The disclosures on accounting policies have been re-
vised in line with the requirements established by the
amendments and have been updated in note 2.2 “Ma-
terial accounting policies”.
• “Amendments to IAS 8 – Definition of Accounting Es-
timates”, issued in February 2021. The amendments
clarify how companies should distinguish changes in
accounting policies from changes in accounting es-
timates. The definition of changes in accounting esti-
mates has been replaced with a definition of account-
ing estimates as “monetary amounts in financial state-
ments that are subject to measurement uncertainty”. In
order to clarify the interaction between an accounting
policy and an accounting estimate, IAS 8 has been
amended to state that an accounting standard may re-
quire certain financial statement items to be measured
at monetary amounts that cannot be directly observed,
and therefore must be estimated (since they involve
uncertainty in the measurement). In such circumstanc-
es, accounting estimates are developed to achieve the
objective set out by the accounting policy, including
the use of judgments and assumptions based on the
latest available, reliable information. The amendments
explain how measurement techniques and inputs must
be used to develop accounting estimates and estab-
lish that measurement techniques include estimation
techniques. In order to provide greater guidance, the
amendments clarify that the effects on an accounting
estimate of a change in an input or a change in a mea-
surement technique are changes in accounting esti-
mates unless they result from the correction of prior
period errors. Changes in accounting estimates result-
ing from new information are not corrections of errors.
The application of the amendments did not have a
material impact on these consolidated financial state-
ments.
• “Amendments to IAS 12 - Income Taxes: Deferred Tax
related to Assets and Liabilities arising from a Single
Transaction”, issued in May 2021. The amendments
clarify that the exemption from initial recognition pro-
vided for by the standard no longer applies to transac-
tions that give rise to taxable and deductible temporary
differences of the same amount.
In general, the initial recognition exemption provided
for by IAS 12 prohibits the recognition of deferred as-
sets and liabilities in respect of the initial recognition
of assets or liabilities in a transaction that does not
constitute a business combination and affects neither
accounting profit nor taxable profit. As illustrated, the
amendments have narrowed the scope of the excep-
tion.
For transactions (e.g., leases and decommissioning li-
abilities) subject to the amendments, the related de-
ferred assets and liabilities shall be recognized from the
beginning of the first comparative period presented,
with any cumulative effect recognized as an adjustment
Notes to the consolidated financial statements
305
to retained earnings (or other components of equity)
as at that date. In this regard, the application of the
amendments did not produce a material impact on re-
tained earnings in the opening equity of the Enel Group
at January 1, 2022.
• “Amendments to IAS 12 – International Tax Reform –
Pillar II Model Rules”, issued in May 2023. The chang-
es were introduced in response to the Pillar II rules is-
sued by the OECD, the aim of which is to ensure that
large multinational enterprises pay a minimum level of
income tax, generated in a specific period, in each ju-
risdiction in which they operate. In general, these rules
require the application of a top-up tax that brings the
total amount of taxes paid in each jurisdiction in which
they operate to a minimum of 15%.
The changes introduced:
– a mandatory temporary exception to the accounting
for and disclosure of deferred tax assets and liabil-
ities arising from the implementation of the Pillar II
rules; and
– disclosure requirements to help users of the finan-
cial statements better understand an entity’s expo-
sure to income taxes arising from the rule.
In particular, for periods in which Pillar II legislation is
enacted but not yet in effect, the entity shall disclose
qualitative information (such as information regarding
how the entity is affected by Pillar II rules and the main
jurisdictions in which exposures might exist) and quan-
titative information (such as indicating the portion of
profits that could be subject to Pillar II income taxes and
4. Minimum tax
the average effective tax rate applicable to such profits;
or indicating how the entity’s average effective tax rate
would have changed if Pillar II legislation had been in
effect).
The Group has adopted the mandatory temporary ex-
ception to the recognition of deferred taxation, which
applies retrospectively. However, since as at December
31, 2022 no new rule for the application of the top-up
tax had yet been issued in any jurisdiction in which the
Group operates and no related deferred tax had been
recognized as of that date, retrospective application
has had no impact on the Group’s consolidated finan-
cial statements.
For more information on the disclosure requirements,
please see note 4 “Minimum tax“.
• “IFRS 17 – Insurance Contracts”, issued in May 2017. The
new standard was issued by the IASB to replace IFRS
4, defining the principles for the recognition, mea-
surement, presentation and disclosure of insurance
contracts, including reinsurance contracts issued and
held and investment contracts with discretionary par-
ticipation features. The standard applies to insurance
contracts compliant with the definition of IFRS 17, re-
gardless of the issuer, but includes various exceptions
and exemption options that allow certain types of con-
tracts that meet the definition of insurance contract to
be accounted for by applying another standard. Based
on the analysis performed, the new standard has had
no impact on the Group’s consolidated financial state-
ments.
The Pillar II - Global Anti-Base Erosion Model Rules (GloBE
Rules), which are intended to ensure that large multina-
tional enterprises pay a minimum level of income tax in
each jurisdiction in which they operate, have been enact-
ed or substantially enacted in certain jurisdictions in which
the Enel Group operates. In general, the rules envisage the
application of a “top-up” tax to the excess profit in a juris-
diction to bring the effective tax rate on that income up to
a minimum of 15%.
For this purpose, the Group has conducted an assessment
of its potential exposure to the top-up tax in such juris-
dictions, which found that there are a limited number of
circumstances in which the effective tax rate is below 15%.
On the basis of this assessment, the potential top-up tax
that the Enel Group will have to pay as the difference be-
tween the effective tax rates calculated per jurisdiction
based on the GloBE Rules and the minimum rate of 15%
will not have a significant impact.
In application of the provisions of the amendment of “IAS
12 - International Tax Reform – Pillar II Model Rules”, the
Group has applied the mandatory temporary exemption to
requirements regarding deferred taxes deriving from the
application of Pillar II. The Group will recognize the taxes
emerging from the application of the rules as current tax-
es when they are incurred (see note 25 “Deferred tax as-
sets and liabilities”).
306 Integrated Annual Report 2023
5. Argentina – Hyperinflationary economy:
impact of the application of IAS 29
As from July 1, 2018, the Argentine economy has been con-
sidered hyperinflationary based on the criteria established by
“IAS 29 – Financial Reporting in Hyperinflationary 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, 2023, and in accordance with
IAS 29, certain items of the statements of financial position of
the investees in Argentina have been remeasured by applying
the general consumer price index to historical data in order
to reflect changes in the purchasing power of the Argentine
peso at the reporting date for those companies.
Bearing in mind that the Enel Group acquired control of the
Argentine companies on June 25, 2009, the remeasurement
of the non-monetary financial statement figures was con-
ducted by applying the inflation indices starting from that
date. In addition to being already reflected in the opening
statement of financial position, the accounting effects of that
remeasurement also include changes during the period. More
specifically, the effect of the remeasurement of non-mone-
tary items, the equity items and the income statement items
recognized in 2023 was recognized in a specific line of the
income statement under financial income and expense. The
associated tax effect was recognized in taxes for the year.
In order to also take account of the impact of hyperinflation
on the exchange rate of the local currency, the income state-
ment balances expressed in the hyperinflationary currency
have been translated into the Group’s presentation curren-
cy (euro) applying, in accordance with IAS 21, the closing ex-
change rate rather than the average rate for the year in order
to adjust these amounts to present values.
The cumulative changes in the general price indices from De-
cember 31, 2018 until December 31, 2023 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
From January 1, 2022 to December 31, 2022
From January 1, 2023 to December 31, 2023
Cumulative change
in general consumer
price index
346.30%
54.46%
35.41%
49.73%
97.08%
222.01%
In 2023, the application of IAS 29 generated net financial in-
come (gross of tax) of €284 million.
The following tables report the effects of IAS 29 on the bal-
ance at December 31, 2023 and the impact of hyperinflation
on the main income statement items for 2023, differentiating
between that concerning the revaluation on the basis of the
general consumer price index and that due to the applica-
tion of the closing exchange rate rather than the average ex-
change rate for the period, in accordance with the provisions
of IAS 21 for hyperinflationary economies.
Millions of euro
Total assets
Total liabilities
Equity
Cumulative
hyperinflation effect
at Dec. 31, 2022
Hyperinflation effect
for the period Exchange differences
Change in the
consolidation scope
for disposal of entities
Cumulative
hyperinflation effect
at Dec. 31, 2023
1,989
555
1,434
917
314
603(1)
(1,567)
(424)
(1,143)
(45)
(7)
(38)
1,294
438
856
(1) The figure includes profit for year equal to €110 million.
Millions of euro
Revenue
Costs
Operating profit
Net financial income/(expense)
Net income/(expense) from hyperinflation
Pre-tax profit/(loss)
Income taxes
Profit/(Loss) for the year (owners of the Parent and non-controlling
interests)
Attributable to owners of the Parent
Attributable to non-controlling interests
(1)
(2)
Includes impact on depreciation, amortization and impairment losses of €55 million.
Includes impact on depreciation, amortization and impairment losses of €(27) million.
IAS 29 effect
IAS 21 effect Total effect at Dec. 31, 2023
278
352(1)
(74)
(39)
284
171
61
110
68
42
(588)
(641)(2)
53
16
-
69
126
(57)
(83)
26
(310)
(289)
(21)
(23)
284
240
187
53
(15)
68
Notes to the consolidated financial statements
307
6. 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 de-
mand;
• leverage the creation of value along the value chain;
• bring forward achievement of the sustainable “net-ze-
ro” goals to 2040.
Considering the risks related to climate change and the
commitments established under the Paris Agreement, the
Group has decided to achieve the carbon neutrality objec-
tives in advance and reflect its impact on assets, liabilities,
and profit or loss, highlighting its significant and foresee-
able impacts as required under the Conceptual Frame-
work of the international accounting standards.
In this regard, in accordance with the provisions of the
document published by the IFRS Foundation in July 2023,
the Group provides explicit information in the notes to
these consolidated financial statements regarding 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 associat-
ed with climate change are addressed:
Topic
Note
Content
Estimates and judgments concerning
climate change
Note 2.1 “Use of estimates and
management judgment”
Sustainable investment
Note 19 “Property, plant and equipment”
Measurement of non-financial assets
Note 12.e “Depreciation, amortization
and other impairment losses”
Note 19 “Property, plant and equipment”
Note 24 “Goodwill”
Provisions
Note 40 “Provisions for risks and
charges”
Sustainability-linked finance at Enel
Note 48.3 “Borrowings”
Note 60 “Events after the reporting
period”
Share-based payments
Note 53 “Share-based payments”
Environmental programs
Note 58 “Environmental programs”
• 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 (section: “Impairment of non-financial assets”).
• Focus of the effects of the Group’s commitments under the
Paris 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 infrastructure associated with the development of
the grid and investment in expanding the e-Mobility, e-City
and e-Home businesses.
• 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 provisions for the impact of climate change on
distribution grids and generation plants, including those
for decommissioning and restoration of sites, and possible
provisions for restructuring plans linked to the energy
transition.
• Focus on:
– issues of sustainability-linked bonds connected with the
achievement of sustainability objectives in line with the
SDGs issued by the United Nations
– green bonds used to finance specific sustainable Group
projects and initiatives
– sustainable loans connected with the achievement of the
Sustainable Development Goals (SDGs).
• Description of long-term incentive plans anchored to
achievement of specific climate-related targets.
• Description of costs relating to environmental compliance
required by national and international regulations.
• Description of costs generated by not having sufficient
environmental certificates to meet environmental
compliance regulations.
308 Integrated Annual Report 2023
7. Discontinued operations
Within the “Europe” area, the Enel Group has decided to
divest certain major business lines, particularly in Russia,
Romania and Greece.
Due to the fact that all discontinued assets represent a
significant part of a geographical area in which the Group
operates, the results relating to these assets have been
classified in accordance with the provisions of IFRS 5 in a
separate line of the consolidated income statement de-
nominated “Profit/(Loss) from discontinued operations”.
Millions of euro
Revenue
Costs
Operating profit/(loss)
Financial income/(expense)
Share of profit/(loss) of equity-accounted investments(1)
Pre-tax profit/(loss) from discontinued operations
Income taxes
Profit/(Loss) Russia, Greece and Romania
Capital gains/(losses) from disposal of discontinued operations
Profit/(Loss) from discontinued operations
In accordance with the provisions of IFRS 5, which governs
the presentation in the financial statements of profit or
loss and the disclosures to be provided in the explanatory
note on non-current assets held for sale and discontinued
operations, the income statement below reports the re-
sults of discontinued operations for 2023 and 2022.
The items are shown net of intercompany transactions
which have been completely eliminated.
2023
2,535
2,341
194
(62)
58
190
29
161
(532)
(371)
2022
3,543
4,815
(1,272)
(43)
83
(1,232)
(52)
(1,180)
(1,054)
(2,234)
Change
(1,008)
(2,474)
1,466
(19)
(25)
1,422
81
1,341
522
1,863
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
The breakdown by country is as follows.
Millions of euro
Total revenue
Costs
Impairment
Total costs
Operating profit/(loss)
Financial income/(expense)
Share of profit/(loss) of equity-accounted
investments
Pre-tax profit/(loss) from discontinued
operations
Current income taxes
Deferred income taxes
Income taxes
Profit/(Loss) Russia, Greece and Romania
Capital gains/(losses) from disposal of
discontinued operations
Profit/(Loss) from discontinued operations
2023
Russia
Greece
Romania
2022(1)
Russia(1)
Greece
Romania
2,535
2,126
215
2,341
194
(62)
58
190
67
(38)
29
161
(532)
(371)
-
-
-
-
-
-
58
58
-
-
-
58
(124)
(66)
122
75
-
75
47
(49)
-
(2)
8
-
8
(10)
262
252
2,413
2,051
215
2,266
147
(13)
-
3,543
3,585
1,230
4,815
290
243
534
777
(1,272)
(487)
(43)
83
(9)
64
134
(1,232)
(432)
59
(38)
21
113
(15)
(37)
(52)
8
-
8
(1,180)
(440)
(670)
(1,054)
(1,054)
(557)
(2,234)
(1,494)
125
70
-
70
55
(35)
19
39
2
-
2
37
-
37
3,128
3,272
696
3,968
(840)
1
-
(839)
(25)
(37)
(62)
(777)
-
(777)
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
Notes to the consolidated financial statements
309
In accordance with the provisions of IFRS 5, the facts
and circumstances that led to the reclassification are de-
scribed below.
For more information, please see note 9 “Main acquisi-
tions and disposals during the year”.
Russia
On October 12, 2022, Enel SpA closed the sale of the en-
tire stake held in PJSC Enel Russia. Upon completion of the
sale, Enel sold all power generation assets in Russia, which
include approximately 5.6 GW of conventional capacity
and approximately 300 MW of wind capacity at various
stages of development, ensuring continuity for its em-
ployees and customers.
Furthermore, on December 20, 2023, Enel SpA sold the
entire stake it held in Rusenergosbyt LLC for €83 million.
The operation had a negative impact of €124 million, of
which €82 million related to the release of the translation
reserve.
Romania
Following the agreements of December 14, 2022, Febru-
ary 4, 2023 and March 9, 2023, on October 25, 2023 Enel
SpA finalized the sale to the Greek company Public Power
Corporation SA (PPC) of all the equity stakes held by Enel
Group in Romania.
In accordance with the terms of the agreement, PPC paid
a total of €1,241 million. An earn-out mechanism is also
foreseen concerning a potential further post-closing pay-
ment, based on the future value of the retail business.
The overall transaction had a negative impact on the
Group’s net profit of about €847 million, of which €655
million reflecting the release of a currency translation re-
serve, €15 million in respect of transaction costs connect-
ed with the sale and the recognition of €177 million net of
taxation in impairment losses on the assets prior to the
sale.
Greece
Following the agreement of July 26, 2023, on December
29, 2023, Enel Green Power (EGP) finalized the sale of 50%
of Enel Green Power Hellas (EGPH), EGP’s fully-owned re-
newable subsidiary in Greece, to Macquarie Asset Man-
agement, acting through the Macquarie Green Investment
Group Renewable Energy Fund 2, following the fulfillment
of all the conditions customary for this type of transaction,
including receipt of clearance from competent antitrust
authorities.
In line with the above agreement, the total price received
by EGP was €351 million.
Following the transaction’s closing, EGP and Macquarie
Asset Management entered into a shareholder agree-
ment which envisages the joint control of EGPH in order to
co-manage the company’s current renewable generation
portfolio alongside continuing to develop its project pipe-
line, further increasing its installed capacity.
The transaction generated a positive impact on Group
profit of €422 million (including the remeasurement at fair
value of the residual interest).
For more information, please see note 9 “Main acquisi-
tions and disposals during the year”.
For more details on the financial position by business line
and geographical area of assets classified as discontin-
ued operations, please see the section “Performance by
primary segment (Business Line) and secondary segment
(Geographical Area)”.
The details of cash flows relating to discontinued opera-
tions are provided below, as already separately shown in
the cash flow statement.
Millions of euro
Cash flows from operating activities - discontinued operations
Cash flows used in investing activities - discontinued operations
Cash flows from/(used in) financing activities - discontinued operations
Cash flows - discontinued operations
2023
132
(442)
(16)
(326)
2022
(391)
(351)
656
(86)
Change
523
(91)
(672)
(240)
310 Integrated Annual Report 2023
8. Restatement of comparative disclosures
The 2022 statement of consolidated financial position
has been adjusted to take account of the effects of the
amendment to IAS 12 in effect for annual reporting peri-
ods beginning on or after January 1, 2023, which clarifies
that the exemption from initial recognition provided for by
the standard no longer applies to transactions that give
rise to taxable and deductible temporary differences of
the same amount, such as leases and decommissioning.
Impact on the consolidated financial position
Millions of di 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
at Dec. 31, 2022
IAS 12
at Dec. 31, 2022
restated
88,521
94
17,520
13,742
10,925
1,281
3,970
508
8,359
2,486
-
-
-
-
250
-
-
-
-
-
88,521
94
17,520
13,742
11,175
1,281
3,970
508
8,359
2,486
[Total]
147,406
250
147,656
4,853
16,605
106
561
14,830
13,753
4,314
11,041
66,063
6,149
219,618
-
-
-
-
-
-
-
-
-
6
256
4,853
16,605
106
561
14,830
13,753
4,314
11,041
66,063
6,155
219,874
[Total]
Notes to the consolidated financial statements
311
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
[Total]
[Total]
[Total]
at Dec. 31, 2022
IAS 12
at Dec. 31, 2022
restated
10,167
(47)
2,740
15,797
28,657
13,425
42,082
68,191
2,202
6,055
9,542
5,895
5,747
-
4,246
101,878
18,392
2,835
1,325
17,641
1,623
16,141
1,775
853
11,713
72,298
3,360
177,536
219,618
-
-
-
(2)
(2)
-
(2)
-
-
-
252
-
-
-
-
252
-
-
-
-
-
-
-
-
-
-
6
258
256
10,167
(47)
2,740
15,795
28,655
13,425
42,080
68,191
2,202
6,055
9,794
5,895
5,747
-
4,246
102,130
18,392
2,835
1,325
17,641
1,623
16,141
1,775
853
11,713
72,298
3,366
177,794
219,874
The 2022 consolidated income statement and statement
of consolidated comprehensive income have been ad-
justed to take account of the presentation in discontin-
ued operations, as required by the “IFRS 5 – Non-current
Assets Held for Sale and Discontinued Operations”, of the
investment held in Rusenergosbyt LLC, which was sold in
the 4th Quarter of 2023.
For more details, please see note 7 “Discontinued opera-
tions”.
312 Integrated Annual Report 2023
Impact on the consolidated income statement
Millions of euro
Revenue
Costs
Net results from commodity contracts
Operating profit
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income from hyperinflation
Share of profit/(loss) of equity-accounted investments
Pre-tax profit
Income taxes
Profit/(Loss) from continuing operations
Attributable to owners of the Parent
Attributable to non-controlling interests
Profit/(Loss) from discontinued operations
Attributable to owners of the Parent
Attributable to non-controlling interests
Profit/(Loss) for the year (owners of the Parent and non-controlling
interests)
Impact on the statement of consolidated comprehensive income
Millions of euro
Profit for the year
Other comprehensive income/(expense) that may be subsequently
reclassified to profit or loss (net of taxes)
Effective portion of change in the fair value of cash flow hedges
Change in the fair value of hedging costs
Share of the other comprehensive income of equity-accounted
investments
Change in the fair value of financial assets at FVOCI
Change in translation reserve
Cumulative other comprehensive income that may be subsequently
reclassified to profit or loss in respect of non-current assets and disposal
groups classified as held for sale/discontinued operations
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
Cumulative other comprehensive income that may not be subsequently
reclassified to profit or loss in respect of non-current assets and disposal
groups classified as held for sale/discontinued operations
Total other comprehensive expense for the year
Comprehensive income/(expense) for the year
Attributable to:
- owners of the Parent
- non-controlling interests
2022
140,517
131,689
2,365
11,193
3,118
3,430
3,414
5,880
290
4
8,741
3,523
5,218
3,637
1,581
(2,298)
(1,955)
(343)
2,920
2022
2,920
(1,677)
(70)
233
(44)
944
(63)
303
13
21
(340)
2,580
1,658
922
IFRS 5
2022 restated
-
-
-
-
-
-
-
-
-
(64)
(64)
-
(64)
(64)
-
64
64
-
-
140,517
131,689
2,365
11,193
3,118
3,430
3,414
5,880
290
(60)
8,677
3,523
5,154
3,573
1,581
(2,234)
(1,891)
(343)
2,920
IFRS 5
2022 restated
-
-
-
-
-
15
(15)
-
-
-
-
-
-
-
2,920
(1,677)
(70)
233
(44)
959
(78)
303
13
21
(340)
2,580
1,658
922
The figures presented in the comments and the tables
of the notes to these consolidated financial statements
at December 31, 2023 are uniform and comparable with
each other.
Notes to the consolidated financial statements
313
Changes in the consolidation scope
9. 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.
2022
• On January 3, 2022, Enel Produzione SpA acquired
100% of ERG Hydro Srl (subsequently renamed Enel Hy-
dro Appennino Centrale Srl and merged into Enel Pro-
duzione SpA on December 1, 2022), owner of genera-
tion plants with an installed capacity of about 527 MW
and an annual output of approximately 1.5 TWh, for a
consideration of about €1,267 million; in December
2022, the identification of the fair value of the acquired
assets and liabilities was completed, with the recogni-
tion of goodwill of approximately €349 million.
• On June 30, 2022, Enel Green Power SpA sold to Al
Rayyan Holding LLC (controlled by the Qatar Investment
Authority) 50% of its stake in EGP Matimba NewCo 1 Srl,
indirect owner of six companies in South Africa with an
installed capacity of about 740 MW, for about €108 mil-
lion, which has been paid in full.
• On July 25, 2022, Enel X Srl sold to Mooney SpA, for
about €140 million, settled in the form of financial re-
ceivables, its entire stake in Enel X Financial Services,
CityPoste Payment, PayTipper and Junia Insurance and
their subsidiaries.
• On August 24, 2022, Enel Brasil SA, a subsidiary of Enel
Américas, closed the sale of its entire stake in CGTF -
Central Geradora Termelétrica Fortaleza SA to ENEVA
SA for a consideration of about €89 million. The trans-
action had a negative impact on profit or loss of about
€210 million.
• On October 12, 2022, Enel finalized the sale of its entire
stake in PJSC Enel Russia, equal to 56.43% of the latter’s
share capital, to PJSC Lukoil and the Closed Combined
Mutual Investment Fund “Gazprombank-Frezia”, for a
2023
total of about €137 million. The transaction had a neg-
ative impact on reported Group net income of around
€1.5 billion, mainly reflecting the release of a currency
translation of about €1 billion and an impairment ad-
justment of €497 million.
• On December 9, 2022, Enel Chile SA finalized the sale
of its entire 99.09% stake in the share capital of listed
Chilean power transmission company Enel Transmisión
Chile SA to Sociedad Transmisora Metropolitana SpA,
controlled by Inversiones Grupo Saesa Ltda, for about
€1.3 billion. The transaction generated a capital gain of
about €1.1 billion.
• On December 22, 2022, Enel closed the sale of a 50%
quota in its wholly-owned subsidiary Gridspertise Srl to
the international private equity fund CVC Capital Part-
ners Fund VIII for a total of approximately €300 million.
The transaction involved the recognition of a capital
gain of €261 million and the remeasurement to fair val-
ue of the residual holding in the amount of €259 million.
• On December 29, 2022, Enel Brasil SA, a subsidiary of
Enel Américas SA, finalized the sale of its entire stake
in the Brazilian power distribution company Celg Dis-
tribuição SA - Celg-D (Enel Goiás), equal to about 99.9%
of the latter’s share capital, to Equatorial Participações
e Investimentos SA, a subsidiary of Equatorial Energia
SA, for a total of about €1.5 billion (of which about €269
million for the equity portion and about €1.2 billion as
repayment of intercompany loans). The transaction had
a negative impact on profit or loss of about €1 billion,
mainly reflecting the release of a currency translation
reserve associated with the net assets sold.
• On February 17, 2023, the Enel Group, through its sub-
sidiary Enel Argentina, closed the deal for the sale to
energy company Central Puerto SA of the Group’s stake
in the thermal generation company Enel Generación
Costanera for €42 million, which have been collected
in full. The transaction resulted in the recognition of a
capital loss of €132 million.
• On April 14, 2023, the Enel Group completed the sale
to YPF and Pan American Sur SA of the shares held in
Inversora Dock Sud SA and Central Dock Sud SA, for
a total of €48 million. The transaction had a negative
impact on profit or loss of about €194 million.
• On September 29, 2023, the Enel Group, acting through
its subsidiary Enel Green Power SpA, finalized the sale
of 50% of the two companies that own all of the Group’s
renewables operations in Australia, specifically Enel
314 Integrated Annual Report 2023
Green Power Australia (Pty) Ltd and Enel Green Power
Australia Trust, to INPEX Corporation, for a total of €142
million. The operation resulted in the recognition of a
gain of €103 million.
• On October 25, 2023, Enel SpA and its listed subsidi-
ary Enel Chile SA closed the sale of their entire equi-
ty interests in the share capital of Arcadia Generación
Solar SA, a Chilean company which owns a portfolio of
four operating PV plants for a total installed capacity
of approximately 416 MW, to Sonnedix, an international
renewable energy producer, for a total of €535 million.
The transaction resulted in the recognition of a capital
gain of €195 million.
• On October 25, 2023, the Enel Group finalized the sale
Other changes
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.
• On November 24, 2023, the Enel Group, acting through
the subsidiary Endesa Generación SAU, finalized the
sale of the entire investment in Tecnatom SA for a total
Sale of Enel Generación Costanera
On February 17, 2023, the Enel Group sold its stake in the
thermal generation company Enel Generación Costanera
for €42 million, collected in full.
Millions of euro
Sale price
Total net assets sold
Release of OCI reserve
Gain/(Loss) on sale
to the Greek company Public Power Corporation SA of
all the equity stakes held by the Enel Group in Roma-
nia, for a total of €1,241 million. The transaction had a
negative impact on profit or loss of the year of €847
million, of which €655 million reflecting the release of a
currency translation reserve.
• On December 29, 2023, Enel SpA, acting through its
fully-owned subsidiary Enel Green Power SpA, finalized
the sale of 50% of Enel Green Power Hellas, Enel Green
Power’s fully-owned renewable subsidiary in Greece, to
Macquarie Asset Management, for a total of €351 mil-
lion. The overall transaction had a positive impact on
the profit or loss of the Group in 2023 of €422 million.
of €26 million. The transaction had no impact on profit
or loss.
• On December 20, 2023, Enel SpA sold its entire stake in
Rusenergosbyt LLC for a total of €83 million. The trans-
action had a negative impact of €124 million on Group
profit, of which €82 million reflecting the release of a
currency translation reserve.
42
(39)
(135)
(132)
Sale of Inversora Dock Sud SA and Central Dock Sud SA
On April 14, 2023, the Enel Group completed the sale of
shares held in the thermal generation companies Inverso-
ra Dock Sud SA and Central Dock Sud SA for €48 million,
collected in full.
Millions of euro
Sale price
Total net assets sold
Release of OCI reserve
Gain/(Loss) on sale
48
(48)
(194)
(194)
Notes to the consolidated financial statements
315
Sale of 50% of Enel Green Power Australia
On September 29, 2023, the Enel Group, acting through
its subsidiary Enel Green Power SpA, finalized the sale of
50% of the two companies that own all of the Group’s re-
newables operations in Australia, specifically Enel Green
Power Australia (Pty) Ltd and Enel Green Power Australia
Trust, to INPEX Corporation, for a total of €142 million, col-
lected in full.
Millions of euro
Sale price
Total net assets sold
Release of OCI reserve
Gain/(Loss) on sale
Fair value remeasurement of residual interest (50%)
Income from sale
Sale of Arcadia Generación Solar
142
(63)
(55)
24
79
103
On October 25, 2023, Enel SpA and its subsidiary Enel
Chile SA finalized the sale of their entire stakes in Arcadia
Generación Solar SA to Sonnedix, for a total consideration
of €535 million, which have been collected in full.
Millions of euro
Sale price
Total net assets sold
Release of OCI reserve
Transaction costs
Goodwill
Gain/(Loss) on sale
The transaction had a tax effect of €68 million.
Sale of Romanian operations
535
(314)
21
(1)
(46)
195
On October 25, 2023, the Enel Group finalized the sale to
the Greek company Public Power Corporation SA of all the
equity stakes held in Romania, for a total consideration of
€1,241 million, collected in full.
Millions of euro
Sale price
Total net assets sold
Release of OCI reserve
Transaction costs
Gain/(Loss) on sale
Adjustment of pre-sale plant value
Tax on value adjustment
Financial impact
316 Integrated Annual Report 2023
1,241
(1,241)
(655)
(15)
(670)
(215)
38
(847)
Sale of 50% of Enel Green Power Hellas
On December 29, 2023, Enel SpA, acting through its ful-
ly-owned subsidiary Enel Green Power SpA, finalized the
sale of 50% of Enel Green Power Hellas, Enel Green Pow-
er’s fully-owned renewable subsidiary in Greece, to Mac-
quarie Asset Management, for a total consideration of
€351 million, collected in full.
Millions of euro
Sale price
Total net assets sold
Transaction costs
Gain/(Loss) on sale
Fair value remeasurement of residual interest (50%)
Income from sale
351
(86)
(3)
262
160
422
10. Performance and financial position by primary segment (Business
Line) and secondary segment (Geographical Area)
The representation of performance and financial position
presented here is based on the approach used by man-
agement in monitoring Group performance for the two
periods under review. In particular, management monitors
and reports on performance by business line. Accordingly,
the Group has 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 geographical area.
In this regard, note that the organizational simplification
process begun in 2023 led to a restructuring of the busi-
ness lines and geographical areas, with a consequent
need to redefine the segments subject to disclosure in
order to present the results of the segments based on the
approach used by management to monitor and present
the Group’s performance to investors.
In particular, in the presentation of figures by primary seg-
ment (Business Line):
• the figures for Enel X, which in the year ended Decem-
ber 31, 2022 had been presented separately, are now
reported under End-user Markets;
• the figures for Enel X Way, which in the year ended De-
cember 31, 2022 had been presented under Holding,
Services and Other, are now reported under End-user
Markets.
In the presentation of figures by secondary segment
(Geographical Area), the figures for Latin America, Europe,
North America, and Africa, Asia and Oceania have merged
into the “Rest of the World” area.
Following these changes, the figures for the previous year
have been adjusted for comparative purposes only.
Notes to the consolidated financial statements
317
Performance by primary segment (Business Line)
Results for 2023(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
Operating profit/(loss)
Capital expenditure
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
20,152
8,459
17,206
49,748
-
95,565
-
95,565
20,038
3,161
3,053
2,371
2,045
30,668
(30,668)
-
40,190
11,620
20,259
52,119
2,045
126,233
(30,668)
95,565
35,140
6,377
12,798
46,038
2,659
103,012
(30,668)
72,344
(1,983)
(65)
-
(923)
5
(2,966)
775
161
(49)
1,603
1,552
(19)
2,957
168
(90)
2,180
2,042
4,426
785
1,439
(108)
3,042
761(2)
5,345(3)
5,280(4)
1,138(5)
233
18
(2)
(858)
190(6)
6,353
3,338
(268)
10,832
12,714
-
-
-
-
-
-
(2,966)
6,353
3,338
(268)
10,832
12,714
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €14 million regarding units classified as held for sale or discontinued operations.
(3) Does not include €565 million regarding units classified as held for sale or discontinued operations.
(4) Does not include €233 million regarding units classified as held for sale or discontinued operations.
(5) Does not include €34 million regarding units classified as held for sale or discontinued operations.
(6) Does not include €3 million regarding units classified as held for sale or discontinued operations.
Results for 2022(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
Operating profit/(loss)
Capital expenditure
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
53,239
6,669
19,806
60,785
18
140,517
-
140,517
23,096
2,498
3,226
3,565
2,032
34,417
(34,417)
-
76,335
71,189
551
802
562
(52)
9,167
23,032
64,350
2,050
174,934
(34,417)
140,517
5,873
13,918
64,143
2,225
157,348
(34,384)
122,964
183
1,456
53
(2)
2,852
1,047
(117)
-
1,595
747
1,296
(148)
(93)
(5)
229
-
-
2,324
6,086
2,958
(319)
(409)
11,185
4,385
1,970
5,332
990(2)
6,386(3)
5,547(4)
1,205(5)
219
14,347
41
2,365
-
-
-
8
-
6,086
2,958
(319)
11,193
14,347
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €2 million regarding units classified as held for sale or discontinued operations.
(3) Does not include €42 million regarding units classified as held for sale or discontinued operations.
(4) Does not include €110 million regarding units classified as held for sale or discontinued operations.
(5) Does not include €2 million regarding units classified as held for sale or discontinued operations.
318 Integrated Annual Report 2023
Performance by secondary segment (Geographical Area)
Results for 2023(1)
Millions of euro
Italy
Iberia
Rest
of the
World
Latin
America
Europe
North
America
Africa,
Asia and
Oceania
Eliminations
Rest of the
World
Other,
eliminations
and
adjustments
Total
49,145
25,418
20,927
18,569
234
2,129
335
(340)
75
95,565
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
182
10
354
7
5
13
3
49,327
25,428
21,281
18,576
38,792
18,578
15,091
13,563
233
(3,171)
(38)
181
239
80
-
2
2
(1)
2,142
1,262
(220)
491
1,425
-
338
200
1
49
-
(4)
94
Depreciation and amortization
2,325
1,911
1,931
1,389
Impairment losses
Impairment gains
824
(22)
558
(197)
1,879
(48)
452
(43)
Operating profit/(loss)
7,641
1,407
2,390
3,396
156
(1,256)
Capital expenditure
5,763(2)
2,305 4,419(3)
3,302(4)
2(5)
1,096(6)
19(7)
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €337 million regarding units classified as held for sale or discontinued operations.
(3) Does not include €512 million regarding units classified as held for sale or discontinued operations.
(4) Does not include €180 million regarding units classified as held for sale or discontinued operations.
(5) Does not include €210 million regarding units classified as held for sale or discontinued operations.
(6) Does not include €1 million regarding units classified as held for sale or discontinued operations.
(7) Does not include €121 million regarding units classified as held for sale or discontinued operations.
326
(14)
(14)
-
-
-
-
-
-
(546)
-
(471) 95,565
(117)
72,344
10
(2,966)
186
6,353
77
(1)
3,338
(268)
(606)
10,832
227
12,714
Results for 2022(1)
Millions of euro
Italy
Iberia
Rest
of the
World
Latin
America
Europe
North
America
Africa,
Asia and
Oceania
Eliminations
Rest of the
World
Other,
eliminations
and
adjustments
Total
83,337
32,725
23,476
21,329
82
2,208
266
(409)
979 140,517
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
171
108
398
5
83,508
32,833
23,874
21,334
81,880
25,388
16,149
14,811
4,679
(2,215)
(95)
56
Depreciation and amortization
2,209
1,784
1,900
Impairment losses
Impairment gains
886
(39)
478
1,577
(271)
(7)
1,393
1,553
(7)
5
87
66
6
2
1
-
6
-
2,214
1,126
266
174
(148)
430
18
-
(9)
75
5
-
3
382
(27)
(28)
-
-
-
-
1
-
(677)
-
302 140,517
(453) 122,964
(4)
2,365
193
6,086
17
(2)
2,958
(319)
543
11,193
223(6)
14,347
Operating profit/(loss)
3,251
3,239
4,160
3,640
24
492
Capital expenditure
4,640
2,316
7,168(2)
4,289(3)
224(4)
2,491
164(5)
(1) Segment revenue includes both revenue from third parties and revenue from transactions with other segments.
(2) Does not include €138 million regarding units classified as held for sale or discontinued operations.
(3) Does not include €94 million regarding units classified as held for sale or discontinued operations.
(4) Does not include €4 million regarding units classified as held for sale or discontinued operations.
(5) Does not include €40 million regarding units classified as held for sale or discontinued operations.
(6) Does not include €18 million regarding units classified as held for sale or discontinued operations.
Notes to the consolidated financial statements
319
Financial position by primary segment (Business Line)
At December 31, 2023
Millions of euro
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
Property, plant and equipment
8,340
42,757
40,490
Intangible assets
Non-current and current contract
assets
Trade receivables
Other
Operating assets
271
20
7,287
5,736
5,555
20,188
1,142
4,926
17
484
169
3,471
290
7,771
2,738
8,373
2,489
793
443
2
792
3,134
93,522
31,383
692
27,694
14,387
(13)
93,509
-
(1)
31,383
691
(9,711)
17,983
(6,268)
8,119
21,654(1)
52,090(2)
71,671(3)
17,099(4)
5,164(5)
167,678
(15,993)
151,685
Trade payables
6,741
3,797
4,174
9,418
1,014
25,144
(8,986)
16,158
Non-current and current contract
liabilities
Sundry provisions
Other
112
3,468
3,833
271
979
1,606
7,515
3,348
9,817
59
742
4,327
Operating liabilities
14,154(6)
6,653(7)
24,854(8)
14,546(9)
6,969(10)
(1) Of which €640 million regarding units classified as held for sale or discontinued operations.
(2) Of which €2,254 million regarding units classified as held for sale or discontinued operations.
(3) Of which €2,469 million regarding units classified as held for sale or discontinued operations.
(4) Of which €84 million regarding units classified as held for sale or discontinued operations.
(5) Of which €9 million regarding units classified as held for sale or discontinued operations.
(6) Of which €142 million regarding units classified as held for sale or discontinued operations.
(7) Of which €265 million regarding units classified as held for sale or discontinued operations.
(8) Of which €207 million regarding units classified as held for sale or discontinued operations.
(9) Of which €19 million regarding units classified as held for sale or discontinued operations.
(10) Of which €3 million regarding units classified as held for sale or discontinued operations.
7
7,964
1,208
4,740
9,745
24,323
67,176
(95)
(63)
7,869
9,682
(6,164)
18,159
(15,308)
51,868
At December 31, 2022
Millions of euro
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Property, plant and equipment
8,530
41,519
40,377
Intangible assets
397
5,723
20,035
760
4,975
Non-current and current contract
assets
Trade receivables
Other
Operating assets
-
50
500
109
7,667
7,928
3,730
540
5,706
2,551
9,003
3,262
642
467
6
1,197
2,463
91,828
31,597
665
27,303
16,744
Total
91,825
31,597
664
(3)
-
(1)
(9,567)
17,736
(7,891)
8,853
24,522(1)
51,562(2)
69,169(3)
18,109(4)
4,775(5)
168,137
(17,462)
150,675
Trade payables
8,034
4,173
4,297
9,396
1,205
27,105
(9,042)
18,063
Non-current and current contract
liabilities
Sundry provisions
Other
95
3,979
3,475
323
921
1,802
7,527
3,263
6,691
91
488
7,055
9
8,045
1,088
4,434
9,739
23,457
(81)
(68)
7,964
9,671
(7,903)
15,554
Operating liabilities
15,583(6)
7,219(7)
21,778(8)
17,030(9)
6,736(10)
68,346
(17,094)
51,252
(1) Of which €188 million regarding units classified as held for sale or discontinued operations.
(2) Of which €2,146 million regarding units classified as held for sale or discontinued operations.
(3) Of which €1,994 million regarding units classified as held for sale or discontinued operations.
(4) Of which €1,241 million regarding units classified as held for sale or discontinued operations.
(5) Of which €32 million regarding units classified as held for sale or discontinued operations.
(6) Of which €92 million regarding units classified as held for sale or discontinued operations.
(7) Of which €308 million regarding units classified as held for sale or discontinued operations.
(8) Of which €866 million regarding units classified as held for sale or discontinued operations.
(9) Of which €801 million regarding units classified as held for sale or discontinued operations.
(10) Of which €15 million regarding units classified as held for sale or discontinued operations.
320 Integrated Annual Report 2023
Financial position by secondary segment (Geographical Area)
At December 31, 2023
Millions of euro
Italy
Iberia
Rest
of the
World
Latin
America Europe
Property, plant and equipment
34,361
23,527
35,524
22,273
Intangible assets
3,122
16,178
11,397
10,771
Non-current and current
contract assets
Trade receivables
Other
90
80
520
473
8,819
4,011
4,281
2,375
5,302
1,706
4,978
1,393
3
26
2
29
13
North
America
12,790
482
40
244
271
Operating assets
50,673(1) 46,171 54,449(2) 39,888(3)
73 13,827(4)
690(5)
Trade payables
9,001
2,888
5,011
4,075
30
849
Non-current and current
contract liabilities
4,318
3,537
47
47
Sundry provisions
3,078
3,177
2,686
2,529
Other
6,913
3,556
6,219
4,205
Operating liabilities
23,310(6) 13,158 13,963(7) 10,856(8)
-
1
37
68
-
134
1,932
2,915(9)
148(10)
Africa,
Asia and
Oceania
Eliminations
Rest of the
World
Other,
eliminations
and
adjustments
Total
458
118
5
78
31
79
-
21
48
-
-
-
(27)
(2)
(29)
97
93,509
686
31,383
1
691
(149)
17,983
(243)
8,119
392 151,685
(22)
(742)
16,158
-
1
(3)
(24)
(33)
7,869
741
9,682
1,471
18,159
1,437
51,868
(1) Of which €631 million regarding units classified as held for sale or discontinued operations.
(2) Of which €4,801 million regarding units classified as held for sale or discontinued operations.
(3) Of which €4,541 million regarding units classified as held for sale or discontinued operations.
(4) Of which €242 million regarding units classified as held for sale or discontinued operations.
(5) Of which €18 million regarding units classified as held for sale or discontinued operations.
(6) Of which €155 million regarding units classified as held for sale or discontinued operations.
(7) Of which €481 million regarding units classified as held for sale or discontinued operations.
(8) Of which €477 million regarding units classified as held for sale or discontinued operations.
(9) Of which €3 million regarding units classified as held for sale or discontinued operations.
(10) Of which €1 million regarding units classified as held for sale or discontinued operations.
At December 31, 2022
Millions of euro
Italy
Iberia
Rest
of the
World
Latin
America Europe
North
America
Africa,
Asia and
Oceania
Eliminations
Rest of the
World
Other,
eliminations
and
adjustments
Total
Property, plant and equipment
30,327
23,167
38,220
21,099
2,397
13,722
1,002
Intangible assets
3,200
16,173
11,596
10,534
331
602
129
Non-current and current
contract assets
Trade receivables
Other
73
9
576
493
48
7,086
4,369
4,947
2,929
6,470
2,105
5,037
1,127
1,498
294
19
268
250
16
66
63
Operating assets
45,633(1) 46,647 58,967(2) 38,661(3) 4,197(4)
14,861
1,276(5)
-
-
-
(28)
-
(28)
111
91,825
628
31,597
6
664
(189)
17,736
(1,128)
8,853
(572) 150,675
Trade payables
9,595
3,220
6,652
4,813
483
1,261
119
(24)
(1,404)
18,063
Non-current and current
contract liabilities
4,188
3,351
479
35
443
Sundry provisions
3,008
3,458
2,576
2,378
Other
4,323
3,144
7,076
4,480
69
637
-
97
1,893
1
32
66
-
-
-
(54)
7,964
629
9,671
1,011
15,554
Operating liabilities
21,114(6)
13,173 16,783(7) 11,706(8) 1,632(9)
3,251
218(10)
(24)
182
51,252
(1) Of which €253 million regarding units classified as held for sale or discontinued operations.
(2) Of which €4,968 million regarding units classified as held for sale or discontinued operations.
(3) Of which €307 million regarding units classified as held for sale or discontinued operations.
(4) Of which €4,108 million regarding units classified as held for sale or discontinued operations.
(5) Of which €553 million regarding units classified as held for sale or discontinued operations.
(6) Of which €64 million regarding units classified as held for sale or discontinued operations.
(7) Of which €1,737 million regarding units classified as held for sale or discontinued operations.
(8) Of which €99 million regarding units classified as held for sale or discontinued operations.
(9) Of which €1,584 million regarding units classified as held for sale or discontinued operations.
(10) Of which €54 million regarding units classified as held for sale or discontinued operations.
Notes to the consolidated financial statements
321
The following table reconciles segment assets and liabili-
ties and the consolidated figures.
Millions of euro
Total assets
Equity-accounted investments
Non-current financial derivative assets
Other non-current financial assets
Non-current tax assets included in “Other non-current assets”
Other current financial assets
Current financial derivative assets
Cash and cash equivalents
Deferred tax assets(1)
Tax assets
Financial and tax assets of “Assets classified as held for sale”(1)
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(1)
Income tax liabilities
Other tax liabilities
Financial and tax liabilities of “Liabilities included in disposal groups
classified as held for sale”(1)
Segment liabilities
at Dec. 31, 2023
at Dec. 31, 2022
195,224
219,874
1,650
2,383
8,750
1,487
4,329
6,407
6,801
9,218
2,016
498
151,685
150,115
61,085
3,373
8
4,769
9,086
909
6,461
8,217
1,573
1,034
1,732
51,868
1,281
3,970
8,359
1,674
13,753
14,830
11,041
11,175
2,159
957
150,675
177,794
68,191
5,895
-
18,392
2,835
853
16,141
9,794
1,623
1,048
1,770
51,252
(1) Figures at December 31, 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting pe-
riods beginning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
322 Integrated Annual Report 2023
Information on the consolidated income statement
Revenue
11.a Revenue from sales and services – €92,882 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
Sale of environmental certificates
Sale of value-added services
Other sales and services
Total IFRS 15 revenue
Sale of commodities under contracts with physical settlement
Gain/(Loss) on the measurement of commodity sales contracts with
physical settlement closed during the period
Other revenue
2023
52,465
11,123
1,142
1,570
7,983
68
3,458
877
995
283
1,653
866
2022
69,340
11,096
979
1,667
8,970
80
5,605
826
1,672
111
1,384
918
82,483
102,648
8,875
1,508
16
37,247
(4,260)
18
Change
(16,875)
-24.3%
27
163
(97)
(987)
(12)
(2,147)
51
(677)
172
269
(52)
(20,165)
(28,372)
5,768
(2)
0.2%
16.6%
-5.8%
-11.0%
-15.0%
-38.3%
6.2%
-40.5%
-
19.4%
-5.7%
-19.6%
-76.2%
-
-11.1%
-31.5%
Total revenue from sales and services
92,882
135,653
(42,771)
Revenue from the “sale of electricity” amounted to
€52,465 million, a decrease of €16,875 million compared
with the previous year (-24.3%). The decrease mainly re-
flected lower sales volumes against a background of de-
creasing electricity sales prices, mainly in Italy (€9,873 mil-
lion) and Spain (€6,916 million), reflecting the stabilization
of markets.
“Transfers from institutional market operators” increased
by €163 million compared with the previous year, main-
ly reflecting an increase in transfers in Italy (€334 million),
primarily relating to the remuneration of the capacity
market and the plan to maximize thermal generation from
plants powered by alternative fuels to gas required by the
Ministry of the Environment and Energy Security (MASE),
which included a number of Enel Produzione SpA plants.
The item was offset by a decrease in transfers in Argentina
(€139 million) and Peru (€28 million).
Revenue from the “sale of gas” in 2023 amounted to
€7,983 million (€8,970 million in 2022), a decrease of €987
million compared with the previous year. The decrease is
mainly attributable to a decrease in prices and the number
of customers in Spain (€1,101 million), offset by the adjust-
ment of offers to market prices (through indexation or re-
structuring of contract conditions), partly offset by greater
sales in Italy (€272 million).
Revenue from the “sale of fuel” decreased by €2,147 mil-
lion due to decreasing gas sales prices in trading opera-
tions. This was partially offset by higher sales in Spain.
Revenue from “construction contracts” came to €995 mil-
lion, a decrease of €677 million, attributable to the decline
in development work on the distribution grid operated on
concession basis in Brazil and mainly to the change in the
Group consolidation scope following the disposal of Celg
Distribuição SA - Celg-D (Enel Goiás) in December 2022.
Revenue from “sale of environmental certificates” came to
€283 million, up €172 million. The increase is mainly attrib-
utable to higher sales of CO2 allowances by Endesa Gen-
eración (€166 million).
“Sale of value-added services” came to €1,653 million,
an increase of €269 million, mainly attributable to greater
revenue from the sale of energy efficiency products and
services connected with the maintenance, consulting,
Notes to the consolidated financial statements
323
repair and installation of energy efficient products in the
e-Home and Vivi Meglio segments of Enel X in Italy (€123
million), and greater revenue from the sale of value-added
services in North America (€55 million) and Colombia (€21
million).
The decrease in revenue from the “sale of commodities
under contracts with physical settlement”, measured at
fair value through profit or loss within the scope of IFRS
9 (€28,372 million), mainly regards the sale of gas and re-
flects a decrease in prices as well as in volumes handled.
The following table shows the net results on contracts for
the sale or purchase of commodities with physical settle-
ment measured at fair value through profit or loss within
the scope of IFRS 9.
324 Integrated Annual Report 2023
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
2023
2022
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 emissions allowances
Fair value gain/(loss) on closed contracts
Total emissions allowances
Sale of guarantees of origin
Fair value gain/(loss) on closed contracts
Total guarantees of origin
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 emissions allowances
Fair value gain/(loss) on closed contracts
Total emissions allowances
Purchase of guarantees of origin
Fair value gain/(loss) on closed contracts
Total guarantees of origin
Total costs
Net revenue/(costs) on contracts for energy commodities with physical
settlement (within the scope of IFRS 9) closed in the period
Gain/(Loss) from measurement of outstanding contracts for energy
commodities with physical settlement (within the scope of IFRS 9)
Sales contracts
Electricity
Gas
Emissions allowances
Guarantees of origin
Total
Purchase contracts
Electricity
Gas
Emissions allowances
Guarantees of origin
Total
Gain/(Loss) from measurement of outstanding contracts for energy
commodities with physical settlement (within the scope of IFRS 9)
1,550
281
1,831
7,271
1,114
8,385
4
109
113
50
4
54
5,436
(795)
4,641
30,924
(3,600)
27,324
875
131
1,006
12
4
16
(3,886)
1,076
(2,810)
(23,653)
4,714
(18,939)
(871)
(22)
(893)
38
-
38
-71.5%
-
-60.5%
-76.5%
-
-69.3%
-99.5%
-16.8%
-88.8%
-
-
-
10,383
32,987
(22,604)
-68.5%
2,884
570
3,454
8,063
1,370
9,433
624
(31)
593
101
32
133
6,161
(200)
5,961
33,092
(1,940)
31,152
843
132
975
25
3
28
(3,277)
770
(2,507)
(25,029)
3,310
(21,719)
(219)
(163)
(382)
76
29
105
-53.2%
-
-42.1%
-75.6%
-
-69.7%
-26.0%
-
-39.2%
-
-
-
13,613
(3,230)
38,116
(5,129)
(24,503)
-64.3%
1,899
37.0%
226
136
23
4
389
254
586
19
67
926
(537)
(134)
4,841
490
(15)
5,182
(124)
3,879
627
(72)
4,310
872
360
(4,705)
(467)
19
(4,793)
378
(3,293)
(608)
139
(3,384)
(1,409)
-
-97.2%
-95.3%
-
-92.5%
-
-84.9%
-97.0%
-
-78.5%
-
Total net revenue/(costs) on contracts with physical settlement (within the
scope of IFRS 9)
(3,767)
(4,257)
490
11.5%
Notes to the consolidated financial statements
325
Revenue from contracts with customers (IFRS 15) breaks
down into “point in time” and “over time” revenue as indi-
cated in the following table.
Millions of euro
2023
Italy
Iberia
Rest of the World
Other, eliminations and
adjustments
Total
Point in
Point in
Over time
time Over time
time Over time
Point in
time
Point in
Over time
time Over time
Point in
time
Total IFRS 15 revenue
36,982
1,169
23,063
1,973
17,887
1,342
13
54
77,945
4,538
Italy
Iberia
Rest of the World
Other, eliminations and
adjustments
Total
Point in
Point in
Over time
time Over time
time Over time
Point in
time
Point in
Over time
time Over time
Point in
time
2022
Total IFRS 15 revenue
47,650
2,068
30,984
1,425
19,061
1,307
10
143
97,705
4,943
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
Belgium
Czech Republic
Hungary
Netherlands
United Kingdom
Other European countries
Americas
United States
Canada
Mexico
Brazil
Chile
Peru
Colombia
Argentina
Panama
Costa Rica
Guatemala
Other
Africa
Asia
Oceania
Total
326 Integrated Annual Report 2023
2023
39,724
21,799
1,919
1,936
1,028
75
10
4
6
13
180
13
145
4,523
2,299
864
62
315
7,621
4,369
1,565
3,248
613
200
17
81
96
119
38
2022
57,859
30,535
3,086
6,791
1,676
189
146
3
15
834
321
7
38
11,841
1,551
779
53
313
9,064
4,434
1,449
2,725
966
177
17
83
132
521
48
92,882
135,653
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 es-
timates and management judgment”.
Type of product/
service
Sale of electricity
produced by the
Group
Network
connection
services
Sale/transport of
electricity/gas to
end users
Nature and timing of satisfaction of performance obligation
Accounting policies
In order to determine the nature of the promise contained in
these contracts with customers for the sale of electricity, the
Group carefully analyzes the facts and circumstances applicable
to each contract.
For the sale of electricity on power exchanges, the facts
and circumstances (including the intrinsic characteristics of
the commodity, contractual terms, information regarding
infrastructure and other delivery mechanisms) generally indicate
that the performance obligation is a service in which the
customer simultaneously receives and consumes the benefits
of the commodity as it is delivered. Thus, the Group identifies
a performance obligation satisfied over time 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.
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).
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 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.
The Group applies an output method to recognize
revenue from the sale of electricity on power exchanges,
recognized over time, so as 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,
i.e. at the price defined in the market (without variable
consideration).
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.
The Group applies an output method to recognize
revenue from the sale and transport of electricity/gas
to end users, so as 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, i.e. the
quantities provided during the period, even if these have
not yet been invoiced; this revenue 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.
Notes to the consolidated financial statements
327
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.
Service concession
arrangements
(within the scope
of IFRIC 12)
The Group, as concession holder, provides services for the
construction/upgrade of the infrastructure used for the
provision of public services and/or services for the operation
and maintenance of the infrastructure itself for the period of the
concession.
For performance obligations related to infrastructure
construction and improvement, please refer to the section
“Construction contracts”.
As far as revenue from operating services are concerned, please
refer to the sections “Sale of electricity produced by the Group”
and “Sale/transport of electricity/gas to end users”.
11.b Other income – €2,683 million
Millions of euro
Grants for environmental certificates(1)
Other operating grants
Capital grants (electricity and gas business)
Sundry reimbursements
Gains on the disposal of subsidiaries, associates, joint ventures, joint
operations and non-current assets held for sale
Gains on the disposal of property, plant and equipment, and intangible
assets
Service continuity bonuses
Other income
Total
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.
When the Group provides construction/upgrade
services, it recognizes intangible assets and/or financial
assets, depending on the characteristics of the service
concession arrangement.
The amounts received or receivable relating to both
components are initially recognized as revenue from
contracts with customers. For more details on revenue
recognition, please refer to the section “Construction
contracts”.
Furthermore, the component recognized in profit or
loss deriving from the remeasurement at fair value of
the financial assets in respect of service concession
agreements for the distribution business in Brazil is
also classified as revenue, in order to adequately reflect
the business model in line with the related concession
agreement.
Revenues from management and maintenance activities
are recognized as revenue from the sale of electricity on
the market or to end users (please refer to sections “Sale
of electricity produced by the Group” and “Sale/transport
of electricity/gas to end users”, respectively).
2023
346
9
28
314
584
44
13
1,345
2,683
2022
220
28
28
314
Change
126
(19)
-
-
57.3%
-67.9%
-
-
1,876
(1,292)
-68.9%
64
31
2,303
4,864
(20)
(18)
(958)
(2,181)
-31.3%
-58.1%
-41.6%
-44.8%
(1) For more on “Grants for environmental certificates”, please see note 58 “Environmental programs”.
Gains on the disposal of entities amounted to €584 million
in 2023, mainly reflecting the recognition by Enel CIEN (in
Brazil) of €99 million for the end-of-concession indemni-
ty received for the takeover of the concession by another
entity, the overall income of €103 million from the partial
sale with loss of control of assets held in Australia, the gain
on the sale of Arcadia Generación Solar (€195 million) and
the remeasurement at fair value of the residual interest in
Enel Green Power Hellas (€160 million).
In 2022, the item mainly included the recognition of gains
on the disposal by Enel X International of 1.1% of the in-
vestment in Ufinet (€220 million), the sale by Enel X Srl of
financial companies to Mooney (€67 million), the sale of
50% of the investment held by Enel Grids in Gridspertise
(€520 million) and the sale of Enel Chile’s interest in Enel
Transmisión Chile.
“Other income” decreased by €958 million, mainly due to
the decrease of income of Enel Generación Chile (€456
million), mainly in respect of the contractual agreement
with Shell, the modification of which generated an in-
crease in 2022; the decrease in the income connected
with the electricity business recognized in Argentina (€219
million) following the agreements concluded in 2022 be-
328 Integrated Annual Report 2023
tween Edesur and the local authorities, as well as the de-
crease in Enel Green Power North America in income from
tax partnerships (€127 million).
The following tables show a breakdown of total revenue
by business line based on the approach used by manage-
ment to monitor the Group’s performance during the two
years being compared.
Millions of euro
2023
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets
Holding
and
Services
Total
reporting
segment
Eliminations
and
adjustments
Total
Total IFRS 15 revenue
26,354
9,982
19,719
51,630
2,004
109,689
(27,206)
82,483
Sale of commodities under
contracts with physical settlement
Gain/(Loss) on the measurement
of commodity sales contracts with
physical settlement closed during
the period
Other revenue
Total revenue from sales and
services
Other income
TOTAL REVENUE
Millions of euro
12,374
1,504
6
-
-
3
-
-
18
6
4
1
-
-
12,380
(3,505)
8,875
1,508
-
1,508
16
44
(28)
16
40,238
9,985
19,737
51,641
2,020
123,621
(30,739)
92,882
(48)
1,635
522
478
25
2,612
71
2,683
40,190
11,620
20,259
52,119
2,045
126,233
(30,668)
95,565
Thermal
Generation and
Trading
Enel Green
Power
Enel
Grids
End-user
Markets(1)
Holding
and
Services(1)
Total
reporting
segment
Eliminations
and
adjustments
Total
2022
Total IFRS 15 revenue
37,154
7,863
20,854
63,476
1,993
131,340
(28,692)
102,648
Sale of commodities under
contracts with physical settlement
Gain/(Loss) on the measurement
of commodity sales contracts with
physical settlement closed during
the period
Other revenue
Total revenue from sales and
services
Other income
TOTAL REVENUE
42,667
(4,240)
-
-
-
6
-
-
26
(20)
-
-
42,693
(5,446)
37,247
(4,260)
-
(4,260)
13
1
22
42
(24)
18
75,581
7,869
20,867
63,483
2,015
169,815
(34,162)
135,653
754
1,298
2,165
867
35
5,119
(255)
4,864
76,335
9,167
23,032
64,350
2,050
174,934
(34,417)
140,517
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Notes to the consolidated financial statements
329
Costs
12.a Electricity, gas and fuel – €46,270 million
Millions of euro
Electricity
- of which purchases under contracts with physical settlement (IFRS 9)
Gas
- of which purchases under contracts with physical settlement (IFRS 9)
Fair value gain/(loss) on contracts for purchase of electricity and gas with
physical settlement closed during the period
Nuclear fuel
Other fuels
Total
2023
24,098
2,884
16,583
8,063
1,940
99
3,550
2022
47,155
6,161
47,930
33,092
(2,140)
111
3,840
Change
(23,057)
(3,277)
(31,347)
(25,029)
4,080
(12)
(290)
46,270
96,896
(50,626)
-48.9%
-53.2%
-65.4%
-75.6%
-
-10.8%
-7.6%
-52.2%
“Electricity” purchases decreased due to a decrease in
volumes purchased and a decline in average prices com-
pared with the previous year, mainly attributable to Italy
(€17,942 million) and Spain (€4,833 million).
The decrease in costs for “gas” purchases mainly reflects
the decrease in average prices for gas purchases, which
also had a significant impact on the measurement of con-
tracts with physical settlement, as well as the decrease in
volumes handled, mainly in Italy and Spain.
The item also includes charges of €515 million recognized
related to the settlement of an arbitration dispute with a
Qatari gas supplier in Spain.
Results of the fair value measurement of purchases of gas
under contracts with physical settlement closed increased
by €4,080 million compared with the previous year, of
which €3,311 million attributable to gas and €769 million
to electricity.
The decrease in “other fuels” is mainly attributable to the
decrease in volumes purchased.
12.b Services and other materials – €18,304 million
Millions of euro
Wheeling
Maintenance and repairs
Telephone and postal costs
Communication services
IT services
Leases and rentals
Other services
Environmental certificates not used for compliance
- of which purchases under contracts with physical settlement (IFRS 9)
Fair value gain/(loss) on contracts for purchase of environmental certificates
with physical settlement closed during the period
Change in inventories of environmental certificates
Other materials
Total
2023
7,781
1,134
168
120
840
534
4,980
1,002
725
1
(593)
2,337
18,304
2022
8,247
1,067
181
117
872
503
5,707
963
868
135
(97)
2,533
20,228
Change
(466)
67
(13)
3
(32)
31
(727)
39
(143)
(134)
(496)
(196)
(1,924)
-5.7%
6.3%
-7.2%
2.6%
-3.7%
6.2%
-12.7%
4.0%
-16.5%
-99.3%
-
-7.7%
-9.5%
Costs for services and other materials amounted to
€18,304 million in 2023, a decrease of €1,924 million com-
pared with 2022. This change essentially reflected:
• a decrease of €466 million in costs for “wheeling”,
mainly due to lower volumes in Italy and lower prices
in Spain;
• a decrease of €727 million in “other services” essentially
reflecting the decrease in costs for services connected
330 Integrated Annual Report 2023
with the electricity and gas business (€371 million) and
those related to concessions in Brazil (€353 million);
• a decrease in costs of environmental certificates, in-
cluding the change in inventories, essentially related to
lower purchases of CO2 allowances;
• a decrease in “other materials” mainly attributable to
procurement costs due to changes in the consolida-
tion scope.
12.c Personnel expenses – €5,030 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
Personnel expenses in 2023 amounted to €5,030 million,
an increase of €460 million.
The Group’s workforce decreased by 4,069 employees,
mainly reflecting the negative balance between new hires
and terminations (201 employees) adding to negative
changes in the consolidation scope (-3,868 employees),
essentially attributable to:
• the sale of Enel Generación Costanera SA in Argentina;
• the sale of Central Dock Sud SA in Argentina;
• the sale of Usme ZE SAS and Fontibón ZE SAS in Co-
lombia;
• the sale of Avikiran Solar India Private Limited in India;
• the sale of Enel Green Power Australia in Australia;
• the sale of all Romanian companies;
• the sale of Enel Green Power Hellas and all companies
in Greece.
The increase in “wages and salaries” substantially reflects
the cost incurred as a result of new hiring at companies in
Italy, Spain, Chile and Colombia.
No.
Senior managers
Middle managers
Office staff
Blue collar
Total
2023
3,498
903
114
67
42
214
192
2022
3,442
924
107
73
(20)
(151)
195
5,030
4,570
Change
56
(21)
7
(6)
62
365
(3)
460
1.6%
-2.3%
6.5%
-8.2%
-
-
-1.5%
10.1%
The €6 million decrease in “post-employment and other
long-term benefits” is mainly attributable to Latin America
and Spain.
The increase in “early retirement incentives” and “early re-
tirement incentives connected with restructuring agree-
ments” is mainly attributable to an increase in costs in
Spain, following the €177 million adjustment of the pro-
vision for the Acuerdo Voluntario de Salida (AVS) plan, and
in Italy of the provision for restructuring and digitalization
in respect of the framework agreement in application of
Article 4, paragraphs 1-7-ter, of Law 92/2012 signed in
2021, which required a negative adjustment in 2022 and
a positive adjustment in 2023, according to the develop-
ments of the period and changes underlying the actuarial
assumptions.
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, 2023.
Average(1)
2023
1,374
12,589
33,906
16,527
64,396
2022
1,389
12,528
35,676
16,883
66,476
Headcount(1)
at Dec. 31, 2023
1,310
12,389
31,308
16,048
61,055
(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel’s percentage share of the total.
Notes to the consolidated financial statements
331
12.d Net impairment/(reversals) on trade receivables and other receivables – €1,334
million
Millions of euro
Impairment losses on trade receivables
Impairment losses on other financial assets
Total impairment losses on trade receivables and other financial assets
Impairment gains on trade receivables
Impairment gains on other financial assets
Total impairment gains on trade receivables and other financial assets
NET IMPAIRMENT/(REVERSALS) ON TRADE RECEIVABLES AND OTHER
FINANCIAL ASSETS
2023
1,384
162
1,546
(210)
(2)
(212)
1,334
2022
1,375
169
1,544
(265)
(1)
(266)
1,278
Change
9
(7)
2
55
(1)
54
56
0.7%
-4.1%
0.1%
20.8%
-
20.3%
4.4%
The item, equal to €1,334 million, includes impairment
losses and reversals on trade receivables and other finan-
cial assets. The net impairment losses on trade receivables
are essentially in line with the previous year.
12.e Depreciation, amortization and other impairment losses – €8,089 million
Millions of euro
Property, plant and equipment
Investment property
Intangible assets
Other impairment losses
Other reversals of impairment losses
Total
2023
4,674
2
1,677
1,792
(56)
8,089
2022
4,472
2
1,612
1,414
(53)
7,447
Change
202
-
65
378
(3)
642
4.5%
-
4.0%
26.7%
-5.7%
8.6%
The change in “depreciation, amortization and other im-
pairment losses” essentially reflected:
• higher depreciation and amortization due to new capi-
tal expenditure, mainly in the sector of renewable ener-
gy and distribution;
• the impairment losses on a number of renewables gen-
eration companies (€1,268 million) in North America,
mainly attributable to the deterioration in the outlook
for certain markets, which was consolidated over the
course of 2023, accompanied by a general deteriora-
tion in macroeconomic conditions as well as redefined
strategic and restructuring plans in the area;
• impairment losses recognized in 2023 on the assets of
Enel X and Enel X Way (totaling €126 million) in North
America;
• the impairment loss of €171 million on the Windpeshi
wind project in Colombia as it was classified as held for
sale;
• the value adjustments in 2022 of the net assets of Celg
Distribuição SA - Celg-D (Enel Goiás) (€827 million), CGT
Fortaleza (€73 million) in Brazil, and net assets of Enel
Generación Costanera SA (€174 million) and Central
Dock Sud SA (€116 million) in Argentina.
332 Integrated Annual Report 2023
12.f Other operating costs – €6,125 million
Millions of euro
System charges – Environmental certificates(1)
Other costs connected with electrical and gas system
Other taxes and duties
Capital losses and other costs on the disposal of equity investments
Extraordinary solidarity levies
Other
Total
2023
2,603
568
1,529
404
208
813
2022
2,510
172
1,107
363
-
533
Change
93
396
422
41
208
280
6,125
4,685
1,440
3.7%
-
38.1%
11.3%
-
52.5%
30.7%
(1) For more on “System charges – Environmental certificates”, please see note 58 “Environmental programs”.
Other operating costs increased by €1,440 million com-
pared with the previous year due to the following.
“Other costs connected with electrical and gas system”
increased by €396 million, mainly due to:
• the increased impact of the Bono Social in Spain (€246
million), mainly attributable to the recognition in 2022
of an indemnity of €152 million following Supreme
Court ruling no. 202/2022;
• an increase in indemnities and penalties connected
with service quality in Italy provided for under the Regu-
latory Authority for Energy, Networks and Environment
(ARERA) Resolution no. 566/2019/R/eel charged to dis-
tributors (€118 million).
“Other taxes and duties” increased by €422 million, main-
ly due to the clawback mechanism in Italy (€357 million)
introduced with Decree Law 25 of March 28, 2022 and in
Spain (€118 million) as a result of Royal Decree 17/2021.
The change was partly offset by a decrease in charges for
the occupation of public land in Spain (€76 million) as a
result of a reduction in fees.
12.g Capitalized costs – €(3,385) million
Millions of euro
Personnel
Materials
Other
Total
Capitalized costs are in line with the previous year.
“Capital losses and other costs on the disposal of equity
investments” in 2023 mainly include the capital losses on
the disposal of Enel Generación Costanera (€132 million)
and Central Dock Sud (€194 million) in Argentina and the
price adjustment in respect of the disposal of Celg Dis-
tribuição SA - Celg-D (Enel Goiás) (€23 million). In 2022
the item mainly referred to capital losses recognized for
the disposal of Enel Goiás (€208 million) and CGT Fortale-
za (€135 million) in Brazil.
“Extraordinary solidarity levies” regard the extraordinary
solidarity levy recognized, in 2023, in Spain (€208 million)
following the approval of Law 38 of December 27, 2022.
The increase in “other” operating costs is mainly attrib-
utable to an increase in provisions for risks and charges
recognized by Enel Insurance in response to claims con-
nected with adverse weather events.
2023
(1,120)
(1,338)
(927)
(3,385)
2022
(1,184)
(1,258)
(973)
(3,415)
Change
64
(80)
46
30
5.4%
-6.4%
4.7%
0.9%
Notes to the consolidated financial statements
333
13. Net results from commodity contracts – €(2,966) 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/(expense) from outstanding commodity derivatives
Outstanding contracts for energy commodities with physical settlement
- results from outstanding contracts to sell energy commodities with
physical settlement
- results from outstanding contracts to purchase energy commodities with
physical settlement
Net results from outstanding contracts for energy commodities with
physical settlement
2023
2022
Change
7,315
9,865
(2,550)
(3,283)
(3,404)
121
389
(926)
(537)
23,124
18,929
4,195
(2,479)
223
(2,702)
(15,809)
(9,064)
(6,745)
(804)
(3,627)
2,823
-68.4%
-47.9%
-
-32.4%
-
-
5,182
(4,793)
-92.5%
(4,310)
3,384
78.5%
872
(1,409)
-
-
NET RESULTS FROM COMMODITY CONTRACTS
(2,966)
2,365
(5,331)
Net results from commodity contracts showed net expense
of €2,966 million in 2023 (net income of €2,365 million in
2022), and break down as follows:
• net expense from commodity derivatives totaling
€2,429 million (net income of €1,493 million in 2022), in-
cluding derivatives designated as cash flow hedges and
derivatives measured at fair value through profit or loss.
More specifically, net expense from derivatives settled
in the period amounted to €2,550 million (net income
of €4,195 million in 2022) and net income from the fair
value measurement of outstanding derivatives came to
€121 million (net expense of €2,702 million in 2022);
• net expense from the fair value measurement through
profit or loss of energy commodity contracts with phys-
ical settlement still outstanding at the reporting date
amounting to €537 million (net income of €872 million
in 2022).
For more information on derivatives, please see note 51
“Derivatives and hedge accounting”.
14. Net financial income/(expense) from derivatives – €(609) 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
2023
2022
Change
756
802
1,558
(1,254)
(913)
(2,167)
1,442
1,676
3,118
(1,744)
(1,670)
(3,414)
(686)
(874)
(1,560)
490
757
1,247
-47.6%
-52.1%
-50.0%
28.1%
45.3%
36.5%
NET FINANCIAL INCOME/(EXPENSE) FROM DERIVATIVES
(609)
(296)
(313)
-
In 2023 net expense from derivatives on interest and ex-
change rates amounted to €609 million (net expense of
€296 million in 2022) and breaks down as follows:
• net expense from derivatives designated as hedging
derivatives in the amount of €498 million (net expense
of €302 million in 2022) mainly in regard of cash flow
hedges;
• net expense from derivatives at fair value through profit
or loss in the amount of €111 million (net income of €6
million in 2022).
334 Integrated Annual Report 2023
The net balances recognized in 2023 and 2022 on both
hedging derivatives and those at fair value through profit
or loss mainly referred to the hedging of exchange rate
risk. For more information on derivatives, please see note
51 “Derivatives and hedge accounting”.
15. Net other financial income/(expense) – €(2,766) million
Other financial income
Millions of euro
Interest income from financial assets (current and non-current):
- interest income at effective rate on non-current financial assets
- interest income at effective rate on current financial investments
Total interest income at the effective interest rate
Financial income on non-current financial assets designated at fair value
through profit or loss
Exchange gains
Income on equity investments
Income from hyperinflation
Other income
TOTAL OTHER FINANCIAL INCOME
2023
2022
Change
289
335
624
-
1,807
3
1,575
482
4,491
158
201
359
-
2,289
1
1,739
781
5,169
131
134
265
-
(482)
2
(164)
(299)
(678)
82.9%
66.7%
73.8%
-
-21.1%
-
-9.4%
-38.3%
-13.1%
Other financial income amounted to €4,491 million, a de-
crease of €678 million on 2022. The change mainly reflects
the following factors:
• a decrease in income from exchange gains (€482 mil-
lion), mainly relating to Enel Finance International (€370
million) and Enel Global Trading (€82 million);
• a decrease in income from hyperinflation (€164 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,
please see note 5 of these consolidated financial state-
ments at December 31, 2023;
• a decrease in other income mainly deriving from the
value adjustment of hedged liabilities in fair value
hedge relationships (€159 million), and the change in
the consolidation scope relating to the disposal of Celg
Distribuição SA - Celg-D (Enel Goiás) (€45 million);
• an increase in interest income at the effective rate
(€265 million).
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
2023
2022
Change
987
2,079
451
3,517
7
1,058
165
255
-
1,291
964
7,257
509
1,884
235
2,628
-
2,179
145
201
-
1,449
727
7,329
478
195
216
889
7
(1,121)
20
54
-
(158)
237
(72)
93.9%
10.4%
91.9%
33.8%
-
-51.4%
13.8%
26.9%
-
-10.9%
32.6%
-1.0%
Notes to the consolidated financial statements
335
Other financial expense amounted to €7,257 million, an
overall decrease of €72 million compared with 2022 es-
sentially reflecting the following factors:
• a decrease in expense from hyperinflation of €158 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,
please see note 5 of these consolidated financial state-
ments at December 31, 2023;
• a decrease in expense on exchange losses of €1,121
million, mainly relating to Enel Finance International
(€733 million) and Enel Global Trading (€217 million);
• an increase in interest expense of €889 million, mainly
attributable to the increase in interest rates;
• an increase in other expenses mainly attributable to
impairment losses on liabilities covered by fair value
hedges (€126 million) and financial expense on the as-
signment of receivables (€102 million).
16. Share of profit/(loss) of equity-accounted investments – €(41) million
Millions of euro
Share of profit of associates(1)
Share of loss of associates
Total(1)
2023
68
(109)
(41)
2022
81
(141)
(60)
Change
(13)
32
19
-16.0%
22.7%
31.7%
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
The share of the net loss of equity-accounted investments
in 2023 came to €41 million, an increase of €19 million on
2022.
The change was essentially due to an increase in the share
of profit/(loss) pertaining to the Group of Slovak Power
Holding (€65 million) and Gridspertise (€9 million), part-
ly offset by the decrease in the share of profit/(loss) of
Mooney (€18 million), PowerCrop (€22 million), Enel Green
Power Australia (€7 million) and Compañía Eólica Tierras
Altas (€7 million).
17. Income taxes – €2,778 million
Millions of euro
Current taxes
Adjustments for income taxes relating to prior years
Total current taxes
Deferred tax expense(1)
Deferred tax income(1)
TOTAL
2023
2,877
(75)
2,802
(197)
173
2,778
2022
3,025
(233)
2,792
318
413
3,523
Change
(148)
158
10
(515)
(240)
(745)
-4.9%
67.8%
0.4%
-
-58.1%
-21.1%
(1) Figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods beginning
on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
Income taxes for 2023 came to €2,778 million and de-
creased by €745 million compared with 2022.
The tax rate for 2023 came to 37%, compared with 41% in
2022.
The decrease mainly reflects the following factors:
• the impact of higher impairment and losses resulting
from mergers and acquisitions in 2022 that were not tax
deductible, essentially regarding Celg Distribuição SA -
Celg-D (Enel Goiás) and CGT Fortaleza in Brazil;
• higher taxes recognized in 2022 in Italy in respect of
the extraordinary energy cost tax, established by Law
51/2022 (about €121 million), and the solidarity tax from
Law 197/2022 (about €599 million);
• the tax effect of hyperinflation in Argentina mainly attrib-
utable, in 2023, to the recognition for tax purposes of
the increase in the value of assets adjusted for hyper-
inflation;
• an increase in tax credit to eliminate dual taxation of div-
idends at Enel Iberia in 2023.
These factors were partially offset by:
• the non-deductibility of the extraordinary solidarity levy
in Spain;
336 Integrated Annual Report 2023
• the reversal of the portion of deferred tax assets no lon-
ger considered recoverable in the United States, Mex-
ico and Peru;
• the tax effect (€190 million) of the sale of interests in
Ufinet, Gridspertise and the finance companies of the
Enel X segment to Mooney in 2022.
For more information on changes in deferred tax assets
and liabilities, please see note 25.
The following table provides a reconciliation of the theo-
retical tax rate and the effective tax rate.
Millions of euro
Pre-tax profit(1)
Theoretical taxes
Delta of tax effect on impairment adjustments and M&A transactions
Preferential tax treatment of Ufinet, Gridspertise and Mooney capital gain
Preferential tax treatment of disposals in Australia and Greece
Deferred tax assets recognized on the carve-out of Enel X Way
Patent Box in Italy
Sundry tax effects of hyperinflation accounting in Argentina
Tax effect of non-deductible provisions for risks in Spain
Write-off of deferred tax assets for Enel Green Power Perú and Enel
Generación Perú merger
Write-off of deferred tax assets for the United States and Mexico
IRAP
Extraordinary energy cost tax
Solidarity tax
Non-deductibility of extraordinary solidarity levy in Spain
Other differences, effect of different tax rates abroad compared with the
theoretical rate in Italy, and other minor items
2023
7,416
1,780
24%
195
-
(63)
-
-
(58)
-
25
155
352
-
-
52
340
2022
8,677
2,082
420
(190)
24%
-
(60)
(65)
30
30
-
-
260
121
599
-
296
Total
2,778
3,523
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
18. Basic and diluted earnings 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 trea-
sury shares held.
The number of treasury shares, with a par value of €1
each, held at December 31, 2023 was equal to 9,262,330
(7,153,795 at December 31, 2022).
Notes to the consolidated financial statements
337
Millions of euro
Profit for the year attributable to owners of the Parent (basic)
of which from:
- continuing operations(1)
- discontinued operations(1)
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(1)
- discontinued operations(1)
Number of shares (units)
2023
3,438
3,813
(375)
-
(182)
-
3,256
3,631
(375)
2022
1,682
3,573
(1,891)
-
(123)
-
1,559
3,450
(1,891)
Number of ordinary shares issued at 1 January
10,166,679,946
10,166,679,946
Effect of treasury shares held
Effect of share options exercised
Other
(7,696,284)
422,896
-
(6,287,027)
145,119
-
Weighted average number of ordinary shares outstanding (total) for basic
earnings per share
10,159,406,558
10,160,538,038
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)
3,256
-
-
3,256
3,631
(375)
1,559
-
-
1,559
3,450
(1,891)
Weighted average number of ordinary shares outstanding (total) for basic
earnings per share
10,159,406,558
10,160,538,038
Effect of conversion of convertible notes
Other
-
-
-
-
Weighted average number of ordinary shares outstanding (total) for
diluted earnings per share
10,159,406,558
10,160,538,038
Basic earnings per share
Basic earnings per share
Basic earnings per share from continuing operations
Basic earnings per share from discontinued operations
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share from continuing operations
Diluted earnings per share from discontinued operations
0.32
0.36
(0.04)
0.32
0.36
(0.04)
0.15
0.34
(0.19)
0.15
0.34
(0.19)
(1) The figure for 2022 has been adjusted to reflect the classification of the “Share of profit/(loss) of equity-accounted investments” referring to Rusenergo-
sbyt LLC, a Russian company sold in December 2023, to “discontinued operations”.
338 Integrated Annual Report 2023
Information on the statement of consolidated financial position
19. Property, plant and equipment – €89,801 million
The breakdown of and changes in property, plant and
equipment for 2023 is given below.
Millions of euro
Land
Buildings
Plant and
machinery
Industrial and
commercial
equipment
Other
assets
Leased
assets
Leasehold
improvements
Assets under
construction
and advances
Total
11,606
165,370
572
1,439
4,021
Cost net of accumulated
impairment losses
Accumulated depreciation
Balance at Dec. 31, 2022
Capital expenditure
Assets entering service
Exchange differences
Change in the
consolidation scope
Disposals
Depreciation
Impairment losses
Impairment gains
Leases
Other changes
629
-
629
4
31
11
2
(2)
-
(1)
-
-
(1)
5,719
5,887
47
1,189
(22)
8
(2)
(219)
(230)
1
-
(92)
100,685
64,685
2,182
6,085
(933)
33
(106)
(3,857)
(1,149)
30
-
879
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment losses
(43)
1
(270)
(2,590)
410
574
630
12,084
167,123
Accumulated depreciation
Balance at Dec. 31, 2023
-
630
5,787
6,297
101,864
65,259
Plant and machinery included assets to be relinquished
free of charge with a carrying amount of €9,538 million
(€8,409 million at December 31, 2022), largely regarding
power plants in Iberia and Latin America amounting to
€4,068 million (€3,456 million at December 31, 2022) and
the electricity distribution grid in Latin America totaling
€4,470 million (€4,228 million at December 31, 2022).
Millions of euro
Power plants:
- thermal
- hydroelectric
- geothermal
- nuclear
- alternative energy sources
Total power plants
Electricity distribution grids(1)
Enel X (e-City, e-Industries, e-Home)
Enel X Way (e-Mobility)
Retail customers
Other
TOTAL
409
163
27
6
(1)
-
(1)
(23)
-
-
-
(1)
(1)
6
592
423
169
1,147
292
1,259
2,762
86
56
(26)
-
(31)
(81)
-
-
-
6
(5)
5
1
4
(23)
(6)
(63)
(337)
-
-
684
3
(161)
102
1,456
4,318
1,159
1,454
297
2,864
547
408
139
4
29
-
-
(1)
(34)
-
-
-
(1)
-
(3)
572
436
136
13,964
198,148
-
109,627
13,964
88,521
8,213
10,564
(7,365)
35
(464)
(1,458)
3
20
-
40
(186)
(4,551)
(186)
(1,566)
8
-
39
684
460
1,253
(504)
(3,574)
185
1,280
14,149 200,924
-
111,123
14,149
89,801
For more information on “leased assets”, please see note
21 below.
Capital expenditure came to €11,919 million, of which
10,564 million in “property, plant and equipment”, and
€1,355 million in “intangible assets” (for more details see
note 23). The types of capital expenditure made during
2023 are summarized below by class of asset.
2023
2022
Change
550
458
136
163
3,444
4,751
4,485
449
106
617
1,511
11,919
659
435
121
134
5,147
6,496
4,373
373
113
721
1,097
13,173
(109)
23
15
29
(1,703)
(1,745)
112
76
(7)
(104)
414
(1,254)
-16.5%
5.3%
12.4%
21.6%
-33.1%
-26.9%
2.6%
20.4%
-6.2%
-14.4%
37.7%
-9.5%
(1) The figure for 2023 does not include €795 million in respect of infrastructure investments within the scope of IFRIC 12 (€1,174 million in 2022).
Notes to the consolidated financial statements
339
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 sourc-
es. Capital expenditure on thermal generation plants de-
creased mainly in Latin America and Italy.
Capital expenditure on the distribution grid were substan-
tial; in particular, higher investments in Italy, mainly for cor-
rective maintenance and grid reliability, were partly offset
by lower investments in Brazil, Romania, Peru, Argentina
and Chile.
The decrease in capital expenditure in the Retail business
in Italy, Spain and Romania is essentially attributable to
a decrease in digitalization activities of operational pro-
cesses in customer management.
The growth of capital expenditure of Enel X mainly regards
the e-City and the Distributed Energy businesses in Italy
and the e-City business in Brazil.
Impairment losses in 2023 amounted to €1,566 million, of
which €1,234 million are attributable to the value adjust-
ment of photovoltaic and wind plants in the United States,
operating in a progressively deteriorating macroeconom-
ic context and in local markets characterized by the per-
sistence of disadvantageous conditions for the dispatch-
ing of power, as well as the initiation and implementation
by management of specific restructuring plans in the
country, which have had a significant impact on the recov-
erable values of those assets. The above circumstances
constituted evidence of low margins, which, following IAS
36 impairment testing, indicate that their carrying amount
cannot be completely recovered.
Impairment losses in 2023 also include value adjustments
of thermal generation assets in the non-peninsular terri-
Millions of euro
EGP North America
EGP México
EGP South Africa
Enel Américas Group
Enel Chile Group
Endesa Group
Enel Italia Group
Nuove Energie
Total
tories in Spain (€91 million), in line with the decarboniza-
tion process pursued by the Group, and the value adjust-
ment of Windpeshi wind project in Colombia (€171 million)
as a result of the implementation of a disposal program for
the related assets, which prompted their classification as
assets held for sale.
Impairment gains of €39 million mainly regards generation
assets in Colombia of Sociedad Portuaria Central Cartage-
na SA, which had been written down in 2022 to reflect their
realizable value.
“Reclassifications from/to assets held for sale” refer main-
ly to electricity distribution and supply assets held by Enel
Distribución Perú SAA in Peru, generation assets held by
Enel Generación Perú, Compañía Energética Veracruz,
and Enel Generación Piura, a portfolio of renewables as-
sets consisting of about 150 MW of geothermal and solar
plants in North America, whose sale was finalized in Janu-
ary 2024, photovoltaic plants of Arcadia Generación Solar
SA in Chile, sold during 2023, and the Windpeshi wind fa-
cility under development.
“Other changes” include the adjustment of plant decom-
missioning and site restoration costs, which decreased by
€38 million, mainly in Spain, new leases of €684 million,
impairment losses on the property, plant and equipment
of the Argentine companies operating in a hyperinflation-
ary economy in the amount of €872 million and the effect
of capitalizing interest on loans specifically dedicated to
capital expenditure on property, plant and equipment of
€303 million (€251 million in 2022), breaking down as fol-
lows.
2023
Rate %
2022
Rate %
Change
70
16
-
55
90
12
58
2
0.2%
9.8%
-
6.4%
6.0%
3.2%
2.1%
3.3%
83
14
-
41
91
5
8
2
0.5%
7.0%
6.3%
3.2%
6.1%
1.4%
3.2%
1.6%
303
251
(13)
-15.7%
2
-
14
(1)
7
50
-
52
14.3%
-
34.1%
-1.1%
-
-
-
20.7%
At December 31, 2023, contractual commitments to pur-
chase property, plant and equipment came to €4,690 mil-
lion.
340 Integrated Annual Report 2023
20. 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
and Costa Rica and public lighting in Brazil.
The following table summarizes the salient details of those
concessions.
Millions of euro
Amount
recognized
among
intangible
contract
assets at Dec.
31, 2023
Amount
recognized
among
financial
contract
assets at Dec.
31, 2023
Amount
recognized
among
financial
assets at
Dec. 31,
2023
Amount
recognized
among
intangible
assets at
Dec. 31,
2023
Grantor
Activity Country
Concession
period
Concession
period
remaining
Renewal
option
Enel
Distribuição
Rio de Janeiro
Enel
Distribuição
Ceará
Brazilian
government
Electricity
distribution
Brazilian
government
Electricity
distribution
Brazil
1996-2026
3 years
Yes
Brazil
1998-2028
5 years
Yes
Enel Green
Power Mourão
Brazilian
government
Electricity
generation
Brazil
2016-2046
23 years
Brazilian
government
Electricity
generation
Brazil
2016-2046
23 years
No
No
Enel Green
Power
Paranapanema
Enel Green
Power Volta
Grande
Enel
Distribuição
São Paulo
Brazilian
government
Electricity
generation
Brazilian
government
Electricity
distribution
Brazil
2017-2047
24 years
No
Brazil
1998-2028
5 years
Yes
157
Luz de Angra
Energia
Brazilian
government
Luz de
Jaboatão
Energia
Brazilian
government
Luz de Caruaru
Energia
Brazilian
government
Luz de
Cataguases
Brazilian
government
Public
lighting
Public
lighting
Public
lighting
Public
lighting
Brazil
2021-2036
13 years
Yes(1)
Brazil
2023-2045
21 years
Yes(1)
Brazil
2023-2043
19 years
Yes(1)
Brazil
2023-2048
24 years
Yes(1)
Costa Rican
Electricity
Institute
Hydroelectric
plant
Costa
Rica
2012-2031
8 years
No
PH Chucas
Total
(1) Limited to 35 years.
134
134
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
5
4
1
-
1,353
439
1,138
466
6
27
291
-
-
-
1,549
722
-
-
-
-
-
-
-
-
40
38
425
13
4,404
1,665
The assets classified under financial assets are measured
at fair value at the end of the concessions. For more in-
formation, please see note 52 “Assets and liabilities mea-
sured at fair value”.
21. Leases
The table below shows changes in right-of-use assets in 2023.
Millions of euro
Total at Dec. 31, 2022
Increases
Exchange differences
Depreciation
Other changes
Total at Dec. 31, 2023
Leased land
Leased buildings
Leased plants Other leased assets
1,312
318
(26)
(47)
(69)
1,488
513
270
2
(118)
(35)
632
424
(3)
-
(29)
(114)
278
513
99
1
(143)
(4)
466
Total
2,762
684
(23)
(337)
(222)
2,864
Notes to the consolidated financial statements
341
Lease liabilities and changes during the year are shown in
the table below.
Millions of euro
Total at Dec. 31, 2022
Increases
Payments
Other changes
Total at Dec. 31, 2023
of which medium to long term
of which short term
Note that in 2023 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
22. Investment property – €97 million
Millions of euro
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2022
Exchange differences
Depreciation
Impairment losses
Other changes
Total changes
Cost net of accumulated impairment losses
Accumulated depreciation
Balance at Dec. 31, 2023
2,672
677
(406)
(38)
2,905
2,638
267
2023
346
128
46
-
29
549
116
22
94
-
(2)
(1)
6
3
114
17
97
Investment property at December 31, 2023 amounted to
€97 million, an increase of €3 million on 2022.
The change in 2023 was mainly due to impairment losses
recognized on a number of assets in Spain, a number of
disposals in Italy and depreciation charges for the period.
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-
erty or for repairs, maintenance or enhancements.
For more information on the valuation of investment prop-
erty, please see notes 52 “Assets and liabilities measured
at fair value”, and 52.2 “Assets not measured at fair value in
the statement of financial position”.
342 Integrated Annual Report 2023
23. Intangible assets – €17,055 million
A breakdown of and changes in intangible assets for 2023
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
101
3,697
12,646
5,261
5,279
22
79
3
2
1
-
-
(5)
(3)
-
(47)
(4)
(53)
55
29
26
3,034
1,851
3,761
3,847
663
30
300
(4)
-
(2)
10,795
1,500 1,432
45
8
220
1
-
-
-
72
-
(18)
122
209
(4)
-
-
(313)
(199)
(402)
(342)
-
-
50
(49)
12
1
-
(10)
(590)
(524)
-
-
513
(1)
2
-
-
(44)
165
(58)
3,988
12,401
5,822
5,513
3,313
2,130
4,157
4,139
675
10,271
1,665 1,374
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,747
2,831 31,562
-
1,527
14,042
1,747
1,304 17,520
640
(564)
(49)
(1)
3
-
(57)
-
(46)
(32)
515
1,355
10
(4)
-
-
(35)
232
-
(17)
(425)
(1,686)
-
-
3
-
(60)
2
463
(719)
(106)
99
(465)
1,641
3,352 32,772
-
1,949
15,717
1,641
1,403 17,055
Millions of euro
Cost net of accumulated
impairment losses
Accumulated
amortization
Balance at Dec. 31, 2022
Capital expenditure
Assets entering service
Exchange differences
Change in the
consolidation scope
Disposals
Amortization
Impairment losses
Impairment gains
Other changes
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment losses
Accumulated
amortization
Balance at Dec. 31, 2023
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, 2023.
Millions of euro
Grantor
Activity
Country
Concession
period
Concession
period remaining
Renewal
option
at Dec. 31,
2023
at Dec. 31,
2022
Initial fair
value
Endesa Distribución
Eléctrica
-
Electricity
distribution
Enel Colombia
(formerly Codensa)
Republic of
Colombia
Electricity
distribution
Enel Distribución Chile
(formerly Chilectra)
Republic of
Chile
Electricity
distribution
Spain
Indefinite
Indefinite
Colombia
Indefinite
Indefinite
Chile
Indefinite
Indefinite
-
-
-
5,677
5,678
5,673
1,266
1,047
1,839
1,254
1,331
1,667
Assets with an indefinite useful life amounted to €8,197
million (€8,056 million at December 31, 2022) essentially
accounted for by concessions for distribution activities
in Spain (€5,677 million), Colombia (€1,266 million) and
Chile (€1,254 million), for which there was no statutory or
currently predictable expiration date. On the basis of the
forecasts developed, cash flows for each CGU, with which
the various concessions are associated, were sufficient to
recover the carrying amount. The change during the year
was essentially attributable to changes in exchange rates
in Latin America. The assets in respect of concession ar-
rangements that do not fall within the scope of IFRIC 12
of Enel Distribución Perú were reclassified as held for sale
in the amount of €581 million (€584 million at December
31, 2022).
Notes to the consolidated financial statements
343
For more information on service concession arrange-
ments, please see note 20.
renewable assets in North America (the latter sold at the
beginning of 2024).
Impairment losses amounted to €60 million in 2023, and
mainly regarded renewable projects no longer considered
strategic in Spain, the United States and Italy.
“Reclassifications from/to assets held for sale” refer main-
ly to assets held by Enel Distribución Perú SAA, Enel Gen-
eración Perú, Compañía Energética Veracruz and other
“Other changes” mainly include the reclassification under
financial assets of investments falling within the scope of
IFRIC 12 in Brazil and the value adjustment of intangible
assets of Argentine companies as a result of the applica-
tion of the accounting standard for financial reporting in
hyperinflationary economies.
24. Goodwill – €13,042 million
Millions of euro
at Dec. 31, 2022
Change in the
consolidation
scope
Exchange
differences
Impairment
losses
Reclassifications
from/to assets
held for sale
Other
changes
Net carrying
amount
8,785
1,148
21
571
518
1,313
26
70
142
70
84
43
581
21
349
13,742
Iberian Peninsula
Chile
Argentina
Peru
Colombia
Brazil
Central America
Enel Green Power North
America
Enel X North America
Enel X Way North America
Enel X Asia Pacific
Enel X Rest of Europe(1)
Market Italy(2)
Enel Green Power Italy
Enel Produzione Italy
Total
(1)
(2)
Includes Viva Labs.
Includes Enel Energia.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
(1)
8
44
-
(2)
(4)
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
(57)
(69)
-
-
-
-
-
-
(46)
-
(570)
-
-
-
-
-
-
-
-
-
-
42
(126)
(616)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
at Dec. 31, 2023
Net carrying
amount
8,785
1,101
20
-
526
1,357
26
68
81
-
84
43
581
21
349
13,042
The following table presents the allocation of goodwill
in the matrix of business lines and geographical areas.
Note that the changes in the presentation of operating
segments, described in note 10 above, did not produce
changes in the allocation of goodwill for the purposes of
impairment testing.
344 Integrated Annual Report 2023
Goodwill matrix at Dec. 31, 2023
Millions of euro
Enel Green Power Italy
Market Italy(1)
Enel Produzione Italy
Iberian Peninsula
Argentina
Brazil
Chile
Colombia
Peru
Central America
Enel Green Power North America
Enel X North America
Enel X Way North America
Enel X Asia Pacific
Enel X Rest of Europe(2)
Total
(1)
(2)
Includes Enel Energia.
Includes Viva Labs.
Goodwill matrix at Dec. 31, 2022
Millions of euro
Enel Green Power Italy
Market Italy(2)
Enel Produzione Italy
Iberian Peninsula
Argentina
Brazil
Chile
Colombia
Peru
Central America
Enel Green Power North America
Enel X North America
Enel X Way North America
Enel X Asia Pacific
Enel X Rest of Europe(3)
Total
Thermal
Generation and
Trading
Enel Green
Power
Enel Grids
End-user
Markets
Holding and
Services
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21
-
349
1,190
1
502
949
303
-
26
68
-
-
-
-
-
-
-
-
581
-
5,788
1,807
19
855
152
223
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81
-
84
43
3,409
7,037
2,596
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Thermal
Generation and
Trading
Enel Green
Power
Enel Grids
End-user
Markets(1)
Holding and
Services(1)
-
-
-
-
-
-
-
-
44
-
-
-
-
-
-
21
-
349
1,190
2
478
996
295
207
26
70
-
-
-
-
-
-
-
-
581
-
5,788
1,807
19
835
152
223
320
-
-
-
-
-
-
-
-
-
-
-
-
-
142
70
84
43
44
3,634
7,337
2,727
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
21
581
349
8,785
20
1,357
1,101
526
-
26
68
81
-
84
43
13,042
Total
21
581
349
8,785
21
1,313
1,148
518
571
26
70
142
70
84
43
13,742
(1) The figures for 2022 for the End-user Market Business Line have been adjusted to take account of the values for Enel X and Enel X Way. The latter had
previously been reported under Holding, Services and Other.
Includes Enel Energia.
Includes Viva Labs.
(2)
(3)
Notes to the consolidated financial statements
345
The decrease of €700 million in goodwill was mainly at-
tributable to Peru for the reclassification as assets held for
sale of generation and distribution assets (€570 million),
and Chile for the reclassification to assets held for sale of
Arcadia Generación Solar (€46 million).
New impairment losses were also recognized in 2023 in
respect of the CGUs in North America of Enel X and Enel
X Way (€57 and €69 million, respectively) following impair-
ment testing conducted in response to changes in macro-
economic conditions.
The decrease is partly offset by exchange gains recog-
nized in Brazil.
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, 2023, containing forecasts for volumes, revenue,
operating costs, capital expenditure, industrial and
commercial organization and developments in the main
macroeconomic 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) pow-
er generation and of distribution, in which the licenses
and public concessions are of a long-term nature and
renewal can be forecast with reasonable certainty; as
well as for the Enel X and Enel X Way 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 (Genera-
tion and Trading). This method is also used for the re-
newable energy (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 in-
terconnectivity.
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).
Regarding the assumptions for commodity price develop-
ments, the scenarios adopted are consistent with current
emissions reductions targets.
Note also that the Group has used sensitivity analysis to
take account of the impacts of climate change in the long
term. More specifically:
• we consider a perpetual long-term growth rate for
cash flows after the explicit period that is in line with the
change in electricity demand over the 2026-2050 pe-
riod, based on the specific features of the businesses
concerned, adopting certain assumptions concerning
the increase in temperature due to climate change and
trends connected with the energy transition;
• we consider changes in the hydroelectric, wind and
photovoltaic generation levels of our Portfolio assets,
associated with each projection of underlying climate
and weather variables (for example, temperature, irra-
diance, wind speed and precipitation);
• we assume that the Group will incur the costs provi-
sioned for decommissioning fossil fuel generation
plants in line with the goal of zero direct (Scope 1) and
indirect emissions from retail activities (Scope 3).
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 and the long-term
growth rate.
Even in these circumstances, results were consistent with
the evidence described previously, finding that for all the
CGUs analyzed, with the exception of those written down
(Enel X North America and Enel X Way North America), the
value in use exceeded the carrying amount, ensuring the
full recoverability of the carrying amounts of those assets
in the consolidated financial statements of the Enel Group
at December 31, 2023.
346 Integrated Annual Report 2023
OUR ZERO-EMISSIONS
AMBITION
Enel is committ ed to achieving zero emissions by 2040
and to developing a business model that is in line
with the objectives of the Paris Agreement (COP 21)
to limit the average increase in global temperatures
to 1.5 ºC. For this reason, the Group has developed a
decarbonatization roadmap that covers both direct
and indirect emissions throughout the value chain. The
roadmap includes four targets cert ifi ed by the Science
Based Targets initiative (SBTi) in December 2022 to be
in line with the Net Zero Standard.
GHG TARGET
Intensity of Scope 1 GHG emissions related to power generation
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Electricity generation
Direct
• Customers and power consumers
• Society and environment
95% of Scope 1 GHG emissions(2)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
125 gCO2eq/kWh
72 gCO2eq/kWh
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-66%
-22%
-80%
-55%
0 gCO2eq/kWh
Zero emissions
-100%
-100%
Climate scenario
1.5 °C(3)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
• Continue the process of decarbonizing
• Exit from the thermal electricity
generation business, achieving a 100%
renewable energy mix.
• No use of carbon-removal technologies
to achieve the target.
electricity generation, with Group
investments raising the proport ion of
renewables plants in the asset port folio
to about 85% in 2030, with zero-
emissions generation amounting to 90%
of the total, including consolidated and
managed generation.
• Exit from coal-fi red generation, which is
expected to take place by 2027 globally.
• No use of carbon-removal technologies
to achieve the target.
Primary drivers and
actions
• Gradual phase out of coal-fi red capacity
in 2024-2026, with planned closure of
the Federico II and Torrevaldaliga Nord
plants in Italy (with a total capacity of
about 3.6 GW).
• Invest €12.1 billion to accelerate the
development of renewable energy by
installing 13.4 GW of new renewables
capacity (about 11.3 GW of which at
the consolidated level) in 2024-2026,
reaching 73 GW of renewables capacity
(including BESS) by 2026.
• Continue the process of decarbonizing
electricity generation, with the
proport ion of renewables plants in the
Enel asset port folio reaching 78% in
2026, with zero-emissions generation
amounting to 86% of the total, including
consolidated and managed generation.
• No use of carbon-removal technologies
to achieve the target.
Results and
main actions in
2023
KPI achievement in 2023: 160 gCO2eq/kWh
• About €5.9 billion invested in renewables in 2023.
• New consolidated renewables capacity installed equal to 4 GW in 2023, bringing total consolidated capacity to 55.5 GW in
2023.
• Increase in consolidated renewables generation equal to 13% on 2022, representing 61% of total consolidated generation in
2023.
• Reduction of thermal capacity by about 5.1 GW on 2022, including the closure of two coal-fi red plants (for a total of about 2
GW) and the sale of gas plants in Argentina (for a total of about 3 GW) and Colombia (for a total of about 0.2 GW).
• Reduction of thermal generation by 38% on 2022 (specifi cally, with a 45% reduction in coal-fi red generation), representing 27%
of total generation in 2023.
Notes to the consolidated financial statements
347
GHG TARGET
Intensity of Scope 1 and Scope 3 GHG emissions related to Integrated Power
GHG TARGET
Scope 3 GHG emissions related to the sale of natural gas on end-user market
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Sale of electricity
• Direct (electricity generation)
• Upstream in value chain (purchase of electricity from other generators for sale to end users)
• Customers and power consumers
• Electricity generators (peers)
• Society and environment
• 95% of Scope 1 GHG emissions
• 42% of Scope 3 GHG emissions (corresponding to 78% of Scope 3 GHG emissions – category 3)
Short term (2026)
Medium term (2030)
Long term (2040)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
20.0 MtCO2eq
11.4 MtCO2eq
GHG target
135 gCO2eq/kWh
73 gCO2eq/kWh
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-59%
-20%
-78%
-57%
0 gCO2eq/kWh
Zero emissions
-100%
-100%
Climate scenario
1.5 °C(3)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
Primary drivers and
actions
• Increase the percentage of renewable
• Continue the strategy of balancing
• By 2040, achieve 100% of electricity
supply and demand and increase the
share of electricity sold at a fi xed price
covered by carbon-free generation.
sales covered by renewables.
• No use of carbon-removal
technologies to achieve the target.
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
to about 90% of the total in 2030.
• No use of carbon-removal
technologies to achieve the target.
energy sold to customers, while
increasing the Group’s renewables
production and optimizing customer
port folio, continuing supply and
demand balancing strategy.
• In Europe, increase the share of
fi xed-price energy sales to end users
covered by zero-emissions sources
from about 65% in 2023 to more than
80% in 2026.
• In Latin America, maintain 100%
zero-emissions sales to end users
(including through PPAs).
• In Nort h America, maintain 100% zero-
emissions sales to end users.
• Continue the process of
decarbonizing electricity generation,
increasing zero-emissions generation
from 75% in 2023 (including managed
capacity) to 86% of total in 2026,
including consolidated and managed
capacity.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
2023
• 13% increase in Group consolidated renewables generation in 2023 on 2022.
• 7% reduction in 2023 compared with 2022 in the gap between sale of electricity to end users and own generation in the
countries in which the Group has an integrated position.
KPI achievement in 2023: 168 gCO2eq/kWh
348 Integrated Annual Report 2023
Sale of gas to end users
• Downstream in value chain
• Gas customers
• Society and environment
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
• 30% of Scope 3 GHG emissions (corresponding to 100% of Scope 3 GHG emissions – category 11)
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-21%
-(4)
-55%
-32%
Climate scenario
n.a.(5)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
Primary drivers and
actions
• Encourage customers (especially
• Encourage customers (especially
• By 2040, achieve 100% of energy sales
residential customers) to switch
residential customers) to switch
covered by renewables.
• Exit retail gas sales business by 2040.
• No use of carbon-removal
technologies to achieve the target.
0 MtCO2eq
Zero emissions
-100%
-100%
from gas to electricity by promoting
from gas to electricity by promoting
effi cient electricity technologies
effi cient electricity technologies
(e.g., heat pumps for home heating
(e.g., heat pumps for home heating
or induction cooktops in kitchens),
or induction cooktops in kitchens),
increasing annual unit electricity
increasing annual unit electricity
consumption of free-market B2C
consumption of free-market B2C
power customers (in Italy and Iberia)
power customers (in Italy and Iberia)
from 2.65 MWh in 2023 to about 2.9
to about 3.5 MWh in 2030, thereby
MWh in 2026, thereby increasing the
increasing the electrifi cation rate of
electrifi cation rate of customers.
customers.
• Allocate 32% of investment in grids
• Continue to invest in distribution
in 2024-2026 to connections, part ly
grids, support ing the growth of
with a view to enabling the expansion
distributed generation, thereby
of distributed generation, thereby
promoting the electrifi cation of end
promoting the electrifi cation of
end users’ energy consumption.
The number of connections to
distributed generation is forecast
to double in the period, reaching 4
million in 2026.
• Reduce the volumes of gas sold to
users’ energy consumption, reaching
6 million connections to distributed
generation in 2030.
• Optimize the customer gas port folio
(industrial customers in part icular),
continuing to reduce the volume of
gas sold to about 5.3 billion cubic
customers to around 8.4 billion cubic
meters in 2030.
meters in 2026.
• No use of carbon-removal
technologies to achieve the target.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
2023
• 6.2 million gas customers in 2023, down 6% on 2022.
• Gas sales in 2023 equal to 8.3 billion cubic meters, down 19% on 2022.
• 3.6 million new connections in 2023.
KPI achievement in 2023: 16.8 MtCO2eq
GHG TARGET
Scope 3 GHG emissions related to the sale of natural gas on end-user market
Primary business
activity
Type of activity in
value chain
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
Time frame
Sale of gas to end users
• Downstream in value chain
• Gas customers
• Society and environment
• 30% of Scope 3 GHG emissions (corresponding to 100% of Scope 3 GHG emissions – category 11)
Short term (2026)
Medium term (2030)
Long term (2040)
GHG target
20.0 MtCO2eq
11.4 MtCO2eq
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-21%
-(4)
-55%
-32%
0 MtCO2eq
Zero emissions
-100%
-100%
Climate scenario
n.a.(5)
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
• By 2040, achieve 100% of energy sales
covered by renewables.
• Exit retail gas sales business by 2040.
• No use of carbon-removal
technologies to achieve the target.
Primary drivers and
actions
• Encourage customers (especially
residential customers) to switch
from gas to electricity by promoting
effi cient electricity technologies
(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
from 2.65 MWh in 2023 to about 2.9
MWh in 2026, thereby increasing the
electrifi cation rate of customers.
• Allocate 32% of investment in grids
in 2024-2026 to connections, part ly
with a view to enabling the expansion
of distributed generation, thereby
promoting the electrifi cation of
end users’ energy consumption.
The number of connections to
distributed generation is forecast
to double in the period, reaching 4
million in 2026.
• Reduce the volumes of gas sold to
customers to around 8.4 billion cubic
meters in 2026.
• No use of carbon-removal
technologies to achieve the target.
• Encourage customers (especially
residential customers) to switch
from gas to electricity by promoting
effi cient electricity technologies
(e.g., heat pumps for home heating
or induction cooktops in kitchens),
increasing annual unit electricity
consumption of free-market B2C
power customers (in Italy and Iberia)
to about 3.5 MWh in 2030, thereby
increasing the electrifi cation rate of
customers.
• Continue to invest in distribution
grids, support ing the growth of
distributed generation, thereby
promoting the electrifi cation of end
users’ energy consumption, reaching
6 million connections to distributed
generation in 2030.
• Optimize the customer gas port folio
(industrial customers in part icular),
continuing to reduce the volume of
gas sold to about 5.3 billion cubic
meters in 2030.
• No use of carbon-removal
technologies to achieve the target.
Results and
main actions in
2023
• 6.2 million gas customers in 2023, down 6% on 2022.
• Gas sales in 2023 equal to 8.3 billion cubic meters, down 19% on 2022.
• 3.6 million new connections in 2023.
KPI achievement in 2023: 16.8 MtCO2eq
Notes to the consolidated financial statements
349
GHG TARGET
Additional emissions Scopes 1-2-3
Primary business
activity
• Electricity distribution (Scopes 1 and 2)
• Management of vehicle fl eet, buildings and other assets (Scopes 1 and 2)
• Management of supply chain (Scope 3)
• Purchase of fuels (Scope 3)
Type of activity in
value chain
• Direct (electricity distribution and management of vehicle fl eet, buildings and other Group assets)
• Upstream in value chain (supply chain for products and services and fuel business)
Stakeholders
impacted or
involved
Sources
of covered GHG
(GHG Protocol)(1)
• Customers and power consumers
• Electricity generators (peers)
• Suppliers of goods and services
• Oil&gas suppliers
• Society and environment
• 0.5% of Scope 1 GHG emissions
• 100% of Scope 2 GHG emissions
• Target 2030(6): 15% of Scope 3 GHG emissions (corresponding to 17% of Scope 3 emissions - category 1 and 22%
of Scope 3 emissions - category 3)
• Target 2040(6): 18% of Scope 3 GHG emissions (corresponding to 35% of Scope 3 emissions - category 1 and 22%
of Scope 3 emissions - category 3)
Time frame
Medium term (2030)
GHG target
10.4 MtCO2eq
% reduction on 2017
(SBTi baseline)
% reduction on
2023 (report ing
year)
-55%
-12%
Long term (2040)
<2.5 MtCO2eq
Net zero emissions
-90%
-83%
Climate scenario
1.5 °C (SBTi cert ifi ed)
1.5 °C (SBTi cert ifi ed)
Primary drivers and
actions
• Invest a total of €18.6 billion in grids over the 2024-2026
period, of which 50% to improve grid resilience, quality
and digitalization, thereby helping to reduce grid losses
and related greenhouse gas emissions. Replace existing
distribution grid infrastructure components with SF6-free
solutions.
• Implement a circular procurement approach; increase the
number of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with our suppliers. Strengthen
dialogue with raw material producers and other utilities
to defi ne shared and eff ective long-term decarbonization
strategies.
• Phase out coal-fi red generation by 2027, mitigating all GHG
emissions related to coal supply.
• No use of carbon-removal technologies to achieve the
target.
• Promote grid digitalization and replace existing distribution
grid infrastructure components with SF6-free solutions.
• Implement a circular procurement approach; increase the
number of contracts that include the measurement of the
carbon footprint of the products and services purchased
by Enel, encouraging its reduction in a collaborative
decarbonization process with our suppliers. Strengthen
dialogue with raw material producers and other utilities
to defi ne shared and eff ective long-term decarbonization
strategies.
• Eliminate emissions connected with gas extraction activities,
as the Group has fully exited gas-fi red generation and sale of
gas to end users.
• Neutralize the residual amount through carbon-removal
actions (purchase of cert ifi cates linked to nature-based or
technology-based projects in voluntary carbon markets,
in accordance with international standards) if complete
mitigation of emissions is not feasible due to exogenous
factors (technological, market or regulatory).
KPI achievement in 2023: 11.9 MtCO2eq (for 2017-2030 target scope) and 13.5 MtCO2eq
(for 2017-2040 target scope)(6)
Results and
main actions in
2023
• €5.4 billion invested in the grid in 2023.
• 43% reduction in coal burned in thermal generation plants.
• 41% reduction in volume of gas burned in thermal generation plants compared with 2022 (due also to the sale of gas plants
in Russia and Argentina), and 19% reduction in volume of gas sold to end users compared with 2022.
• 8% reduction in electricity consumption in Group generation plants and buildings.
• 24% reduction in emissions intensity (tCO2eq/€mn) in supply chain in 2023 compared with 2022, reaching 684 tCO2eq/€mn.
350 Integrated Annual Report 2023
TOTAL COVERAGE OF SCOPES 1-2-3
EMISSIONS IN 2023
• 95.5% of Scope 1 GHG emissions (2026, 2030 and 2040 targets)
• 100% of Scope 2 GHG emissions (2030 and 2040 targets)
• 87% (2017-2030 target) and 90% (2017-2040 target) of Scope 3 GHG emissions(6)
(1) Percentages based on total GHG emissions in 2023.
(2) Excludes marginal Scope 1 GHG emissions not directly related to the combustion of fossil fuels in electricity generation at thermal plants. These emissions
also include the use of ancillary services in distribution operations. In part icular, in 2023 there was an extraordinarily high use of these services in Brazil
to deal with the meteorological emergency that occurred in São Paulo in November 2023, which caused the interruption of grid operations. In any event,
95.8% of Scope 1 and Scope 2 GHG emissions are covered by all of the above targets, greater than the 95% threshold required under the Science Based
Targets initiative and the GHG Protocol.
(3) The target is in line with the path to 1.5 °C set by the SBTi for the electrical services industry (Sectoral Decarbonization Approach, or SDA), although it could
(4)
not be offi cially validated because the SBTi does not cert ify targets over a time frame of less than fi ve years from the presentation date.
In 2023, gas sales decreased considerably compared with previous years. Furt hermore, a methodological change in the use of conversion factors has been
implemented. These two factors produced a value below the target expected for 2026.
(5) The target could not be offi cially validated because the SBTi does not cert ify targets over a time frame of less than fi ve years from the presentation date. In
addition, the SBTi has not defi ned a sectoral decarbonization approach for these types of emissions, so the ambition level cannot be verifi ed.
(6) Two diff erent percentage limits have been set for the target for Scope 3 GHG emissions by the supply chain, as allowed under the SBTi approach, which
required coverage of at least 67% of Scope 3 emissions for the 2030 target, and at least 90% for the 2040 target.
Notes to the consolidated financial statements
351
The table below reports the composition of the main
goodwill values for the companies to which the CGU be-
longs, along with the discount rates applied and the time
horizon over which the expected cash flows have been
discounted.
Millions of euro
Amount of
goodwill
Growth
rate(1)
Pre-tax
WACC
discount
rate(2)
Explicit
period of
cash flows
at Dec. 31, 2023
Terminal
value(3)
Amount of
goodwill
Growth
rate(1)
Pre-tax
WACC
discount
rate(2)
Explicit
period of
cash flows
at Dec. 31, 2022
Iberian Peninsula
8,785
2.19%
8.23%
3 years
Chile
1,101
2.07%
9.57%
3 years
Perpetuity/22
years EGP/12
years G&T/15
years MKT
Perpetuity/28
years EGP/5
years G&T
8,785
2.47%
6.10%
3 years
1,148
2.00%
8.45%
3 years
Terminal
value(3)
Perpetuity/25
years EGP/13
years G&T
Perpetuity/26
years EGP/5
years G&T
Argentina
20
17.57%
41.90%
3 years
Perpetuity
21 45.70%
71.78%
3 years
Perpetuity
Peru
n.a.
n.a.
n.a.
n.a.
n.a.
571
2.25%
8.75%
3 years
Colombia
526
3.50%
14.25%
3 years
Brazil
1,357
3.86%
12.31%
3 years
Perpetuity/25
years EGP/14
years G&T
Perpetuity/24
years EGP
518
3.20%
11.79%
3 years
1,313
3.58%
11.22%
3 years
Perpetuity/25
years EGP/8
years G&T
Perpetuity/26
years EGP/15
years G&T
Perpetuity/25
years EGP
Central America
26
2.10%
10.92%
3 years
17 years
26
2.02%
9.66%
3 years
18 years
Enel Green Power
North America
68
2.10%
8.27%
3 years
24 years
70
2.02%
6.48%
3 years
25 years
Enel X North America
81
2.10%
11.75%
3 years
Perpetuity
142
2.02%
9.71%
3 years
Perpetuity
Enel X Way North
America
Enel X Asia Pacific
Enel X Rest of Europe
n.a.
n.a.
n.a.
n.a.
n.a.
70
2.02%
11.53%
3 years
Perpetuity
84
43
2.10%
2.10%
13.27%
3 years
Perpetuity
11.45%
3 years
Perpetuity
84
43
2.02%
1.62%
10.39%
3 years
Perpetuity
8.82%
3 years
Perpetuity
Enel Green Power Italy
21
2.10%
8.66%
3 years
Perpetuity/26
years
21
1.62%
6.39%
3 years
Perpetuity/24
years
Market Italy
581
1.93%
11.31%
3 years
15 years
581
2.38%
10.69%
3 years
15 years
Enel Produzione Italy
349
2.06%
9.07%
3 years
Perpetuity/14
years
349
1.64%
7.70%
3 years
Perpetuity/15
years
Romania
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
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)
Australia
Mexico
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
(1) Perpetual growth rate for cash flows after the explicit forecast period.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
calculated with post-tax cash flows discounted with the post-tax WACC.
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column (G&T = Generation
& Trading, EGP = Enel Green Power, MKT = End-user Markets).
352 Integrated Annual Report 2023
25. Deferred tax assets and liabilities – €9,218 million and €8,217 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, 2022
at
Dec. 31, 2023
-
-
-
2,313
(79)
1,956
(68)
786
2,914
798
2,408
(39)
1
(1,521)
(25)
32
66
11
11,175
(178)
(1,444)
5,719
1,506
2,569
9,794
17
(3)
(200)
(186)
-
(473)
(5)
(478)
-
-
-
-
-
1
1
1
-
-
1
-
65
(30)
2,269
6
33
(12)
(2)
22
(148)
(134)
11
(70)
3
(98)
(56)
(2)
-
-
(1)
(113)
(146)
1,925
746
1,322
863
2,093
9,218
(490)
306
(515)
5,038
(3)
(27)
(520)
(69)
(68)
169
(1)
(47)
(563)
957
2,222
8,217
5,221
3,347
873
Millions of euro
Deferred tax assets:
- differences in the
carrying amount of
intangible assets,
property, plant and
equipment
- accruals to provisions
for risks and charges
and impairment
losses with deferred
deductibility
- tax loss carried forward
- measurement of
financial instruments
- employee benefits
- other items(1)
Total
Deferred tax liabilities:
- differences on non-
current and financial
assets
- measurement of
financial instruments
- other items(1)
Total
Non-offsettable
deferred tax assets
Non-offsettable
deferred tax liabilities
Excess net deferred
tax liabilities after any
offsetting
(1) The figures at December 31, 2022 for deferred tax assets and liabilities have been adjusted in the amount of €250 million and €252 million respectively to
take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods beginning on or after January 1, 2023. For more
information, please see note 8 “Restatement of comparative disclosures”.
Deferred tax assets recognized at December 31, 2023, as
the recovery of such assets is considered reasonably cer-
tain, totaled €9,218 million (€11,175 million at December
31, 2022).
Deferred tax assets decreased by €1,957 million during
the year, essentially due to:
• a decrease in deferred tax assets connected with de-
velopments in the fair value of cash flow hedge deriv-
atives;
• the impact of exchange rate differences in Latin Amer-
ica, in particular in Argentina;
• the reversal of the portion of deferred tax assets no
longer considered recoverable in the United States and
Mexico;
• the reclassification to assets held for sale of generation
and distribution assets in Peru.
Note that deferred tax assets have not been assessed on
tax losses carried forward for the year (€1,480 million) in
Notes to the consolidated financial statements
353
the amount of €453 million, as their recoverability is not
considered probable based on current estimates of future
taxable income.
Deferred tax liabilities amounted to €8,217 million at De-
cember 31, 2023 (€9,794 million at December 31, 2022).
They essentially include the determination of the tax ef-
fects 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 purpos-
es, including accelerated depreciation, and depreciation
based on the estimated useful lives of assets.
Deferred tax liabilities decreased by a total of €1,577 mil-
lion, due in particular to:
• the decrease in deferred tax liabilities connected with
developments in the fair value of cash flow hedge de-
rivatives;
• the impact of exchange rate differences in Latin Amer-
ica, in particular in Argentina;
• the reversal of deferred tax liabilities connected with
impairment losses on renewable generation plants in
the United States;
• the reclassification of deferred tax liabilities relating to
companies held for sale in Peru.
26. Equity-accounted investments – €1,650 million
The following table shows changes in the main invest-
ments in joint ventures and associated companies ac-
counted for using the equity method.
Millions of euro
% held
at
Dec. 31, 2022
Impact
on profit
or loss
Change in the
consolidation
scope Dividends
Reclassification
to discontinued
operations
Reclassifications
from/to assets
held for sale Impairment
Other
changes
% held
at
Dec. 31, 2023
Joint ventures
Gridspertise Srl
299 50.0%
9
Mooney Group
SpA
Slovak Power
Holding
Enel Green
Power Australia
Enel Green
Power Hellas
Matimba project
companies
Kino project
companies
Ewiva Srl
Drift Sand Wind
Project
Front Marítim del
Besòs
Elecgas SA
Tejo Energia
- Produção e
Distribuição de
Energia Eléctrica
Suministradora
Eléctrica de
Cádiz
Energie
Electrique de
Tahaddart
Rusenergosbyt
PowerCrop
Total joint
ventures
219 50.0%
(35)
90 50.0%
-
-
108 50.0%
-
(7)
(1)
(1)
16 20.0%
(13)
20 50.0%
45 50.0%
31 61.4%
30 50.0%
5 43.8%
9 33.5%
11 32.0%
91 49.5%
14 50.0%
988
(3)
1
(2)
6
-
3
3
58
(6)
12
-
-
-
142
246
(15)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13)
-
(3)
(2)
-
-
373
(18)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(115)
-
(115)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
1
99
13
-
(17)
(2)
22
(1)
1
(2)
-
(1)
(4)
(34)
-
73
306 50.0%
185 50.0%
189 50.0%
148 50.0%
245 50.0%
75 50.0%
1 20.0%
39 50.0%
45 50.0%
30 61.4%
21 50.0%
5 43.8%
8 33.5%
8 32.0%
-
8 50.0%
1,313
354 Integrated Annual Report 2023
Millions of euro
% held
at
Dec. 31, 2022
Impact
on profit
or loss
Change in the
consolidation
scope Dividends
Reclassification
to discontinued
operations
Reclassifications
from/to assets
held for sale Impairment
Other
changes
% held
at
Dec. 31, 2023
Associates
CESI
GNL Chile SA
Energías
Especiales del
Bierzo
Gorona del
Viento El Hierro
SA
Compañía Eólica
Tierras Altas
Sociedad Eólica
El Puntal
Renovables
Brovales 400 kV
Cogenio Iberia
Cogenio Srl
Avikiran Solar
India
Avikiran Surya
India
EGPNA
Renewable
Energy Partners
Rocky Caney
Holding
Other minor
Total associates
TOTAL
58 42.7%
14 33.3%
12 50.0%
(2)
7
1
13 23.2%
(6)
7 37.5%
4 50.0%
-
5 20.0%
9 20.0%
-
27 51.1%
77
10.0%
22
10.0%
45
293
1,281
1
1
-
-
-
(1)
(1)
2
2
(57)
(53)
(41)
-
-
-
-
-
-
-
-
-
29
-
-
-
8
37
-
-
(2)
-
(1)
(2)
-
-
-
-
-
-
-
(2)
(7)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
410
(25)
(115)
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
-
-
2
5
1
(1)
(1)
(2)
(15)
(4)
85
68
56 42.7%
20 33.3%
10 50.0%
7 23.2%
7 37.5%
5 50.0%
5 64.2%
6 20.0%
8 20.0%
27 51.0%
24 51.0%
64 10.0%
20 10.0%
78
337
141
1,650
The increase in equity accounted investments in 2023
mainly reflected:
• changes in the consolidation scope, mainly regarding:
– the recognition of the interest in the joint ventures
of Enel Green Power Australia (€142 million), follow-
ing the sale, to INPEX Corporation, of a 50% stake in
those companies, previously wholly owned and clas-
sified as held for sale;
– the recognition of the interest in the joint venture
Enel Green Power Hellas (€246 million), following
the sale, to Macquarie Asset Management, of a 50%
stake in the company, previously controlled by the
Enel Group;
– the recognition of the interest in the associate Avi-
kiran Solar India Private Limited (€ 29 million) follow-
ing the sale to Norfund of 49% of the company, with
loss of control;
– the recognition of the negative price adjustment of
the investment in the joint venture holding the com-
panies of the Matimba project (€15 million);
• the recognition of the Group’s share in changes in the
OCI reserves (€98 million) mainly in respect of Slovak
Power Holding and attributable to developments in the
fair value of cash flow hedge derivatives of the com-
pany.
These positive effects were mainly offset by the reclassifi-
cation under discontinued operations of the entire invest-
ment in Rusenergosbyt (€115 million), which was then sold
in 2023, as well as dividends distributed in the year in the
amount of €25 million, mainly by Spanish companies, and
adverse exchange rate developments.
The following tables provide a summary of financial infor-
mation for the main joint ventures and associates of the
Group not classified as held for sale in accordance with
IFRS 5.
Notes to the consolidated financial statements
355
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022
49
1,134
7,843
315
672
-
20
87
112
9
1,086
4,950
-
-
-
24
-
117
1,599
1,763
158
649
1,393
21
166
113
-
73
14
48
198
575
6,620
-
-
-
93
90
-
9
207
1,783
9,236
336
838
1,712
-
93
101
160
207
1,661
11,570
1,856
-
-
-
-
114
126
95
(402)
4,702
165
(42)
191
79
99
53
103
79
(332)
2,250
-
-
251
40
102
-
111
Joint ventures
Gridspertise Srl
Mooney Group SpA
Slovak Power Holding
Enel Green Power
Australia
Enel Green Power Hellas
Matimba project
companies
Ewiva Srl
Associates
CESI
Avikiran Solar India
Avikiran Surya India
170
894
12,468
428
687
1,583
40
179
148
200
94
880
12,376
-
-
1,759
40
191
-
207
132
487
1,470
73
109
320
39
13
6
63
192
449
1,444
-
-
348
-
25
-
30
302
1,381
13,938
501
796
1,903
79
192
154
263
286
1,329
13,820
-
-
2,107
40
216
-
237
Millions of euro
Total revenue
Pre-tax profit/(loss)
Profit/(Loss) from continuing
operations
2023
2022
2023
2022
2023
2022
Joint ventures
Gridspertise Srl
Mooney Group SpA
Slovak Power Holding
Enel Green Power
Australia
Enel Green Power Hellas
Matimba project
companies
Ewiva Srl
Associates
CESI
Avikiran Solar India
Avikiran Surya India
418
435
5,129
37
127
148
-
164
15
18
334
224
5,184
-
-
114
-
155
-
9
23
(70)
856
(28)
25
(8)
(6)
(5)
(6)
(3)
12
(33)
(320)
-
-
(39)
(4)
(4)
-
1
17
(70)
598
(28)
17
(2)
(6)
(5)
(6)
(3)
8
(33)
(223)
-
-
(24)
(4)
(1)
-
1
356 Integrated Annual Report 2023
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Equity
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022
49
1,134
7,843
315
672
9
1,086
4,950
-
-
1,599
1,763
-
20
87
112
-
24
-
117
158
649
1,393
21
166
113
-
73
14
48
198
575
6,620
-
-
93
-
90
-
9
207
1,783
9,236
336
838
1,712
-
93
101
160
207
1,661
11,570
-
-
1,856
-
114
-
126
95
(402)
4,702
165
(42)
191
79
99
53
103
79
(332)
2,250
-
-
251
40
102
-
111
Joint ventures
Gridspertise Srl
Mooney Group SpA
Slovak Power Holding
Enel Green Power
Australia
Enel Green Power Hellas
Matimba project
companies
Ewiva Srl
Associates
CESI
Avikiran Solar India
Avikiran Surya India
Joint ventures
Gridspertise Srl
Mooney Group SpA
Slovak Power Holding
Enel Green Power
Australia
Enel Green Power Hellas
Matimba project
companies
Ewiva Srl
Associates
CESI
Avikiran Solar India
Avikiran Surya India
170
894
12,468
428
687
1,583
40
179
148
200
418
435
5,129
37
127
148
-
164
15
18
94
880
12,376
-
-
1,759
40
191
-
207
334
224
5,184
-
-
-
-
9
114
155
132
487
1,470
73
109
320
39
13
6
63
23
(70)
856
(28)
25
(8)
(6)
(5)
(6)
(3)
192
449
1,444
348
-
-
-
25
-
30
12
(33)
(320)
-
-
(39)
(4)
(4)
-
1
302
1,381
13,938
501
796
1,903
79
192
154
263
17
(70)
598
(28)
17
(2)
(6)
(5)
(6)
(3)
286
1,329
13,820
-
-
2,107
40
216
-
237
8
(33)
(223)
-
-
(24)
(4)
(1)
-
1
Millions of euro
Total revenue
Pre-tax profit/(loss)
operations
Profit/(Loss) from continuing
2023
2022
2023
2022
2023
2022
Notes to the consolidated financial statements
357
27. Derivatives
Millions of euro
Derivative financial assets
Derivative financial liabilities
For more information on derivatives qualifying has hedg-
ing instruments and measured at FVTPL, please see note
51 “Derivatives and hedge accounting”.
Non-current
Current
at
Dec. 31, 2023
at
Dec. 31, 2022
at
Dec. 31, 2023
at
Dec. 31, 2022
2,383
3,373
3,970
5,895
6,407
6,461
14,830
16,141
28. Current/Non-current contract assets/(liabilities)
Millions of euro
Non-current
Current
Contract assets
Contract liabilities
at
Dec. 31, 2023
at
Dec. 31, 2022
at
Dec. 31, 2023
at
Dec. 31, 2022
444
5,743
508
5,747
212
2,126
106
1,775
Non-current assets deriving from contracts with custom-
ers (contract assets) refer mainly to assets with long-term
utility under construction in respect of public-to-private
service concession arrangements recognized in accor-
dance with IFRIC 12 (€425 million). 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 com-
pleted and can be remunerated through rates. The figure
at December 31, 2023 includes investments for the year in
the amount of €795 million.
Current contract assets mainly concern construction con-
tracts in progress (€167 million) to be invoiced, payments
on which are subject to the fulfillment of a performance
obligation.
The value at December 31, 2023 of non-current contract
liabilities is mainly attributable to distribution operations
in Italy (€3,014 million) and Spain (€2,729 million) as a re-
sult of the accounting treatment of revenue from con-
nections of new customers, which are deferred over the
average duration of the associated contracts.
Current contract liabilities include the contractual liabili-
ties related to revenue from connections to the electricity
grid expiring within 12 months in the amount of €1,628
million mainly recognized in Italy and Spain, as well as lia-
bilities for construction contracts in progress (€453 mil-
lion).
As required under IFRS 15, the following table reports the
reversal to profit or loss of contract liabilities by time band.
at Dec. 31, 2023
at Dec. 31, 2022
2,126
568
567
565
564
3,479
7,869
1,775
516
517
516
515
3,683
7,522
Millions of euro
Within 1 year
Within 2 years
Within 3 years
Within 4 years
Within 5 years
More than 5 years
Total
358 Integrated Annual Report 2023
29. Other non-current financial assets – €8,750 million
Millions of euro
Equity investments in other companies measured at fair value
Other non-current financial assets included in net financial debt
(see note 29.1)
Service concession arrangements
Financial assets in respect of joint development agreements (JDA)
Non-current financial prepayments
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
346
3,837
4,391
133
43
8,750
366
4,213
3,732
-
48
8,359
(20)
(376)
659
133
(5)
391
-5.5%
-8.9%
17.7%
-
-10.4%
4.7%
“Other non-current financial assets” increased by €391
million reflecting:
• the increase in financial assets in respect of service
concession arrangements, mainly in Brazil;
• the recognition of financial assets in respect of joint
development agreements (JDA) in relation to amounts
paid by a number of the Group’s Italian renewables
companies to developers for the development of re-
newable generation projects; in 2022 those assets
were recognized under other non-current assets in the
amount of €100 million.
These positive effects were partly offset mainly by the de-
crease in other non-current financial assets included in
net financial debt, as specified in note 29.1, and the de-
crease in equity investments in other companies following
the disposal of the investment in Athonet Srl and the re-
duction in the value of the investments in Termoeléctrica
José de San Martín SA and Termoeléctrica Manuel Belgra-
no SA.
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 AG
Athonet Srl
Korea Line Corporation
Hubject GmbH
Termoeléctrica José de San Martín SA
Termoeléctrica Manuel Belgrano SA
Zacapa Topco Sàrl
Other
Total
at Dec. 31, 2023 % held at Dec. 31, 2022 % held
Change
8
11.1%
22
2.4%
-
1
-
0.3%
11
12.5%
3
2
5.6%
6.2%
7
11.1%
22
2.4%
7
1
11
11
9
16.0%
0.3%
12.5%
24.7%
8.6%
287
19.5%
288
19.5%
12
346
10
366
1
-
(7)
-
-
(8)
(7)
(1)
2
(20)
29.1 Other non-current financial assets included in net financial debt – €3,837 million
Millions of euro
Securities
Other financial assets
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
505
3,332
3,837
447
3,766
4,213
58
(434)
(376)
13.0%
-11.5%
-8.9%
“Securities” at FVOCI are represented by financial instru-
ments in which the Dutch insurance companies invest a
portion of their liquidity.
The decrease in “other financial assets” is mainly attribut-
able to a decrease in financial assets for security deposits
(€634 million), mainly in the Endesa Group, partly offset
in particular by the increase in financial assets relating to
the deficit of the Spanish electricity system (€85 million)
and medium- and long-term financial assets (€79 million),
mainly in Enel Finance International and Enel Américas.
Notes to the consolidated financial statements
359
30. Other current financial assets – €4,329 million
Millions of euro
Current financial assets included in net financial debt (see note 30.1)
Other
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
4,148
181
4,329
13,501
252
13,753
(9,353)
(71)
(9,424)
-69.3%
-28.2%
-68.5%
“Other current financial assets” decreased by €9,424 mil-
lion, mainly reflecting the decrease in current financial as-
sets included in net financial debt, as detailed in note 30.1,
and the decrease in accrued financial income.
30.1 Other current financial assets included in net financial debt – €4,148 million
Millions of euro
Current portion of long-term financial assets
Securities at FVOCI
Cash collateral and other financial assets in respect of derivatives
transactions
Other
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
1,007
81
2,899
161
4,148
2,838
78
8,319
2,266
13,501
(1,831)
3
-64.5%
3.8%
(5,420)
-65.2%
(2,105)
(9,353)
-92.9%
-69.3%
The change in the item is mainly attributable to:
• €5,420 million in respect of a decrease in cash collat-
eral paid to counterparties for derivatives transactions;
• a decrease in “other”, mainly reflecting the decrease in
financial assets of:
– Enel Brasil (€1,212 million), mainly in respect of the
recognition in 2022 of the receivables connected to
the sale of Celg Distribuição SA - Celg-D (Enel Goiás);
– Enel X Italia (€581 million), mainly reflecting the col-
lection of financial assets in respect of the assign-
ment of tax credits for building renovations under
the “eco-sisma bonus” program in 2022;
• the decrease in the current portion of long-term finan-
cial assets (€1,831 million), mainly due to a decrease in
financial assets relating to the deficit of the Spanish
electricity system.
31. Other non-current assets – €2,249 million
Millions of euro
Amounts due from institutional market operators
Net assets of personnel programs
Tax assets > 12 months
Operating security deposits >12 months
Other
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
331
42
1,487
306
83
2,249
282
8
1,674
301
221
2,486
49
34
(187)
5
(138)
(237)
17.4%
-
-11.2%
1.7%
-62.4%
-9.5%
Amounts due from institutional market operators in-
creased by €49 million on 2022, mainly in Spain in respect
of distribution activities.
Tax assets decreased by €187 million, mainly in Brazil in
connection with the PIS/COFINS tax dispute (€338 mil-
lion), partly offset by an increase in tax assets in Italy and
Chile.
360 Integrated Annual Report 2023
32. Other current assets – €4,099 million
Millions of euro
Amounts due from institutional market operators
Advances to suppliers
Amounts due from employees
Non-monetary grants to be received for environmental certificates
Amounts due from others
Sundry tax assets
Current accrued income and prepayments
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
1,161
311
28
24
1,068
1,311
196
4,099
1,033
332
30
16
1,040
1,598
265
4,314
128
(21)
(2)
8
28
(287)
(69)
(215)
12.4%
-6.3%
-6.7%
50.0%
2.7%
-18.0%
-26.0%
-5.0%
Amounts due from institutional market operators mainly
include amounts due in respect of the Italian system in
the amount of €700 million (€617 million at December 31,
2022) and the Spanish system in the amount of €422 mil-
lion (€388 million at December 31, 2022).
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-distribuzi-
one (€390 million) and Servizio Elettrico Nazionale (€252
million), primarily connected with equalization mecha-
nisms.
The decrease of €287 million in sundry tax assets is mainly
attributable to a decrease in credits for indirect taxes and
duties recognized by the Parent Company Enel SpA (€274
million) in Italy (€18 million) and Latin America (€108 mil-
lion), partially offset by an increase in such items in Spain
(€146 million) and North America (€58 million).
33. Inventories – €4,290 million
Millions of euro
Raw and ancillary materials, and consumables:
- fuels
- materials, equipment and other inventories
Total
Environmental certificates:
- CO2 emissions allowances
- guarantees of origin
- energy efficiency certificates
- other environmental certificates
Total
Buildings held for sale
Payments on account
TOTAL
at Dec. 31, 2023 at Dec. 31, 2022
Change
1,598
2,000
3,598
514
39
-
6
559
45
88
2,396
2,137
4,533
152
18
6
-
176
47
97
(798)
(137)
(935)
362
21
(6)
6
383
(2)
(9)
-33.3%
-6.4%
-20.6%
-
-
-
-
-4.3%
-9.3%
4,290
4,853
(563)
-11.6%
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 decrease in inventories in 2023 (€563 million) is
mainly attributable to a decrease in inventories of fuel and
materials, devices and other inventories recorded in Italy
(€537 million, of which €166 million in respect of write-
downs of coal and other materials), Spain (€363 million)
and Latin America (€35 million), notably gas inventories
to meet the needs of the Group, partially offset by the in-
crease in CO2 emissions allowances in Italy.
Notes to the consolidated financial statements
361
34. Trade receivables – €17,773 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, 2023 at Dec. 31, 2022
Change
11,133
2,811
3,646
17,590
183
17,773
10,216
3,026
3,118
16,360
245
16,605
917
(215)
528
1,230
(62)
1,168
9.0%
-7.1%
16.9%
7.5%
-25.3%
7.0%
Trade receivables due from customers are recognized net
of loss allowances, which totaled €3,775 million at the end
of the year, compared with a balance of €3,783 million at
the end of the previous year.
Specifically, the increase in 2023, totaling €1,168 million,
is attributable to an increase in receivables for electricity
sale and transport recognized in the year.
The change was mainly recognized in Italy (€1,810 million),
partially offset by the decrease recognized in Spain (€230
million) and Latin America (€231 million).
For more information on trade receivables, please see
note 48 “Financial instruments by category”.
35. Cash and cash equivalents – €6,801 million
Cash and cash equivalents, detailed in the following ta-
ble, decreased by €4,240 million, mainly in Italy and North
America, partially offset by an increase in Spain.
Millions of euro
Bank and postal deposits
Cash and cash equivalents on hand
Other investments of liquidity
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
4,664
23
2,114
6,801
8,968
35
2,038
11,041
(4,304)
(12)
76
-48.0%
-34.3%
3.7%
(4,240)
-38.4%
362 Integrated Annual Report 2023
36. Assets and liabilities included in disposal groups classified as held for sale – €5,919
million and €2,316 million
Changes in assets held for sale in 2023 break down as fol-
lows.
Millions of euro
at
Dec. 31, 2022
Reclassification
from/to current
and non-
current assets
Disposals and
change in the
consolidation
Exchange
scope Impairment
differences Investments
Property, plant and equipment
3,304
3,574
(3,440)
(263)
Intangible assets
Goodwill
Deferred tax assets(1)
Equity-accounted investments
Other non-current assets(2)
Non-current financial assets
and securities(2)
Non-current financial assets
Current financial assets and
securities
Other current financial assets
Cash and cash equivalents
Inventories, trade receivables
and other current assets
Total(1)
334
-
217
27
50
75
138
43
9
425
1,533
6,155
719
616
146
116
37
-
-
1
2
259
351
(328)
(46)
(88)
(142)
(222)
(29)
(85)
(20)
(11)
(320)
(1,479)
16
(1)
-
-
-
-
-
-
-
-
-
Other
changes
at
Dec. 31, 2023
(228)
3,708
(41)
-
(23)
-
170
(1)
(50)
9
-
(63)
(4)
715
572
196
1
35
-
-
1
-
261
430
(59)
(14)
3
(56)
-
-
(45)
(3)
(32)
-
(40)
29
820
29
-
-
-
-
-
-
-
-
-
-
5,821
(6,210)
(248)
(217)
849
(231)
5,919
(1) The figures at December 31, 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting
periods beginning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
(2) At December 31, 2022, “Other non-current assets” included the “Non-current financial assets and securities” reported separately in the table above.
Developments in liabilities break down as follows.
Millions of euro
Long-term borrowings
Provisions for risks and charges, non-current portion
Deferred tax liabilities(1)
Post-employment and other employee benefits
Non-current financial liabilities
Non-current contract liabilities
Other non-current liabilities
Short-term borrowings
Long-term borrowings, current portion
Provisions for risks and charges, current portion
Other current financial liabilities
Trade payables and other current liabilities
Total(1)
Reclassification
from/to current
and non-current
liabilities
Disposals and
change in the
consolidation
scope
Exchange
differences
Other
changes
at
Dec. 31, 2022
at
Dec. 31, 2023
775
33
246
23
69
442
179
642
18
33
12
894
3,366
663
33
563
4
-
-
19
217
100
10
8
385
(908)
(34)
(192)
(22)
(80)
(453)
(149)
(189)
(9)
(64)
(17)
(705)
(49)
-
(70)
(3)
(2)
-
(8)
249
4
(42)
3
23
11
13
(10)
(384)
(5)
(2)
-
11
41
32
6
(48)
(92)
730
36
505
5
10
-
54
276
145
9
9
537
2,316
2,002
(2,822)
(138)
(1) The figures at December 31, 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting
periods beginning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
Notes to the consolidated financial statements
363
The item essentially includes assets measured at the lower of
cost, understood as their net carrying amount, and the esti-
mated realizable value, which, due to management decisions,
meet the requirements of “IFRS 5 - Non-current Assets Held
for Sale and Discontinued Operations” for their classification
in this item.
The balances of assets held for sale and associated liabilities
at December 31, 2023 came to, respectively, €5,919 million
and €2,316 million and mainly refer to:
• 3SUN in Italy: on the basis of the negotiations finalized to
the disposal of a 50% stake in the social capital of 3SUN
Srl, its net assets have been reclassified as “Non-current
assets held for sale and discontinued operations”, in line
with IFRS 5;
• North America: assets relating to a renewable portfolio in
the United States including about 150 MW of operational
geothermal and solar plants;
• Peru: the electricity distribution and supply assets held by
Enel Distribución Perú SAA, the advanced energy services
assets of Enel X Perú SAC and the generation assets held
by Enel Generación Perú, Compañía Energética Veracruz
and Enel Generación Piura as, on the basis of the negoti-
ations in place, the requirements set by IFRS 5 have been
met;
• Colombia: the Windpeshi wind farm under construction,
which based on negotiations under way satisfies the re-
quirements of IFRS 5.
Assets previously classified as held for sale disposed of in
2023 include:
• in the 1st Half of 2023, Enel Generación Costanera, Inver-
sora Dock Sud and Central Dock Sud generation compa-
nies were sold in Argentina; Enel Green Power India relin-
quished control of the net assets held through Avikiran
Solar India Private Limited while maintaining a residual in-
terest in the company of 51% of the paid-up share capital;
• in the 3rd Quarter of 2023, the subsidiary Enel Green
Power SpA sold 50% of the two companies holding all of
the Group renewable assets in Australia, specifically Enel
Green Power Australia (Pty) Ltd and Enel Green Power Aus-
tralia Trust, to INPEX Corporation;
• during the 4th Quarter of 2023, the Enel Group completed
through the subsidiary Endesa Generación SAU the sale of
the entire stake held in Tecnatom SA.
For more information on the financial effects of the above
transactions, please see note 9 “Main acquisitions and dis-
posals during the year”.
Several assets previously classified as discontinued opera-
tions were disposed of in 2023. In particular, in the 4th Quarter
the Group completed the sale of all the stakes held in Roma-
nia. Finally, the sale of a 50% stake in Enel Green Power Hellas
was finalized.
For more information on the financial effects of the above
transactions, please see note 7 “Discontinued operations”
and note 9 “Main acquisitions and disposals during the year”.
37. Equity – €45,109 million
37.1 Equity attributable to owners of the Parent – €31,755 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(1)
Equity attributable to owners of the Parent(1)
at Dec. 31, 2023
at Dec. 31, 2022
Change
10,167
(59)
6,551
7,496
6,553
2,034
2,341
(5,289)
(1,393)
(38)
10
(375)
(1,185)
(2,390)
(1,213)
15,096
31,755
10,167
(47)
2,740
7,496
5,567
2,034
2,332
(5,912)
(3,553)
(81)
(22)
(476)
(1,063)
(2,390)
(1,192)
15,795
28,655
-
(12)
3,811
-
986
-
9
623
2,160
43
32
101
(122)
-
(21)
(699)
3,100
(1) The figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods begin-
ning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
364 Integrated Annual Report 2023
Share capital – €10,167 million
At December 31, 2023 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, 2022.
At December 31, 2023, 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 infor-
mation, 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) and BlackRock Inc. (with
a 5.023% stake held for asset management purposes).
Treasury share reserve – €(59) million
At December 31, 2023, treasury shares are represented by
9,262,330 ordinary shares of Enel SpA with a par value of
€1.00 each (7,153,795 at December 31, 2022), purchased
through an authorized intermediary for a total of €59 mil-
lion.
Other reserves – €6,551 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
– €6,553 million
This reserve reports the nominal value, net of transaction
costs, of the non-convertible subordinated perpetual hy-
brid bonds denominated in euros for international inves-
tors.
The change of €986 million in the reserve reflects the is-
sue of new bonds in the amount of €1,738 million, net of
transaction costs, partly offset by the repurchase and sub-
sequent cancellation of previous bonds in the amount of
€752 million, including transaction costs.
In 2023, coupons of €182 million were paid to holders of
perpetual hybrid bonds.
Legal reserve – €2,034 million
The legal reserve is formed as allocation of part of the net
income that, pursuant to Article 2430 of the Italian Civil
Code, cannot be distributed as dividends.
Other reserves – €2,341 million
These include €2,215 million related to the remaining por-
tion of the value adjustments carried out when Enel was
transformed from a public entity to a joint-stock company.
Pursuant to Article 47 of the Uniform Income Tax Code,
this amount does not constitute taxable income when dis-
tributed.
Translation reserve – €(5,289) million
The increase of €623 million in the period was mainly due
to the change in the consolidation scope connected with
stakes held in Romania, Inversora Dock Sud and Central
Dock Sud and Enel Generación Costanera, as well as the
net depreciation of the functional currencies used by for-
eign subsidiaries, mainly in Chile and the United States,
against the euro (presentation currency of the Parent).
Hedging reserve – €(1,393) million
This includes the net expense recognized in equity from
the measurement of hedging derivatives. The change in
the period is mainly attributable to developments in com-
modity prices.
Hedging costs reserve – €(38) million
In application of IFRS 9, this reserve includes the fair val-
ue gains and losses on currency basis points and forward
points. The change in 2023 is mainly attributable to devel-
opments in commodity prices.
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 – €(375)
million
The reserve reports the share of comprehensive income
to be recognized directly in equity of equity-accounted
investees. The change in 2023 is mainly attributable to the
change in the hedging reserve of Slovak Power Holding.
Actuarial reserve – €(1,185) 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 – €(2,390) 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
result of the Enersis (now Enel Américas and Enel Chile)
capital increase;
Notes to the consolidated financial statements
365
• 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 effects of the disposal of a 49% stake held by Enel
Green Power Canada in Pincher Creek LP and Riverview
LP.
Reserve from acquisitions of non-controlling interests –
€(1,213) 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 (-€21 million) mainly reflects the
effects of the merger of Enel Green Power Perú, Energéti-
ca Monzón and Empresa de Generación Eléctrica Los Pi-
nos (merged entities) into Enel Generación Perú (acquiring
entity), changing the interest held by the Group in those
companies.
Retained earnings – €15,096 million
This reserve reports earnings from previous years that
have not been distributed or allocated to other reserves.
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
Translation
reserve
at Dec. 31, 2022
Changes
at Dec. 31, 2023
Of
which
owners
of the
Parent
Of which
non-
controlling
interests
Gains/
(Losses)
recognized
in equity
during the
year
Total
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
(10,900)
(5,424)
(5,476)
(504)
-
-
(504)
(415)
(89)
(11,404)
(5,839)
(5,565)
Hedging reserve
(4,656)
(3,573)
(1,083)
1,146
2,512
(947) 2,711
2,111
600
(1,945)
(1,462)
(483)
(111)
(91)
(20)
75
(16)
(10)
49
43
6
(62)
(48)
(14)
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
(33)
(32)
(1)
12
(586)
(601)
15
92
(19)
(19)
-
3
-
-
-
-
(1)
11
15
(4)
(22)
(17)
(5)
6
98
97
1
(488)
(504)
16
-
3
3
-
(16)
(16)
-
66
(151)
(120)
(31)
(1,625)
(1,136)
(489)
Actuarial reserve
(1,474)
(1,016)
(458)
(217)
Total gains/
(losses)
recognized in
equity
(17,779)
(10,756)
(7,023)
607
2,496 (886) 2,217
1,734
483 (15,562)
(9,022)
(6,540)
366 Integrated Annual Report 2023
37.2 Dividends
Dividends distributed in 2022
Dividends for 2021
Interim dividends for 2022(1)
Special dividends
Total dividends distributed in 2022
Dividends distributed in 2023
Dividends for 2022
Interim dividends for 2023(2)
Special dividends
Total dividends distributed in 2023
Amount distributed
(millions of euro)
Dividend per share (euro)
3,861
-
-
3,861
4,064
-
-
4,064
0.38
-
-
0.38
0.40
-
-
0.40
(1) Approved by the Board of Directors on November 3, 2022 and paid as from January 25, 2023 (interim dividend of €0.20 per share for a total of €2,033
million).
(2) Approved by the Board of Directors on November 7, 2023 and paid as from January 24, 2024 (interim dividend of €0.215 per share for a total of €2,186
million).
Dividends distributed are shown net of amounts due to
treasury shares at the respective “record dates”. These
shares were waived for collection and allocated to “re-
tained earnings”.
The dividend for 2023, is equal to €0.43 per share, for a
total of €4,372 million (of which €0.215 per share for a to-
tal of €2,186 million already paid as an interim dividend). It
will be proposed to the Shareholders’ Meeting of May 23,
2024 at single call.
These consolidated financial statements do not take ac-
count of the effects of the distribution to shareholders
of the dividend for 2023, except for the liability in respect
of shareholders for the interim dividend for 2023, which
was approved by the Board of Directors on November 7,
2023 for a potential maximum of €2,186 million, and paid
as from January 24, 2024 net of the portion pertaining to
the 10,085,106 treasury shares held as at the record date
of January 23, 2024.
In 2023 the Group also paid €182 million in coupons to
holders of perpetual hybrid bonds.
Millions of euro
Non-current financial debt
Net current financial position
Non-current financial assets and long-term securities
Net financial debt(1)
Equity attributable to owners of the Parent
Non-controlling interests
Equity(2)
Debt/equity ratio
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
adequate capitalization that enables it to achieve a sat-
isfactory 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 2023.
To this end, the Group constantly monitors developments
in the level of its debt in relation to equity. The situation at
December 31, 2023 and 2022 is summarized in the follow-
ing table.
at Dec. 31, 2023
at Dec. 31, 2022
Change
61,093
2,907
(3,837)
60,163
31,755
13,354
45,109
1.33
68,191
(3,315)
(4,213)
60,663
28,655
13,425
42,080
1.44
(7,098)
6,222
376
(500)
3,100
(71)
3,029
(0.11)
(1)
In order to facilitate analysis of developments in Group net financial debt, thereby ensuring greater comparability over time, management has decided
to exclude the fair value of the cash flow hedge and fair value hedge derivatives used to hedge the exchange rate risk on loans. Accordingly, in order to
improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022.
(2) The figures for 2022 have been adjusted to take account of the effects of the Amendment to IAS 12, which took effect for annual reporting periods begin-
ning on or after January 1, 2023. For more information, please see note 8 “Restatement of comparative disclosures”.
Notes to the consolidated financial statements
367
The decrease in the debt/equity ratio, which measures fi-
nancial leverage, is essentially attributable to the increase
in equity as a result of profit for the year, the increase in
reserves from the measurement of cash flow hedge deriv-
atives and the change in the scope of the reserve for the
translation of financial statements in foreign currency, only
37.3 Non-controlling interests – €13,354 million
The following table presents the composition of non-con-
trolling interests by geographical area.
partly offset by dividend distributions. The reduction in net
financial debt further contributed to the decline.
See note 47 for a breakdown of the individual items in the
table.
Millions of euro
Italy
Iberia
Latin America
Europe
North America
Africa, Asia and Oceania
Total
Non-controlling interests
Profit for the year attributable to non-
controlling interests
at Dec. 31, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
-
5,470
7,665
-
151
68
1
5,321
7,422
328
218
135
13,354
13,425
-
192
666
3
(39)
7
829
-
713
857
(342)
10
-
1,238
The change in non-controlling interests mainly reflects the
effect of the dividends distributed and the disposal of eq-
uity stakes in Romania. These effects were offset by the
results for the period, the impact of hyperinflation and the
value adjustment of cash flow hedge instruments.
The financial disclosure requirements of IFRS 12 for sub-
sidiaries with significant non-controlling interests are re-
ported below.
The figures at December 31, 2022 have been adjusted to
take account of the effects of the Amendment to IAS 12,
which took effect for annual reporting periods beginning
on or after January 1, 2023. For more information, please
see note 8 “Restatement of comparative disclosures”.
Millions of euro
Non-current assets
Current assets
Total assets
at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022 at Dec. 31, 2023 at Dec. 31, 2022
Subsidiaries
Enel Américas
Enel Chile
Endesa
27,578
10,810
43,701
29,635
11,094
45,125
8,459
1,722
4,033
5,430
1,541
11,166
36,037
12,532
47,734
35,065
12,635
56,291
Millions of euro
Non-current
liabilities
Current liabilities
Total liabilities
Equity
Equity attributable
to owners of the
Parent
Non-controlling
interests
at Dec.
31, 2023
at Dec.
31, 2022
at Dec.
31, 2023
at Dec.
31, 2022
at Dec.
31, 2023
at Dec.
31, 2022
at Dec.
31, 2023
at Dec.
31, 2022
at Dec.
31, 2023
at Dec.
31, 2022
at Dec.
31, 2023
at Dec.
31, 2022
Subsidiaries
Enel Américas
10,466
11,569
7,314
6,208
17,780
17,777
18,257
17,288
12,936
12,136
5,321
5,152
Enel Chile
Endesa
3,706
4,222
2,730
2,460
6,436
6,682
6,096
5,953
3,753
3,683
2,343
2,270
16,018
18,523
10,045
17,372
26,063
35,895
21,671
20,396
16,202
15,081
5,469
5,315
368 Integrated Annual Report 2023
Millions of euro
Total revenue
Pre-tax profit
Profit from
continuing
operations
Profit attributable to
owners of the Parent
Profit attributable
to non-controlling
interests
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
13,400
14,696
1,639
4,678
6,450
25,423
32,714
996
839
1,015
1,971
3,055
877
748
595
221
1,458
2,244
504
456
402
(90)
913
1,534
373
292
193
311
545
710
Subsidiaries
Enel Américas
Enel Chile
Endesa
38. Borrowings
Millions of euro
Long-term borrowings
Short-term borrowings
Total
For more information on the nature of borrowings, please
see note 48.2 “Financial liabilities by category”.
39. Employee benefits – €2,320 million
The Group provides its employees with a variety of bene-
fits, including deferred compensation benefits, addition-
al months’ pay for having reached age limits or eligibility
for old-age pension, loyalty bonuses for achievement of
seniority 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, 2023
at
Dec. 31, 2022
at
Dec. 31, 2023
at
Dec. 31, 2022
61,085
68,191
-
-
9,086
4,769
61,085
68,191
13,855
2,835
18,392
21,227
companies merged in the past (Fecsa/Enher/HidroEm-
pordà). Both are defined benefit plans and benefits are
fully insured, with the exception of the former plan for
benefits in the event of the death of a retired employee.
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;
• the item “other benefits” mainly regards the loyalty bo-
nus, which is adopted in various countries and for Italy
is represented by the estimated liability for the benefit
entitling employees covered by the electricity workers
national collective bargaining agreement to a bonus
for achievement of seniority milestones (25th and 35th
year of service). It also includes other incentive plans,
which provide for the award to certain Company man-
agers of a monetary bonus subject to specified condi-
tions.
The following table reports changes in the defined bene-
fit obligation for post-employment and other long-term
employee benefits at December 31, 2023, and December
31, 2022, respectively, as well as a reconciliation of that
obligation with the actuarial liability.
Notes to the consolidated financial statements
369
Millions of euro
2023
2022
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
Total
CHANGES IN ACTUARIAL
OBLIGATION
Change in actuarial
obligation previous year
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
Reclassification to assets
Liabilities included in disposal
groups classified as held for
sale
Actuarial obligation at year-
end (A)
CHANGES IN PLAN ASSETS
Fair value of plan assets at
the start of the year
Interest income
Expected return on plan
assets excluding amounts
included in interest income
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other payments
Changes in the consolidation
scope
Fair value of plan assets at
year-end (B)
EFFECT OF ASSET CEILING
Asset ceiling at the start of
the year
Interest income
Changes in asset ceiling
Exchange differences
Changes in the consolidation
scope
Asset ceiling at year-end (C)
Net liability in statement of
financial position (A-B+C)
370 Integrated Annual Report 2023
3,765
224
162
118
4,269
4,240
410
206
190
5,046
9
336
-
224
(43)
-
-
145
-
-
1
8
-
8
(12)
-
-
1
-
-
3
9
-
6
6
-
-
4
-
-
(1)
4
2
3
1
-
-
(4)
-
-
12
357
13
320
2
-
241
(533)
(48)
-
-
119
(3)
(163)
146
335
-
-
-
-
1
7
-
(93)
(80)
-
-
-
-
-
5
8
-
13
5
-
32
340
-
(38)
(18)
(682)
8
-
-
6
-
-
1
-
-
(1)
-
-
48
(3)
(163)
340
-
-
(393)
(14)
(14)
(17)
(438)
(470)
(15)
(13)
(44)
(542)
-
41
1
-
-
-
-
-
-
-
-
(4)
-
41
(3)
-
8
-
-
-
-
(6)
-
(6)
8
(101)
(6)
(20)
(22)
(149)
4,085
216
176
102
4,579
3,765
224
162
118
4,269
2,124
200
(52)
89
331
-
(393)
-
-
2,299
57
6
(26)
3
-
40
-
-
-
-
14
-
(14)
-
-
-
-
-
-
-
-
-
-
-
-
-
14
-
(14)
-
-
-
-
-
-
-
-
-
-
-
-
-
11
-
(11)
-
-
-
-
-
-
-
-
-
2,124
2,348
200
193
(52)
(184)
89
370
-
(432)
-
-
213
286
-
(470)
(163)
(99)
2,299
2,124
57
6
(26)
3
-
40
26
2
27
2
-
57
-
-
-
-
15
-
(15)
-
-
-
-
-
-
-
-
-
-
-
-
-
13
-
(13)
-
-
-
-
-
-
-
-
-
-
-
-
-
22
-
(22)
-
-
-
-
-
-
-
-
-
2,348
193
(184)
213
336
-
(520)
(163)
(99)
2,124
26
2
27
2
-
57
1,826
216
176
102
2,320
1,698
224
162
118
2,202
The liability recognized came to €2,320 million, an in-
crease of €118 million on 2022 mainly reflecting impair-
ment losses recognized in reflection of a change in the
financial assumptions following the general adverse devel-
opments in rates (discount and inflation rates). In addition
to normal annual changes, in 2023, the actuarial liabilities
of Enel Generación Perú SAA and Enel Distribución Perú
SAA in Peru were reclassified as held for sale. Furthermore,
the actuarial measurement of a plan of Asociación Nucle-
ar Ascó-Vandellós II AIE, in Spain, showed a surplus with
respect to the obligation assumed by the company, and
was thus reclassified in a specific asset item of the balance
sheet.
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
2023
17
163
-
(5)
5
180
2023
52
190
(26)
1
217
2022
22
149
-
7
(20)
158
2022
184
(614)
27
-
(403)
The change in the cost recognized in profit or loss was
equal to €22 million. The impact on the income statement
is, therefore, greater but essentially in line with 2022.
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 €2,299 million at December 31,
2023. The item “actuarial (gains)/losses on defined benefit
plans” shows an increase on 2022, following the decrease
in interest rates, compared to the strong increase in 2022.
Those assets, which are entirely in Spain and Brazil, 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
2023
2022
4
73
3
20
-
-
100
10
66
3
21
-
-
100
The main actuarial assumptions used to calculate the li-
abilities in respect of employee benefits and the plan as-
sets, which are consistent with those used the previous
year, are set out in the following table.
Notes to the consolidated financial statements
371
Italy
Iberia
Latin
America
Other
countries
Italy
Iberia
Latin
America
Other
countries
2023
2022
Discount rate
Inflation rate
3.30%-3.40% 3.14%-3.47% 5.31%-10.09%
7.20% 3.60%-3.70% 3.57%-3.77% 5.40%-10.40% 3.75%-7.65%
2.30%
2.57%
3.00%-7.58%
2.30%
2.78% 3.00%-8.00% 2.40%-3.50%
Rate of wage increases
2.30%-4.30%
2.57% 4.55%-10.00%
10.00% 2.30%-4.30%
2.78% 3.80%-8.49% 3.00%-10.00%
Rate of increase in
healthcare costs
Expected rate of return on
plan assets
3.30%
4.77% 7.63%-10.00%
3.30%
4.98% 7.12%-10.00%
-
- 3.22%-3.31% 9.99%-10.09%
- 3.76%-3.77%
10.40%
7.40%
The following table reports the outcome of a sensitivi-
ty analysis that demonstrates the effects on the defined
benefit obligation of changes reasonably possible at the
end of the year in the actuarial assumptions used in esti-
mating the obligation.
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
at Dec. 31, 2023
at Dec. 31, 2022
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
147
(188)
(49)
(30)
(28)
(28)
-
16
8
(14)
(4)
(4)
(4)
(4)
-
2
5
(9)
(9)
5
(19)
(19)
(164)
(15)
(6)
(12)
(12)
(6)
18
11
-
12
185
(118)
16
37
29
28
-
55
2
(22)
(11)
(10)
(10)
(10)
-
(9)
6
(9)
(8)
6
(2)
(2)
(147)
5
(17)
(23)
(21)
(16)
(17)
(20)
-
(17)
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 €243 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, 2023
at Dec. 31, 2022
447
407
1,120
1,739
427
397
1,124
1,826
372 Integrated Annual Report 2023
40. Provisions for risks and charges – €7,312 million
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
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
571
2,517
663
-
295
1,053
5,099
154
765
-
160
39
250
19
425
893
128
273
TOTAL
6,018
1,294
571
2,677
702
250
314
1,478
5,992
282
1,038
7,312
581
2,686
652
-
313
803
5,035
231
789
-
247
51
292
26
316
932
192
201
581
2,933
703
292
339
1,119
5,967
423
990
6,055
1,325
7,380
Millions of euro
Accrual Reversal Utilization Discounting
at Dec.
31, 2022
Provisions
for site
retirement
and
restoration
Change in the
consolidation
scope
Exchange
differences
Other
changes
Reclassifications
of liabilities
included in
disposal groups
held for sale
at Dec.
31, 2023
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
581
-
-
-
2,933
47
(47)
(161)
703
292
339
1,119
188
(105)
241
18
519
-
(19)
(24)
(118)
(313)
(40)
(151)
5,967
1,013
(195)
(783)
423
28
(11)
(174)
17
-
36
-
6
1
60
18
990
209
(6)
(184)
35
(27)
(15)
-
-
-
5
(37)
-
-
TOTAL
7,380
1,250
(212)
(1,141)
113
(37)
-
-
-
-
-
-
-
-
-
-
-
-
-
571
(10)
(37)
(33)
2,677
6
-
2
(8)
(10)
-
-
-
30
9
18
20
(2)
(6)
(8)
-
(1)
(1)
702
250
314
1,478
(43)
5,992
-
-
282
1,038
(10)
12
(43)
7,312
Nuclear decommissioning provision
At December 31, 2023 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 standard contract between
Enresa and the electricity companies approved by the
Ministry for the Economy, which regulates the retirement
and closing of nuclear power plants. The time horizon en-
visaged, three years, corresponds to the period from the
termination of power generation to the transfer of plant
management to Enresa (so-called post-operational costs)
and takes account, among the various assumptions used
to estimate the amount, of the quantity of unused nuclear
fuel expected at the date of closure of each of the Spanish
nuclear plants on the basis of the provisions of the con-
cession agreement.
Notes to the consolidated financial statements
373
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
do so. The provision mainly regarded the Endesa Group
and Enel Produzione. The change in the provision in 2023
was mainly linked to the uses and releases of provisions
set aside in previous years to deal with the decarboniza-
tion process, mainly in Italy, Spain and Chile.
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, based on the indications of internal and exter-
nal consultants. The balance for litigation mainly regards
the companies in Latin America (€396 million), Spain (€158
million) and Italy (€116 million).
The amount is virtually unchanged compared with 2022, as
the decrease associated with higher uses and releases in
Brazil was offset by new accruals.
Provision for environmental certificates
The provision for environmental certificates covers costs
in respect of shortfalls in the environmental certificates
need for compliance with national or supranational en-
vironmental protection requirements and mainly regards
Iberia (Endesa Energía and Endesa Generación SA).
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 Italy,
the Group has taken due account of developments in land
registry regulations (which with effect from January 1, 2016
excluded machinery, devices, equipment and other plant
specific to a production process from the calculation of
the imputed rent for buildings classified in land registry
group D, which includes generation plants) in estimating
the liability for such taxes, both for the purposes of quan-
tifying the probable risk associated with pending litigation
and generating a reasonable valuation of probable future
374 Integrated Annual Report 2023
Payments by time bracket
(nominal value)
Discounted amount
276
1,147
2,636
4,059
258
1,045
1,374
2,677
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 other
charges.
The increase of €342 million in other provisions is mainly
attributable to Enel Reinsurance for accruals of provisions
for insurance claims (€217 million) and provisions for regu-
latory measures, atmospheric events and faults.
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 €141 million for the year mainly
reflects uses of provisions for incentives established in
previous period in Spain and Italy to cover the early termi-
nation 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 activities
associated with the energy transition process, which in-
volves thermal generation plants in all the geographical ar-
eas 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 in-
tends to implement with highly sustainable plans based
on redeployment programs, with major upskilling and
reskilling plans and voluntary individual early retirement
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-considered deci-
sions at every level within the Group.
A provision was therefore established in 2020 for restruc-
turing programs, which at December 31, 2023 amounted
to €1,038 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. New accruals in 2023 mainly re-
gard Spain following the adjustment of €177 million to the
provision for the Acuerdo Voluntario de Salida (AVS) plan.
41. Other non-current financial liabilities – €8 million
Millions of euro
Other non-current financial liabilities
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
8
8
-
-
8
8
-
-
The change in “other non-current financial liabilities” came
to €8 million and regards the recognition of non-current
financial liabilities in respect of the Spanish electrical sys-
tem deficit, which were included in net financial debt.
42. Other non-current liabilities – €4,236 million
Millions of euro
Accrued operating expenses and deferred income
Liabilities with equalization funds/market and energy services operators
Liabilities for tax partnerships > 12 months
Sundry non-current payments on account
Other items
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
464
307
1,262
348
1,855
4,236
347
205
1,322
-
2,372
4,246
117
102
(60)
348
(517)
(10)
33.7%
49.8%
-4.5%
-
-21.8%
-0.2%
The change in “other items” reflected the decrease in
“other liabilities” mainly relating to the outcome of the PIS/
COFINS dispute in Brazil (already discussed under “Other
non-current assets”) in the amount of €401 million. The
item “sundry non-current payments on account” reports
the collection by e-distribuzione of €348 million in respect
of the 10% advance payment of the grant for 24 projects
awarded NRRP subsidies.
43. Other current liabilities – €14,760 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
Current accrued expenses and deferred income
Liabilities for closed energy commodity derivatives
Dividends
Liabilities for tax partnerships < 12 months
Sundry current payments on account
Other liabilities
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
1,882
5,479
503
1,034
235
314
437
2,470
271
144
1,991
14,760
2,094
2,115
519
1,046
215
441
285
2,228
241
201
2,328
11,713
(212)
3,364
(16)
(12)
20
(127)
152
242
30
(57)
(337)
3,047
-10.1%
-
-3.1%
-1.1%
9.3%
-28.8%
53.3%
10.9%
12.4%
-28.4%
-14.5%
26.0%
Notes to the consolidated financial statements
375
The change in “other current liabilities” mainly reflects:
• the decrease in “amounts due to customers”, which
mainly reports the change in security deposits from cus-
tomers in Italy in line with the decrease in the number
of customers served by market companies, offset by the
increase in trade receivables following the restoration of
distribution system costs. In Italy, the item also includes
the decrease in various sundry amounts due to custom-
ers, mainly for the amounts relating to VAT recovery on
uncollected receivables, amounts available to customers
and refunds to be made, on behalf of the distribution
companies, to customers moved from the regulated
market to the free market for exceeding rate limits in
previous years. The decrease was offset by the increase,
in the distribution segment, in amounts collected and in
processing and in liabilities for indemnities;
• the increase in “amounts due to institutional market
44. Trade payables – €15,821 million
The item amounted to €15,821 million (€17,641 million at
December 31, 2022) and includes payables in respect of
electricity supplies, fuel, materials, equipment associated
with tenders, and other services.
operators”, mainly attributable to Italy, and in particular
e-distribuzione SpA, for the progressive restoration, in
2023, of charges relating to the support of renewable
energy and cogeneration, and of other charges (Asos
and Arim components) determined in ARERA Resolu-
tions nos. 735/2022, 134/2023, 297/2023 and 419/2023,
and Spain, in particular Edistribución Redes Digitales, for
an increase in amounts due to the local regulator Comis-
ión Nacional de los Mercados y la Competencia (CNMC);
• the increase in liabilities for “dividends” to be distributed
to shareholders, essentially those of the Parent Company
Enel SpA and the Spanish subsidiary Endesa SA;
• the increase in liabilities in respect of derivatives to be
settled on energy commodities in Italy;
• the decrease in “other liabilities”, mainly attributable to a
decline in liabilities in Spain and Brazil.
More specifically, trade payables falling due in less than 12
months amounted to €15,487 million (€17,605 million at
December 31, 2022) while those falling due in more than
12 months amounted to €334 million (€36 million at De-
cember 31, 2022).
45. Other current financial liabilities – €909 million
Millions of euro
Accrued financial expense and deferred financial income
Other current financial liabilities included in net financial debt
Other liabilities
Total
at Dec. 31, 2023 at Dec. 31, 2022
Change
734
1
174
909
710
-
143
853
24
1
31
56
3.4%
-
21.7%
6.6%
The increase in other current financial liabilities is mainly
attributable to the increase in accrued financial expense.
The item also includes current financial liabilities in re-
spect of the deficit of the Spanish electrical system in the
amount of €1 million included in net financial debt.
376 Integrated Annual Report 2023
Information on the consolidated statement of cash flows
46. Cash flows
Millions of euro
Cash and cash equivalents at the beginning of the year(1)
Cash flows from operating activities(2)
Cash flows from/(used in) investing activities
of which discontinued operations
Cash flows from financing activities(2)
of which discontinued operations
of which discontinued operations
Impact of exchange rate fluctuations on cash and cash equivalents
Cash and cash equivalents at the end of the year(3)
2023
11,543
14,620
132
(10,610)
(442)
(8,361)
(16)
(49)
7,143
2022
8,990
8,649
(391)
(13,626)
(351)
7,394
656
136
11,543
Change
2,553
5,971
3,016
(15,755)
(185)
(4,400)
(1) Of which cash and cash equivalents equal to €11,041 million at January 1, 2023 (€8,315 million at January 1, 2022), short-term securities equal to €78 million
at January 1, 2023 (€88 million at January 1, 2022), cash and cash equivalents pertaining to “Assets classified as held for sale” in the amount of €98 million
at January 1, 2023 (€44 million at January 1, 2022) and cash and cash equivalents pertaining to “Discontinued operations” equal to €326 million at January
1, 2023 (€543 million at January 1, 2022).
In order to improve presentation, for comparative purposes only, realized financial income and expense connected solely with borrowings have been re-
classified from “Collections/(Payments) associated with derivatives connected with borrowings” in the section on cash flows from financing activities to the
items “Interest income and other financial income collected” and “Interest expense and other financial expense paid” included in cash flows from operating
activities.
(2)
(3) Of which cash and cash equivalents equal to €6,801 million at December 31, 2023 (€11,041 million at December 31, 2022), short-term securities equal to
€81 million at December 31, 2023 (€78 million at December 31, 2022), cash and cash equivalents pertaining to “Assets classified as held for sale” in the
amount of €261 million at December 31, 2023 (€98 million at December 31, 2022) and cash and cash equivalents pertaining to “Discontinued operations”
equal to €326 million at December 31, 2022.
Cash flows from operating activities in 2023 was a posi-
tive €14,620 million, an increase of €5,971 million on 2022,
mainly attributable to lower cash requirements connected
with changes in net working capital.
Cash flows used in investing activities in 2023 came to
€10,610 million, from €13,626 million in 2022.
More specifically, investments in property, plant and
equipment, intangibles, property investment and contract
assets came to €13,563 million (including €849 million
classified as available for sale), a decrease on 2022.
Investments in companies or business units, net of cash
and cash equivalents acquired, amount to €17 million (in
2022 they came to €1,275 million and mainly referred to
the acquisition by Enel Produzione SpA of 100% of ERG
Hydro Srl (now Enel Hydro Appennino Centrale Srl), for
a consideration of €1,196 million net of cash and cash
equivalents acquired of €69 million.
Disposals of businesses or business units, net of cash and
cash equivalents sold, amount to €2,083 million and main-
ly refer to:
• the sale by Enel Argentina of the entire stake held in
Enel Generación Costanera for €28 million, net of cash
and cash equivalents sold of €14 million;
• the sale by Enel Green Power India Private Limited of
the entire stake held in Khidrat Renewable Energy Pri-
vate Limited for €4 million;
• the sale to YPF and Pan American Sur SA of the stakes
held in Inversora Dock Sud SA and Central Dock Sud SA,
for a total amount of about €29 million, net of cash and
cash equivalents sold of €19 million;
• the sale of 80% of the stake held in the Colombian bus
company Colombia ZE SAS for about €6 million;
• the sale of 50% of the two companies holding all the
Group assets dedicated to renewables in Australia,
more specifically Enel Green Power Australia (Pty) Ltd
and Enel Green Power Australia Trust, to INPEX Corpo-
ration, for a total amount of €121 million, net of cash
and cash equivalents sold of €21 million;
• the sale of the stakes held in Romania for a total amount
of €1,013 million, net of cash and cash equivalents sold
of €228 million;
• the sale of the interest held in Transmisora de Energía
Renovable, in Guatemala, for a total of €22 million, net
of cash and cash equivalents sold of €11 million;
• the sale to Sonnedix of the interest held by Enel Chile in
Arcadia Generación Solar SA, for a total of €533 million,
net of cash and cash equivalents sold of €2 million;
• the sale of 50% of Enel Green Power Hellas, Enel Green
Power wholly-owned subsidiary dedicated to renew-
ables in Greece, to Macquarie Asset Management, for
a total of €322 million, net of cash and cash equivalents
sold of €29 million.
Notes to the consolidated financial statements
377
Cash flows from/(used in) other investing activities in 2023
came to €474 million and mainly reflects:
• the sale of the entire stake held in Tecnatom SA for a
total of €26 million. The transaction had no impact on
profit or loss;
• the sale of the stake held in Rusenergosbyt LLC for €83
million;
• minor disposals mainly in Italy, Iberia, North America and
Latin America.
Cash flows from financing activities came to a negative
€8,361 million, compared with a positive €7,394 million in
2022, mainly reflecting:
• the change in net financial debt (as the balance be-
tween repayments, new borrowings and other changes)
of €3,985 million;
• distribution of dividends in the amount of €5,135 mil-
lion, plus €182 million paid to holders of perpetual hy-
brid bonds;
• the issue of hybrid bonds in the amount of €986 million;
• capital increases in subsidiaries with no change in con-
trol in the amount of €25 million, particularly in Australia.
In 2023, cash flow used in investing activities of €10,610
million and financing activities of €8,361 million fully ab-
sorbed the cash flows from operating activities in the
amount of €14,620 million. The difference is reflected in
a decrease in cash and cash equivalents, which at De-
cember 31, 2023 came to €7,143 million, from €11,543
million at the end of 2022. The change was also affected
by effects associated with negative developments in the
exchange rates of local currencies against the euro, in the
amount of €49 million.
47. Net financial position and long-term financial assets and securities – €60,163 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 position.
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(3)
Notes at Dec. 31, 2023 at Dec. 31, 2022
Change
38
41
38
38
29.1
30.1
35
61,085
8
4,769
1
9,086
(3,837)
(4,148)
(6,801)
60,163
68,191
(7,106)
-10.4%
-
8
-
18,392
(13,623)
-74.1%
-
2,835
(4,213)
(13,501)
(11,041)
60,663
1
6,251
376
9,353
4,240
(500)
-
-
8.9%
69.3%
38.4%
-0.8%
(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.
(3)
In order to improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022 in accordance with the new
representation of net financial debt by the Enel Group.
The financial position is reported in compliance with
Guideline 39, issued on March 4, 2021 by ESMA and ap-
plicable as from May 5, 2021, and with warning notice
no. 5/2021 issued by CONSOB on April 29, 2021, which
replaced the references to the CESR Recommendations
and the references in Communication no. DEM/6064293
of July 28, 2006 regarding the net financial position.
The net financial debt of the Enel Group at December 31,
2023 and December 31, 2022 is reconciled with net finan-
cial debt as provided for in the presentation methods of
the Enel Group.
378 Integrated Annual Report 2023
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)
at Dec. 31, 2023 at Dec. 31, 2022
Change
23
4,664
4,687
2,114
81
3,060
1,007
4,148
10,949
(393)
(2,499)
(1,878)
(4,770)
(1,992)
(6,763)
(331)
(9,086)
(13,856)
(2,907)
(14,500)
(3,014)
35
8,968
9,003
2,038
78
10,585
2,838
13,501
24,542
(1,320)
(13,838)
(3,234)
(18,392)
(890)
(1,612)
(333)
(2,835)
(21,227)
3,315
(15,261)
(2,851)
(12)
(4,304)
(4,316)
76
3
(7,525)
(1,831)
(9,353)
(13,593)
927
11,339
1,356
13,622
(1,102)
(5,151)
2
(6,251)
7,371
(6,222)
761
(163)
598
-34.3%
-48.0%
-47.9%
3.7%
3.8%
-71.1%
-64.5%
-69.3%
-55.4%
70.2%
81.9%
41.9%
74.1%
-
-
0.6%
-
34.7%
-
5.0%
-5.7%
3.3%
Non-current financial debt (excluding current portion and debt
instruments)
(17,514)
(18,112)
Bonds
(43,579)
(50,079)
6,500
13.0%
Trade payables and other non-interest-bearing non-current liabilities with
a significant financing component
Non-current financial position
-
-
(61,093)
(68,191)
Financial assets in respect of “Assets classified as held for sale”
262
543
Financial liabilities in respect of “Liabilities included in disposal groups
classified as held for sale“
(1,150)
(1,435)
Net financial position as per CONSOB instructions
(64,888)
(65,768)
Long-term financial receivables and securities
( - ) Financial assets in respect of “Assets classified as held for sale“
( - ) Financial liabilities in respect of “Liabilities included in disposal groups
classified as held for sale“
3,837
(262)
1,150
4,213
(543)
1,435
NET FINANCIAL DEBT(3)
(60,163)
(60,663)
-
7,098
(281)
285
880
(376)
281
(285)
500
-
10.4%
-51.7%
19.9%
1.3%
-8.9%
51.7%
-19.9%
0.8%
(1)
(2)
(3)
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.
In order to improve the comparability of the figures, it was necessary to recalculate net financial debt at December 31, 2022 in accordance with the new
representation of net financial debt by the Enel Group.
The net position as per CONSOB instructions does not
include derivatives designated as hedges for hedge ac-
counting purposes or entered into for trading purposes as
they are used for hedging.
At December 31, 2023 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 €2,383 million (€3,970
million at December 31, 2022), “Current financial derivative
assets” in the amount of €6,407 million (€14,830 million
at December 31, 2022), “Non-current financial derivative
liabilities” in the amount of €3,373 million (€5,895 million
at December 31, 2022), and “Current financial derivative
liabilities” in the amount of €6,461 million (€16,141 million
at December 31, 2022).
Notes to the consolidated financial statements
379
Financial instruments
48. 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.
48.1 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
Non-current
Current
Financial assets measured at amortized cost
Financial assets at FVOCI
Financial assets at FVTPL
Derivative financial assets at FVTPL
Other financial assets at FVTPL
Total financial assets at FVTPL
Derivative financial assets designated as hedging instruments
Fair value hedge derivatives
Cash flow hedge derivatives
Total derivative financial assets designated as hedging instruments
Notes
48.1.1
48.1.2
48.1.3
48.1.3
48.1.4
48.1.4
at
Dec. 31, 2023
at
Dec. 31, 2022
at
Dec. 31, 2023
at
Dec. 31, 2022
5,709
882
206
4,341
4,547
113
2,064
2,177
5,732
901
473
3,442
3,915
37
3,460
3,497
28,495
81
4,443
219
4,662
-
1,964
1,964
35,202
40,176
279
12,075
1,048
13,123
-
2,755
2,755
56,333
TOTAL
13,315
14,045
For more information on the recognition and classification
of current and non-current derivative assets, please see
note 51 “Derivatives and hedge accounting”.
For more information on fair value measurement, please
see note 52 “Assets and liabilities measured at fair value”.
48.1.1 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
at
Dec. 31, 2023
Notes
at
Dec. 31, 2022 Notes
at
Dec. 31, 2023
at
Dec. 31, 2022
-
1,726
-
-
-
1,388
-
-
3,332
3,767
35
34
30.1
30.1
30.1
295
29
6,772
16,047
1,007
2,899
30
14
10,169
15,217
2,838
8,319
2,090
12
282
5,732
1,726
1,531
28,495
40,176
310
341
5,709
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
34
29.1
29
380 Integrated Annual Report 2023
Impairment of financial assets measured at amortized cost
Financial assets measured at amortized cost amounted to
€34,202 million at December 31, 2023 (€45,788 million at
December 31, 2022) and are recognized net of allowances
for expected credit losses totaling €4,098 million at De-
cember 31, 2023 (€4,087 million at the end of the previous
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
shortfalls) 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 receiv-
ables. This approach, based on an assessment of any
significant increase in credit risk since initial recogni-
tion, is performed comparing the PD at origination with
PD at the reporting date, at each reporting date.
Then, based on the results of the assessment, a loss
allowance 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;
Millions of euro
at Dec. 31, 2023
Expected
credit loss
allowance
Gross amount
Cash and cash equivalents
Trade receivables
Loan assets
Other financial assets at amortized cost
Total
6,772
21,548
7,579
2,403
38,302
-
3,775
311
12
– 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 in-
formation is available without undue cost or effort to
measure expected credit losses on an individual instru-
ment 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,
transferred 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.
at Dec. 31, 2022
Expected
credit loss
allowance
-
3,783
248
56
Total Gross amount
6,772
17,773
7,268
2,391
10,169
20,388
17,262
2,176
Total
10,169
16,605
17,014
2,120
4,098
34,204
49,995
4,087
45,908
Notes to the consolidated financial statements
381
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).
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,
considering a specific definition of default.
Based on each business and local regulatory framework,
as well as differences between customer portfolios, in-
cluding their default and recovery rates (comprising ex-
pectations for recovery beyond 90 days):
• the Group mainly defines a defaulted position as one
that is 180 days past due. Accordingly, beyond this time
limit, trade receivables are presumed to be credit im-
paired); and
Millions of euro
Opening balance at Jan. 1, 2022
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2022
Opening balance at Jan. 1, 2023
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2023
The following table reports changes in the allowance for
expected credit losses on trade receivables in accordance
with the simplified approach.
Millions of euro
Opening balance at Jan. 1, 2022
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2022
Opening balance at Jan. 1, 2023
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2023
382 Integrated Annual Report 2023
• specific clusters are defined on the basis of specific
markets, business and risk characteristics.
Contract assets substantially have the same risk charac-
teristics as trade receivables for the same types of con-
tracts.
In order to measure the ECL for trade receivables on a col-
lective basis, as well as for contract assets, the Group uses
the following 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
issued but not past due and invoices to be issued.
The following table reports changes in the allowance for
expected credit losses on loan assets in accordance with
the general approach.
ECL 12-month allowance
ECL lifetime allowance
65
22
-
-
(58)
29
29
-
-
(32)
45
42
169
5
-
(11)
56
219
219
36
11
(6)
9
269
3,663
1,375
(766)
(265)
(224)
3,783
3,783
1,384
(1,136)
(210)
(46)
3,775
The following table reports changes in the allowance for
expected credit losses on other financial assets at amor-
tized cost in accordance with the simplified approach.
Millions of euro
Opening balance at Jan. 1, 2022
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2022
Opening balance at Jan. 1, 2023
Accruals
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2023
ECL lifetime allowance
154
180
-
(1)
(277)
56
56
149
-
(1)
(192)
12
Note 49 “Risk management” provides additional informa-
tion on the exposure to credit risk and expected losses.
48.1.2 Financial assets at fair value through other
comprehensive income
The following table shows financial assets at fair value
through other comprehensive income by nature, broken
down into current and non-current financial assets.
Millions of euro
Non-current
Current
Investments in other companies at FVOCI
Securities
Receivables and other financial assets at FVOCI
Total
Changes in financial assets at FVOCI
Investments in other companies
Millions of euro
Opening balance at Jan. 1, 2023
Purchases
Sales
Changes in fair value through OCI
Other changes
Closing balance at Dec. 31, 2023
Securities and other receivables at FVOCI
Millions of euro
Opening balance at Jan. 1, 2023
Purchases
Sales
Changes in fair value through OCI
Reclassifications
Other changes
Closing balance at Dec. 31, 2023
Notes
29
29.1
at
Dec. 31, 2023
at
Dec. 31, 2022 Notes
at
Dec. 31, 2023
at
Dec. 31, 2022
338
505
39
882
30.1
360
447
94
901
-
81
-
81
-
78
201
279
Non-current
Current
360
-
(7)
(15)
-
338
-
-
-
-
-
-
Non-current
Current
447
160
(14)
17
(105)
-
505
78
-
(15)
-
105
(87)
81
Notes to the consolidated financial statements
383
48.1.3 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
Securities
Equity investments in other companies at FVTPL
Financial assets from service concession arrangements at FVTPL
Financial assets from joint development agreements (JDA) at FVTPL
Other financial assets at FVTPL
Total
Notes
51
29
29
at
Dec. 31, 2023
at
Dec. 31, 2022 Notes
at
Dec. 31, 2023
at
Dec. 31, 2022
206
473
-
-
8
-
-
6
51
35
30.1
4,080
3,436
123
130
-
-
30,
30.1
4,443
29
12,075
872
-
-
-
-
-
-
-
-
190
176
4,547
3,915
4,662
13,123
48.1.4 Derivative financial assets designated as hedging
instruments
For more information on derivative financial assets, please
see note 51 “Derivatives and hedge accounting”.
48.2 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 lia-
bilities, showing hedging derivatives and derivatives mea-
sured 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
48.2.1
48.4
48.4
48.4
at
Dec. 31, 2023
at
Dec. 31, 2022
at
Dec. 31, 2023
at
Dec. 31, 2022
61,734
68,432
39,784
45,697
204
204
105
3,064
3,169
588
588
191
5,116
5,307
4,485
4,485
17
1,959
1,976
11,642
11,642
-
4,499
4,499
TOTAL
65,107
74,327
46,245
61,838
For more information on fair value measurement, please
see note 52 “Assets and liabilities measured at fair value”.
384 Integrated Annual Report 2023
48.2.1 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
48.3 Borrowings
Notes
48.3
44
at
Dec. 31, 2023
at
Dec. 31, 2022 Notes
at
Dec. 31, 2023
at
Dec. 31, 2022
61,085
68,191
-
334
315
-
36
205
48.3
48.3
44
9,086
4,769
15,487
10,442
2,835
18,392
17,605
6,865
61,734
68,432
39,784
45,697
48.3.1 Long-term borrowings (including the portion
falling due within 12 months) – €70,171 million
The following table reports the nominal value, carrying
amount and fair value of long-term borrowing, including
the portion falling due within 12 months.
Long-term borrowings by category and type of interest rate
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
Changes
in
carrying
amount
Fair
value
at Dec. 31, 2023
at Dec. 31, 2022
Bonds:
- listed, fixed rate
29,539
29,163
4,686
24,477
27,885
30,355
29,892
- listed, floating rate
2,643
2,622
623
1,999
2,641
2,569
2,547
- unlisted, fixed rate
18,336
18,129
1,357
16,772
17,842
18,959
18,727
- unlisted, floating rate
428
428
97
331
456
525
525
978
537
-
97
28,914
27,468
(729)
2,010
2,473
75
18,727
17,249
(598)
428
600
(97)
Total bonds
50,946
50,342
6,763
43,579
48,824
52,408
51,691
1,612
50,079
47,790
(1,349)
Bank borrowings:
- fixed rate
3,874
3,822
853
2,969
3,746
3,367
3,273
- floating rate
12,664
12,629
1,139
11,490
12,892
12,884
12,848
- use of revolving credit
lines
41
41
-
41
41
30
30
211
677
2
3,062
3,021
12,171
12,570
549
(219)
28
26
11
Total bank borrowings
16,579
16,492
1,992
14,500
16,679
16,281
16,151
890
15,261
15,617
341
Leases:
- fixed rate
- floating rate
Total leases
Other non-bank
borrowings(1):
- fixed rate
- floating rate
Total other non-bank
borrowings
Total fixed-rate
borrowings
Total floating-rate
borrowings
2,852
2,852
53
53
256
12
2,596
2,852
2,630
2,630
41
53
42
42
2,905
2,905
268
2,637
2,905
2,672
2,672
426
6
432
426
6
432
63
-
63
363
6
369
426
6
432
504
8
512
504
8
512
251
10
261
70
2
72
2,379
2,630
32
42
2,411
2,672
434
6
504
12
222
11
233
(78)
(2)
440
516
(80)
55,027
54,392
7,215
47,177
52,751
55,815
55,026
1,510
53,516
50,872
(634)
15,835
15,779
1,871
13,908
16,089
16,058
16,000
1,325
14,675
15,723
(221)
TOTAL
70,862
70,171
9,086
61,085
68,840
71,873
71,026
2,835
68,191
66,595
(855)
(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
385
The table below reports long-term financial debt by cur-
rency and interest rate.
Long-term borrowing (including the portion falling due within 12 months) by currency and interest rate
Millions of euro
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
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, 2023
at Dec. 31, 2022
at Dec. 31, 2023
at Dec. 31, 2022
35,865
36,166
34,993
35,383
24,601
24,847
26,930
27,209
4,612
1,884
2,229
382
510
-
88
4,720
1,888
2,255
382
514
-
90
4,470
1,310
1,899
359
526
429
110
4,610
1,310
1,926
360
531
429
115
2.5%
4.9%
4.6%
13.5%
10.5%
1.8%
5.1%
2.8%
5.2%
4.8%
13.5%
10.6%
1.8%
5.2%
1.9%
4.8%
4.6%
10.3%
10.0%
1.8%
5.1%
5.3%
2.1%
5.1%
4.8%
10.3%
10.2%
1.8%
5.2%
5.3%
Total non-euro currencies
34,306
34,696
36,033
36,490
TOTAL
70,171
70,862
71,026
71,873
Long-term financial debt denominated in currencies other
than the euro decreased by €1,727 million, largely attribut-
able to the changes in debt denominated in US dollars.
Change in the nominal value of long-term borrowing (including the portion falling due within 12 months)
Change in the
consolidation
Millions of euro
Nominal value
Repayments
scope New borrowings
Bonds
Borrowings
- of which leases
Total financial debt
at Dec. 31, 2022
52,408
19,465
2,672
71,873
(2,798)
(3,208)
(406)
(6,006)
(293)
(482)
(36)
(775)
1,900
4,193
677
6,093
Exchange
differences
Nominal value
at Dec. 31, 2023
(271)
(52)
(2)
(323)
50,946
19,916
2,905
70,862
The nominal value of long-term debt amounted to €70,862
million at December 31, 2023, a decrease of €1,011 million
compared with December 31, 2022. The decrease reflect-
ed repayments in the amount of €6,006 million, changes
in consolidation scope for €775 million and positive ex-
change differences of €323 million, only partially offset by
new borrowings of €6,093 million.
Repayments in 2023 involved bonds in the amount of
€2,798 million and loans in the amount of €3,208 million.
Specifically, repayments of bonds in 2023 included:
• $1,250 million (€1,132 million at December 31, 2023), in
respect of the hybrid bond issued by Enel SpA involved
in a partial tender offer in the first months of 2023 and
entirely repaid in September 2023;
• €100 million in respect of a floating-rate bond issued by
Enel Finance International, maturing in February 2023;
• 290,130 million Colombian pesos (equivalent to €68
million at December 31, 2023) in respect of a float-
ing-rate bond issued by Enel Colombia, maturing in
February 2023;
• 280,000 million Colombian pesos (equivalent to €65
million at December 31, 2023) in respect of a fixed-rate
bond issued by Enel Colombia, maturing in March 2023;
• €50 million in respect of a floating-rate bond issued by
Enel Finance International, maturing in March 2023;
• €585 million in respect of a fixed-rate bond issued by
Enel Finance International, maturing in April 2023;
• R$305 million (equivalent to €57 million at December
31, 2023), in respect of a floating-rate bond issued by
Enel Distribuição São Paulo, maturing in April 2023;
386 Integrated Annual Report 2023
• €300 million in respect of a fixed-rate bond issued by
Enel Finance International maturing in September 2023;
• R$698 million (equivalent to €130 million at December
31, 2023), in respect of a floating-rate amortizing bond
issued by Enel Distribuição São Paulo maturing in Sep-
tember 2023.
The main repayments of loans made during the year in-
cluded:
• €200 million in respect of floating-rate revolving credit
lines of Enel SpA;
• €367 in respect of sustainable loans of Group’s Italian
companies;
• €1,493 million in respect of Endesa loans, of which €452
million in sustainable loans;
• the equivalent of €322 million relating to South Ameri-
can companies.
New borrowings in 2023 involved €1,900 million in bonds
and €4,193 million in loans.
The table below shows the main characteristics of financial
transactions carried out in 2023 and translated into euros
at the exchange rate prevailing at December 29, 2023.
Issuer/Borrower
Issue/Grant
date
Amount in
millions of euro Currency
Interest rate
Interest rate
type
Maturity
Bonds
Total bonds
Bank borrowings
Total bank
borrowings
Enel Finance
International
Enel Finance
International
Enel Distribuição
Ceará
Enel Distribuição
Ceará
Enel Distribuição
Ceará
20.02.2023
20.02.2023
11.01.2023
11.05.2023
26.06.2023
Enel SpA
24.07.2023
e-distribuzione
20.10.2023
Enel X Way Italia
07.08.2023
Enel Italia
15.06.2023
Enel Finance
America
04.04.2023
Endesa
30.04.2023
Endesa
03.05.2023
Endesa
04.05.2023
Endesa
05.05.2023
Endesa
03.07.2023
Endesa
21.12.2023
Enel Chile
13.04.2023
Enel Chile
21.07.2023
Enel Chile
20.12.2023
Enel Distribuição
São Paulo
20.04.2023
Enel Colombia
12.04.2023
Enel Colombia
30.11.2023
Enel Colombia
21.12.2023
EUR
EUR
BRL
BRL
BRL
EUR
EUR
EUR
EUR
4.00%
Fixed rate
20.02.2031
4.50%
Fixed rate
20.02.2043
CDI + 1.48%
Floating rate
11.01.2026
CDI + 1.65%
Floating rate
15.05.2024
CDI + 1.65%
Floating rate
28.06.2024
Euribor 3M + 0.35%
Floating rate
03.05.2024
Euribor 6M + 0.55%
Floating rate
20.10.2038
Euribor 6M + 0.56%
Floating rate
09.08.2038
Euribor 6M + 0.56%
Floating rate
15.06.2038
USD SOFR 6M CPM + 1.22%
Floating rate
15.05.2034
EUR
EUR
EUR
EUR
EUR
EUR
USD
USD
USD
USD
COP
COP
COP
0.26%
4.18%
3.98%
4.63%
Fixed rate
31.07.2028
Fixed rate
03.05.2028
Fixed rate
04.05.2028
Fixed rate
05.05.2028
Euribor 6M + 0.80%
Floating rate
28.06.2035
Euribor 6M + 0.72%
Floating rate
21.12.2028
SOFR 1M + 1.33%
Floating rate
26.06.2024
5.46%
5.62%
Fixed rate
21.07.2038
Fixed rate
21.12.2038
4.38%
Fixed rate
20.04.2038
IBR O/N 3M + 3.7%
Floating rate
12.04.2028
IBR O/N 3M + 3.1%
Floating rate
15.10.2031
IBR 3M + 3.85%
Floating rate
21.12.2027
750
750
177
93
121
1,891
200
500
70
60
335
50
425
75
125
300
400
68
72
74
50
160
283
70
3,317
Notes to the consolidated financial statements
387
The following table reports the impact on gross long-term
debt of hedges to mitigate currency risk.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Initial debt structure
Impact
of hedge
Debt structure after
hedging
Initial debt structure
Impact
of hedge
Debt structure after
hedging
Carrying
amount
Nominal
value
%
Carrying
amount
Nominal
value
%
35,865
36,166
51.0%
21,862
58,028
81.9% 34,993
35,383
49.2%
23,473
58,856
81.9%
24,601
24,847
35.1%
(17,850)
6,997
9.9%
26,930
27,209
37.9%
(19,759)
7,450
10.4%
4,610
6.4%
(4,610)
4,612
1,884
2,229
382
510
-
88
4,720
1,888
2,255
382
514
-
90
6.7%
2.7%
3.2%
0.5%
0.7%
-
0.1%
(4,720)
-
1,047
(382)
-
-
43
-
1,888
3,302
-
514
-
133
-
2.7%
4.7%
-
0.7%
-
0.2%
4,470
1,310
1,310
1,899
1,926
359
526
429
110
360
531
429
115
1.8%
2.7%
0.5%
0.7%
0.6%
0.2%
-
1,205
(360)
-
-
51
-
1,310
3,131
-
531
429
166
-
1.8%
4.4%
-
0.7%
0.6%
0.2%
34,306
34,696
49.0% (21,862)
12,834
18.1% 36,033
36,490
50.8% (23,473)
13,017
18.1%
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Other currencies
Total non-euro
currencies
TOTAL
70,171
70,862 100.0%
-
70,862
100.0%
71,026
71,873 100.0%
-
71,873
100.0%
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
2023
Nominal
amount
pre-hedge
20,604
55,027
75,631
%
27.2%
72.8%
Nominal
amount
post-hedge
17,241
58,389
75,630
%
22.8%
77.2%
Nominal
amount
pre-hedge
34,450
55,815
90,265
Floating rate
Fixed rate
Total
2022
%
38.2%
61.8%
Nominal
amount
post-hedge
31,353
58,912
90,265
%
34.7%
65.3%
At December 31,2023, 27.2% of the nominal value of long-
and medium-term financial debt was floating rate (38.2%
at December 31, 2022). Taking account of hedges of in-
terest rates considered effective pursuant to the IFRS-EU,
22.8% of the nominal value of long- and medium-term fi-
nancial debt was exposed to interest rate risk at Decem-
ber 31, 2023 (34.7% at December 31, 2022). These figures
are in line with the limits established in the risk manage-
ment policy.
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. They include in particular bond
issues carried out within the framework of the Global/Euro
Medium-Term Notes program, issues of subordinated un-
convertible hybrid bonds (so-called “hybrid bonds”) and
loans granted by banks and other financial institutions (in-
cluding 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 programs 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
regarding bonds issued by Enel Finance International NV
on the US market guaranteed by Enel SpA can be summa-
rized as follows:
• negative pledge clauses under which the issuer and
the guarantor may not establish or maintain mortgag-
es, liens or other encumbrances on all or part of their
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;
388 Integrated Annual Report 2023
• cross-default clauses, under which the occurrence of
a default event in respect of a specified financial liabil-
ity (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
become 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 guar-
anteed by Enel SpA, linked to the achievement of a num-
ber of the Sustainable Development Goals (SDGs) of the
United Nations that contain the same covenants as other
bonds of the same type.
In 2022, Enel Finance America LLC issued a “sustainable”
bond of the same type, guaranteed by Enel SpA, on the
US market.
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:
• subordination clauses, under which each hybrid bond
is subordinate to all other bonds issued by the com-
pany and has the same seniority with all other hybrid
financial instruments issued, being senior only to equity
instruments;
• 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 SpA 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:(52)
• negative pledge clauses, under which the borrower
and, in some cases, the guarantor are subject to lim-
itations on the establishment of mortgages, liens or
other encumbrances on all or part of their respective
assets, with the exception of expressly permitted en-
cumbrances;
• disposals clauses, under which the borrower and, in
some cases, the guarantor may not dispose of their
assets or operations, with the exception of expressly
permitted disposals;
• pari passu clauses, under which the payment under-
takings of the borrower have the same seniority as its
other unsecured and unsubordinated payment obliga-
tions;
• 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 financ-
ing 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 li-
abilities in question, which become immediately repay-
able.
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
ceases 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 EBITDA.
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) contains covenants and
events of default typical of international business practice.
(52) The sustainability-linked loan entered into on September 30, 2022, granted by EKF Denmark’s Export Credit Agency and Citi to Enel Finance America LLC
as borrower and Enel SpA (as guarantor), provide for a number of additional covenants, such as:
• a “reputational damage” clause, under which the lending bank can request the cancellation of its financial commitment undertaken by it and the early
payment of the sums disbursed if it has suffered ascertained harm to its own reputation or that of other persons as a result of substantial breach of certain
regulations;
• the commitment, also of the guarantor, to ensure compliance with certain environmental and social regulations and standards.
Notes to the consolidated financial statements
389
48.3.2 Short-term borrowings – €4,769 million
At December 31, 2023, short-term borrowings totaled
€4,769 million, a decrease of €13,623 million compared
with December 31, 2022, 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, 2023
at Dec. 31, 2022
393
2,499
1,383
494
4,769
1,320
13,838
1,513
1,721
18,392
Change
(927)
(11,339)
(130)
(1,227)
(13,623)
(1) Does not include current financial liabilities included in “Other current financial liabilities” in net short-term financial debt.
Commercial paper liabilities totaling €2,499 million con-
cerned issues by Enel Finance International and Enel Fi-
nance America.
The main commercial paper programs include:
• €8,000 million of Enel Finance International;
• €5,000 million of Endesa;
• $5,000 million (equivalent to €4,526 million at Decem-
ber 31, 2023) of Enel Finance America.
At December 31, 2023, the whole amount of commercial
paper issues, equal to €2,499 million, was linked to sus-
tainability objectives.
Sustainability-linked finance at Enel
The new sustainability-linked bond issues, together with all
the sustainable financing arranged in the last year, made it
possible to reach a 64% ratio of sustainable sources of fi-
nancing to the Group’s total gross debt at the end of 2023,
with a goal of reaching around 70% in 2026.
Shown below are the KPIs and targets included in the
latest update of Enel’s Sustainability-Linked Financing
Framework, published in January 2024.
KPI
Actual value
Sustainability Performance Targets (SPTs)
Intensity of Scope 1 GHG emissions related to
power generation (gCO2eq/kWh)
Intensity of Scope 1 and Scope 3 GHG
emissions related to Integrated Power
(gCO2eq/kWh)
Absolute Scope 3 GHG emissions related to
retail gas (MtCO2eq)
Percentage of installed renewables capacity (%)
Percentage of capital expenditure aligned with
the EU taxonomy (%)
2023
2023
2024
160
148
140
168
16.8
68.2
84.8
65
69
2025
130
135
20.9
73
2026
2030
2040
125
135
20.0
74
72
73
11.4
80
0
0
0
100
>80
(2023-2025)(53)
>80
(2024-2026)(54)
Developments in the indicators shown in the table are pe-
riodically verified by an external auditor.
The war in Ukraine and the resulting restrictions on gas
imports from Russia into the EU, which caused a decrease
in gas supplies accompanied by a surge in wholesale elec-
tricity and gas prices, with serious effects for households
and businesses, prompted EU governments to implement
a series of policy responses to mitigate the impact of ris-
ing costs and ensure the stability of the energy system.
Despite these policy measures, the Group managed to re-
duce direct and indirect greenhouse gas emissions along
the entire value chain by 26.3% overall compared with
the previous year. Furthermore, the Group also reduced
the intensity of Scope 1 GHG emissions related to power
generation by over 30.6%, going from 229 gCO2eq/kWh in
2022 to 160 gCO2eq/kWh in 2023. This reduction reflected
a 12.9% increase in consolidated renewables generation
and a 37.5% reduction in consolidated thermal generation
compared with 2022, a consequence of the Group’s strat-
egy to shift its generation mix towards renewables and to
advance the decarbonization process.
(53) SPT with cumulative observation period of 2023-2025.
(54) SPT with cumulative observation period of 2024-2026.
390 Integrated Annual Report 2023
However, due to the unprecedented crisis faced by the Eu-
ropean energy system in 2022 and 2023, the Group’s emis-
sions reduction in 2023 was not sufficient to achieve the
Scope 1 GHG emissions intensity target related to electric-
ity generation set for 2023 as announced on the occasion
of the Capital Markets Day held in November 2020 for the
launch of the 2021-2023 Strategic Plan. As a result of the
energy crisis, the intensity value was slightly higher than the
target of 148 gCO2eq/kWh. In the absence of these factors,
Enel would have been able to reach an emissions intensity
level well below the target of 148 gCO2eq/kWh.
As a result, the Group’s sustainability-linked instruments
that set the Scope 1 emissions intensity target for elec-
tricity generation at 148 gCO2eq/kWh for 2023 will be sub-
ject to an increase in the relative step-up.
48.4 Derivative financial liabilities
For more information on derivative financial liabilities,
please see note 51 “Derivatives and hedge accounting”.
48.5 Net gain/(loss)
The following table shows net gains and losses by catego-
ry of financial instruments, excluding derivatives.
Millions of euro
2023
2022
Financial assets measured at amortized cost
(1,112)
(1,320)
(1,242)
(1,305)
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
6
-
6
Financial liabilities measured at amortized cost
(2,759)
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 14 “Net financial income/(expense) from
derivatives”.
-
-
-
-
-
-
-
-
-
-
-
(4)
(4)
9
-
9
(2,357)
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to the consolidated financial statements
391
49. Risk management
Financial risk management governance and
objectives
As part of its operations, the Enel Group is exposed to a
variety of financial risks, notably interest rate risk, com-
modity risk, currency risk, credit and counterparty risk and
liquidity risk.
As noted in the section “Risk management” in the Report
on Operations, the Group’s governance arrangements for
financial risks include risk committees and the establish-
ment of dedicated policies, measurement metrics and
operational limits. Enel’s primary objective is to mitigate
financial risks appropriately so that they do not give rise to
unexpected changes in results.
The following sections detail the above financial risks.
There were no changes in the sources of exposure to such
risks compared with the previous year.
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
Millions of euro
Floating-to-fixed interest rate swaps
Fixed-to-floating interest rate swaps
Floating-to-floating interest rate swaps
Total
For more details on interest rate derivatives, please see
note 51 “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-
hedged gross debt.
secure commercial or derivative contracts (guarantees,
cash collateral).
The Enel Group mainly manages interest rate risk through
the definition of an optimal financial structure, with the
dual goal of stabilizing borrowing costs and containing the
cost of funds.
This goal is pursued through the diversification of the
portfolio of financial liabilities by contract type, maturity
and interest rate, and modifying the risk profile of spe-
cific exposures using OTC derivatives, mainly interest rate
swaps and interest rate options. The term of such deriv-
atives does not exceed the maturity of the underlying fi-
nancial liability, so that any change in the fair value and/or
expected cash flows of such contracts is offset by a corre-
sponding 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.
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.
The following table reports the notional amount of interest
rate derivatives at December 31, 2023 and December 31,
2022, broken down by type of contract.
Notional amount
at Dec. 31, 2023
at Dec. 31, 2022
5,996
1,386
644
8,026
5,836
1,401
618
7,855
These market scenarios are obtained by simulating par-
allel increases and decreases in the yield curve as at the
reporting date.
There were no changes introduced in the methods and
assumptions 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:
392 Integrated Annual Report 2023
Millions of euro
Change in financial expense on gross long-term floating-rate debt after
hedging
Change in the fair value of derivatives classified as non-hedging
instruments
Change in the value of derivatives designated as hedging instruments
Cash flow hedges
Fair value hedges
At December 31, 2023, 22.3% (22.3% at December 31,
2022) of the nominal value 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), 82.4% of the nominal value of
gross long-term financial debt was hedged at December
31, 2023 (82.0% at December 31, 2022).
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
implements diversified revenue and cost sources geo-
graphically, and uses indexing mechanisms in commercial
contracts. Enel also uses various types of derivatives, typi-
cally on the OTC market.
The derivatives in the Group’s portfolio of financial in-
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
2023
Pre-tax impact on profit
or loss
Pre-tax impact on
equity
Basis points
Increase
Decrease
Increase
Decrease
25
25
25
25
31
32
-
-
(31)
(32)
-
-
-
-
26
(6)
-
-
(26)
6
struments include cross currency interest rate swaps,
currency forwards and currency swaps. The term of such
contracts does not exceed the maturity of the underlying
instrument, so that any change in the fair value and/or ex-
pected cash flows of such instruments offsets the corre-
sponding 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 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 (deliv-
erable forwards) or payment of the difference generated
by differences between the strike exchange rate and the
prevailing exchange rate at maturity (non-deliverable for-
wards). 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
different currencies.
The following table reports the notional amount of trans-
actions outstanding at December 31, 2023 and December
31, 2022, broken down by type of hedged item.
Notional amount
at Dec. 31, 2023
at Dec. 31, 2022
25,890
6,496
3,134
602
36,122
28,444
8,392
5,333
1,497
43,666
Notes to the consolidated financial statements
393
More specifically, these include:
• CCIRSs with a notional amount of €25,890 million to
hedge the currency risk on debt denominated in cur-
rencies other than the euro (€28,444 million at Decem-
ber 31, 2022);
• currency forwards and cross currency swaps with a to-
tal notional amount of €9,630 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 (€13,725 million at December 31, 2022).
“Other currency forwards” include OTC derivatives trans-
actions carried out to mitigate currency risk on expect-
ed cash flows in currencies other than the presentation
currency. This includes transactions connected with the
purchase of investment goods in the renewables sector
(including battery energy storage systems), as well as in-
frastructure and grids sectors (as new generation digital
meters) and operating costs for the supply of cloud ser-
vices and on revenue from the sale of renewable energy.
At December 31, 2023, 49% (51% at December 31, 2022)
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 18% at
December 31, 2023 (18% at December 31, 2022).
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 appreci-
ation/depreciation of the euro against all of the curren-
cies 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.
Millions of euro
Change in the fair value of derivatives classified as non-
hedging instruments
Change in the fair value of derivatives designated as
hedging instruments
2023
Pre-tax impact on
profit or loss
Pre-tax impact
on equity
Exchange rate
EUR appr.
EUR depr.
EUR appr.
EUR depr.
10%
494
(603)
-
-
Cash flow hedges
Fair value hedges
10%
10%
-
(44)
-
53
(2,883)
-
3,522
-
Commodity price risk
The risk of fluctuations in the price of energy commodities
such as electricity, gas, oil, CO2, and raw materials such as
minerals and metals is generated by the volatility of pric-
es and structural correlations between them, which cre-
ate uncertainty in the margin on purchases and sales of
electricity and fuels and materials at variable prices (e.g.,
indexed bilateral contracts, transactions on the spot mar-
ket, 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 mar-
gins, in accordance with the policies and operating lim-
its determined by the Group’s governance and leaving an
appropriate margin of flexibility to seize any short-term
opportunities that may present themselves, Enel devel-
ops 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 commercial agreements), as well as risk miti-
gation 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 (Power Purchase Agreements, or PPAs) and finan-
cial contracts (e.g., contracts for differences, Virtual Power
Purchase Agreements or VPPAs, 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.
394 Integrated Annual Report 2023
Volume of power
contracted (GWh)
Duration (years)
Accounting
treatment
The table below shows the main characteristics of PPA and
VPPA contracts at December 31, 2023.
Country
Type of contract
Sell/Buy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Iberia
Iberia
Iberia
Germany
United States
United States
United States
United States
United States
United States
United States
United States
South Africa
Brazil
Brazil
Chile
Chile
Chile
Chile
Chile
Colombia
Colombia
Colombia
Guatemala
Guatemala
Panama
Panama
Panama
Panama
Peru
Peru
Peru
PPA
PPA
PPA
PPA
PPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
PPA
VPPA
VPPA
PPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
VPPA
PPA
PPA
PPA
Buy
Buy
Buy
Buy
Buy
Sell
Sell
Buy
Buy
Sell
Buy
Sell
Sell
Sell
Sell
Sell
Sell
Sell
Sell
Sell
Sell
Buy
Sell
Sell
Sell
Buy
Buy
Sell
Sell
Buy
Sell
Sell
Sell
Sell
Buy
Buy
Buy
Sell
Sell
at Dec. 31, 2023
Price terms
fixed price
fixed price
floating price
floating price
fixed price
fixed price
fixed price
fixed price
fixed price
fixed price
floating price
fixed price
fixed price
fixed price
floating price
fixed price
fixed price
fixed price
floating price
floating price
17.3
35.8
1,501.5
28.7
395.9
1,801.2
800.0
30.0
22,650.0
14,010.0
44.7
49.9
15.5
2.3
3.4
6.0
6.0
194.4
12.2
1.2
fixed price
115,542.6
fixed price
37,474.9
fixed price
249,377.4
floating price
258.0
fixed price
27,828.2
fixed price
50,101.9
fixed price
98,412.7
fixed price
91,509.4
floating price
4,546.3
fixed price
56,763.5
fixed price
3,336.0
floating price
20.0
fixed price
23,858.0
floating price
4,253.0
fixed price
263.0
floating price
1,455.0
fixed price
547.1
fixed price
75,938.8
floating price
115.0
1
1
1
2
10
4
4
9
15
18
2
8-20
8-15
12-20
12
12
12
10-30
12-30
20
1-20
1-16
1-15
1-3
4 -10
5-15
1-20
1-16
1-10
1-19
1-15
1-2
3-15
5-25
7-10
1-2
1-8
1-12
2-5
FVTPL
FVTPL
FVTPL
FVTPL
Own use
exemption
CFH
CFH
FVTPL
CFH
CFH
FVTPL
CFH
FVTPL
Own use
exemption
CFH
CFH
FVTPL
Own use
exemption
Own use
exemption
FVTPL
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Own use
exemption
Notes to the consolidated financial statements
395
The residual exposure in respect of the sale of energy on
the spot market not hedged with such contracts is aggre-
gated by uniform risk factors that can be managed with
hedging transactions on the market. Proxy hedging tech-
niques can be used for the industrial portfolios when the
hedging instruments for the specific risk factors generat-
ing 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
while always complying with the limits set on the basis of
portfolio risk analysis.
The following table reports the notional amount of out-
standing transactions at December 31, 2023 and Decem-
ber 31, 2022, broken down by type of instrument.
Millions of euro
Forward and futures contracts
Swaps
Options
Total
Notional amount
at Dec. 31, 2023
at Dec. 31, 2022
44,307
7,694
1,407
53,408
114,128
11,271
504
125,903
For more details, please see note 51 “Derivatives and
hedge accounting”.
Commodity price risk sensitivity analysis
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
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
2023
Pre-tax impact on profit or loss
Pre-tax impact on equity
Commodity price
Increase
Decrease
Increase
Decrease
Change in the fair value of trading derivatives on
commodities
Change in the fair value of derivatives on commodities
designated as hedging instruments
15%
15%
(39)
(19)
40
25
-
(442)
-
437
396 Integrated Annual Report 2023
Credit and counterparty risk
The Group’s commercial, commodity and financial trans-
actions expose it to credit risk, i.e. the possibility that a
deterioration in the creditworthiness of a counterparty or
the failure to discharge 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 unfa-
vorable market conditions (replacement risk). Other risks
include the reputational and financial risks associated 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.
Accordingly, the exposure to credit and counterparty 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 in respect of non-Group
debtors);
• trading activities that involve the physical exchange
of assets or transactions in financial instruments (the
commodity portfolio);
• trading in derivatives, bank deposits and, more gener-
ally, financial instruments (the financial portfolio).
In order to minimize credit and counterparty risk, cred-
it exposures are managed 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 the region/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.
The policy for managing credit and counterparty risk as-
sociated with commercial activities provides for a prelimi-
nary assessment of the creditworthiness of counterparties
and the adoption of mitigation instruments, such as ob-
taining 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 region/countries/global busi-
ness lines, as well as with the adoption of specific stan-
dardized 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
current macroeconomic context and price scenario. This
reflects the strengthening of digital collection channels
and a sound diversification of the customer base.
Loan assets
Millions of euro
Staging
Performing
Underperforming
Non-performing
Total
at Dec. 31, 2023
Basis for recognition
of expected credit loss
allowance
12-month ECL
Lifetime ECL
Lifetime ECL
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit
loss allowance
Carrying
amount
4.0%
2.8%
6.4%
6,664
321
594
7,579
264
9
38
311
6,400
312
556
7,268
Notes to the consolidated financial statements
397
Contract assets, trade receivables and other financial assets: individual measurement
Millions of euro
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit loss
allowance
at Dec. 31, 2023
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
-
0.5%
2.0%
1.9%
5.3%
12.2%
13.2%
8.2%
83.9%
0.4%
-
-
-
-
-
-
- more than 180 days (credit impaired)
2.7%
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
-
0.7%
1.0%
1.3%
2.8%
7.1%
12.5%
5.9%
80.8%
2.2%
-
-
-
-
-
-
- more than 180 days (credit impaired)
16.3%
Total other financial assets
TOTAL
398 Integrated Annual Report 2023
83
6,225
350
103
38
41
53
49
1,474
8,333
1,690
25
-
-
-
2
-
75
1,792
10,208
-
32
7
2
2
5
7
4
1,236
1,295
7
-
-
-
-
-
-
2
9
1,304
79
5,560
477
75
36
28
24
51
1,629
7,880
1,401
35
219
-
-
-
2
147
1,804
9,763
-
41
5
1
1
2
3
3
1,317
1,373
31
-
-
-
-
-
-
24
55
1,428
Carrying
amount
83
6,193
343
101
36
36
46
45
238
7,038
1,683
25
-
-
-
2
-
73
1,783
8,904
Carrying
amount
79
5,519
472
74
35
26
21
48
312
6,507
1,370
35
219
-
-
-
2
123
1,749
8,335
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit loss
allowance
at Dec. 31, 2022
Contract assets, trade receivables and other financial assets: collective measurement
Millions of euro
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit loss
allowance
at Dec. 31, 2023
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
1.3%
2.9%
2.6%
44.3%
19.5%
25.8%
50.8%
52.9%
57.9%
-
66.7%
-
-
-
-
-
- more than 180 days (credit impaired)
50.0%
150
8,322
802
70
210
132
132
119
3,428
13,215
604
3
-
-
-
-
2
2
611
13,976
2
239
21
31
41
34
67
63
1,984
2,480
-
2
-
-
-
-
-
1
3
2,485
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
Average loss rate
(PD*LGD)
Gross carrying
amount
Expected credit loss
allowance
at Dec. 31, 2022
4.3%
2.4%
2.6%
42.3%
24.0%
29.0%
35.6%
45.0%
56.4%
-
50.0%
-
-
-
-
-
-
46
7,698
535
123
275
186
146
129
3,416
12,508
251
2
-
-
-
-
-
-
253
12,807
2
187
14
52
66
54
52
58
1,927
2,410
-
1
-
-
-
-
-
-
1
2,413
Carrying
amount
148
8,083
781
39
169
98
65
56
1,444
10,735
604
1
-
-
-
-
2
1
608
11,491
Carrying
amount
44
7,511
521
71
209
132
94
71
1,489
10,098
251
1
-
-
-
-
-
-
252
10,394
Notes to the consolidated financial statements
399
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
currencies 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
Committed credit lines
Uncommitted credit lines
Commercial paper
Total
at Dec. 31, 2023
at Dec. 31, 2022
Expiring within
one year
823
734
15,027
16,584
Expiring
beyond one
year
19,040
-
-
19,040
Expiring within
one year
355
980
3,847
5,182
Expiring
beyond one
year
19,122
-
-
19,122
Maturity analysis
The table below summarizes the maturity profile of the re-
payment plans of the Group’s gross long- and short-term
financial debt at December 31, 2023.
Millions of euro
Maturing in
Less than 3
months
From 3 months
to 1 year
2025
2026
2027
2028
Beyond
Gross long-term financial debt
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
-
186
-
-
186
63
126
-
189
76
3
79
24
-
24
4,686
437
1,357
97
6,577
790
1,013
-
1,803
180
9
189
39
-
39
3,425
342
1,351
97
5,215
231
1,479
23
1,733
267
14
281
70
14
84
3,838
435
1,126
97
3,764
221
2,448
97
946
117
2,023
-
12,504
884
9,824
40
5,496
6,530
3,086
23,252
413
2,489
-
2,902
243
9
252
69
-
69
730
1,140
18
1,888
200
3
203
44
-
44
1,006
1,410
-
589
4,972
-
2,416
5,561
166
3
169
8
-
8
1,720
12
1,732
172
-
172
Total gross long-term financial debt
478
8,608
7,313
8,719
8,665
5,679
30,717
Gross short-term financial debt
Short-term bank borrowings
Commercial paper
Cash collateral and other financing on derivatives
Other short-term financial debt(2)
Total gross short-term financial debt
TOTAL GROSS FINANCIAL DEBT
101
2,499
1,383
489
4,472
4,950
292
-
-
6
298
8,906
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,313
8,719
8,665
5,679
30,717
(1)
(2)
Includes other non-current financial borrowings presented under “Other non-current financial liabilities” in the statement of financial position.
Includes other current financial borrowings included in “Other current financial liabilities” in the statement of financial position.
400 Integrated Annual Report 2023
Commitments to purchase commodities
In conducting its business, the Enel Group has entered into
contracts to purchase specified quantities of commodi-
ties 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, 2023.
Millions of euro
Commitments to purchase commodities:
- electricity
- fuels
Total
at Dec. 31, 2023
2023-2026
2027-2031
2032-2036
Beyond
63,422
47,666
111,088
13,820
11,998
25,818
18,167
23,399
41,566
12,420
8,802
21,222
19,015
3,467
22,482
50. Offsetting financial assets and financial liabilities
At December 31, 2023 the Group did not hold offset po-
sitions in assets and liabilities, as it is not the Enel Group’s
policy to settle financial assets and liabilities on a net basis.
51. 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,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
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
556
90
646
154
99
253
4,090
4,949
11,060
16,955
4,094
4,321
101
12
113
174
1,007
883
22
15
37
336
1,854
1,270
-
-
-
54
4,393
5,560
-
-
-
9
-
-
-
1
4,053
7,416
145
1,818
19,244
26,225
2,064
3,460
10,007
11,478
1,964
-
84
858
942
-
19
1,774
1,793
-
1
205
206
-
1
472
473
-
1,734
17,511
-
3,640
-
24
49,253
4,419
12,001
19,245
52,893
4,443
12,075
-
-
-
-
389
2,366
2,755
-
74
TOTAL DERIVATIVE ASSETS
20,832
28,271
2,383
3,970
29,252
64,371
6,407
14,830
Notes to the consolidated financial statements
401
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
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
675
929
1,603
813
1,604
2,416
1,897
890
11,173
11,956
3,075
6,403
27
78
105
91
1,830
1,143
16,145
19,249
3,064
-
67
921
988
-
52
1,281
1,333
-
1
203
204
92
99
191
59
1,640
3,417
5,116
-
1
587
588
554
-
554
100
4,785
4,696
-
185
185
150
3,798
9,556
9,581
13,504
100
1,807
100
2,096
17
-
17
-
332
1,627
1,959
29
28
-
-
-
1
176
4,322
4,499
23
34
16,693
45,899
4,428
11,585
18,600
48,095
4,485
11,642
TOTAL DERIVATIVE LIABILITIES
18,737
22,998
3,373
5,895
28,735
61,784
6,461
16,141
51.1 Derivatives designated as hedging
instruments
Derivatives are initially recognized at fair value, on the
trade date of the contract, and are subsequently re-mea-
sured at their fair value. The method of recognizing the
resulting gain or loss depends on whether the derivative is
designated 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 (including Virtual PPAs) 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 objectives
and strategy. The Group also documents its assessment,
both at hedge inception and on an ongoing basis, of
whether hedging instruments are highly effective in offset-
ting 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 49 “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 purposes
(i.e. same quantity of the hedged item that the entity
actually hedges and the quantity of the hedging instru-
ment 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 economic
relationship will be provided through a qualitative anal-
ysis;
• 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 that of the hedged item, different
scenarios will be analyzed.
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 ranking
402 Integrated Annual Report 2023
is based on their effectiveness in hedging the considered
risk.
In order to evaluate the credit risk effects, the Group con-
siders the existence of risk mitigating measures (collateral,
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 hedging
ineffectiveness.
The hedge ineffectiveness will be evaluated through a
qualitative assessment or a quantitative computation, de-
pending on the following circumstances:
• if the critical terms of the hedged item and hedging
instrument match and there are no other sources of
ineffectiveness including 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 the 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 different 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 in-
strument 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 relate
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 mainly used to protect the Group
against exposures to changes in the fair value of liabilities
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 val-
ue 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 meth-
od 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 af-
fect 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 as-
sets.
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 present 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
Notes to the consolidated financial statements
403
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 mar-
ket 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 ex-
piry but also during the hedge relationship, if and only if the
new derivative meets both of the following requirements:
• 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 discon-
tinued. 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 over-
night to 12 months, in a specific currency.
In recent years there have been a number of cases of ma-
nipulation 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 bench-
marks that includes the replacement of some benchmarks
with alternative risk-free rates (the IBOR reform).
The Group’s main exposure is based on Euribor.
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 have become unrepresentative
after June 30, 2023 and the alternative reference rate is
the Secured Overnight Financing Rate (SOFR).
As a result of the IBOR reform, a number of temporary ex-
ceptions to the rules on hedge relationships have been al-
lowed in implementation of the amendments to IFRS 9 is-
sued 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 no longer any initial
uncertainty, but hedge contracts and relationships 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 over-
all number and nominal value of the contracts impacted by
the reform. In addition, a number of contractual amend-
ments have previously been implemented in contracts in-
dexed to GBP LIBOR in 2021 and others have been imple-
mented in 2023, considering that, as already mentioned,
USD LIBOR benchmarks have become unrepresentative as
from June 30, 2023.
Debt and derivatives
The Group’s floating rate debt is mainly benchmarked
against Euribor and is almost entirely hedged using finan-
cial 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 re-
quired and could therefore be implemented by the Group
in the new contracts in accordance with the evolution of
accepted market practice.
During 2023, the Group obtained new dollar loans indexed
to SOFR and focused on the implementation of how to
change all exposures from USD LIBOR to USD SOFR.
The Group’s derivative instruments are managed through
contracts that are mainly based on framework agreements
defined by the International Swaps and Derivatives Associ-
ation (ISDA).
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 discon-
tinuation of specific key benchmarks. These changes took
effect on January 25, 2021. Transactions represented 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 derivative 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.
As regards Euribor, the Group is assessing whether to: (i)
adopt that protocol in the light of its exposure and devel-
opments in the IBOR reform or (ii) adjust in advance any
contracts impacted bilaterally by the reform.
404 Integrated Annual Report 2023
Hedge relationships
At the reporting date, hedged items and hedging instru-
ments are primarily indexed to Euribor, SOFR and SONIA.
The Group has assessed the impact of uncertainty en-
gendered by the IBOR reform on hedge relationships at
December 31, 2023 with reference to both hedging in-
struments and hedged items. Both the hedged items and
the hedging instruments have changed their parameter-
ization from interbank market-based benchmarks (IBORs)
to alternative risk-free rates (RFRs) as a result of the con-
tractual amendments that have taken effect.
In particular, in order to manage the uncertainty associ-
ated with both hedging instruments and hedged items
indexed to USD LIBOR, until June 30, 2023 the Group has
continued 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:
• determining if a forecast transaction is highly probable;
• establishing whether the future hedged cash flows will
arise in a discontinued cash flow hedge relationship;
• assessing the economic relationship between the
hedged item and the hedging instrument.
The hedge relationships impacted may have become in-
effective due to different replacements of existing bench-
marks with alternative risk-free benchmarks. In order to
avoid that risk, the Group has sought to implement the
replacements at the same time.
In addition, the Group changed the reference to USD LI-
BOR in its interest rate hedging instruments used in cash
flow hedge relationships with the new, economically
equivalent, SOFR benchmark in 2023. Consequently, the
Group no longer applies the amendments to IFRS 9 issued
in September 2019 (Phase 1) to these hedge relationships
and, consequently, is applying 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 ter-
mination 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 cash flow hedge
reserve were considered on the basis of the alternative
benchmark index in relation to which the future hedged
cash flows are determined.
51.1.1 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,
2023 and December 31, 2022, broken down by maturity.
Millions of euro
At Dec. 31, 2023
Interest rate swaps
Total notional amount
Notional amount related to IRSs in euro
Average IRS rate in euro
Notional amount related to IRSs in US dollars
Average IRS rate in US dollars
2024
2025
2026
2027
2028
Beyond
Total
Maturity
708
608
4.56
46
0.70
564
564
1.92
-
879
636
2.12
-
1,975
1,532
3.38
444
3.28
19
19
0.86
-
7,926
6,500
700
3,781
3,141
2.37
210
5.05
Notes to the consolidated financial statements
405
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, 2023 and
December 31, 2022, 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, 2023
at Dec. 31, 2022
Fair value hedges
Interest rate swaps
Interest rate swaps
Cash flow hedges
Floating-rate
borrowings/bonds
Fixed-rate borrowings/
bonds
Interest rate swaps
Floating-rate bonds
Interest rate swaps
Interest rate swaps
Total
Floating-rate loan
assets
Floating-rate
borrowings
98
3
12
-
163
276
-
544
(44)
1,241
(49)
(7)
(35)
(135)
1,040
145
4,956
7,926
20
2
29
-
307
358
(2)
(90)
(44)
(9)
(7)
(152)
518
1,239
1,190
162
4,646
7,755
The following table shows the notional amount and the fair
value of hedging derivatives on interest rate risk as at De-
cember 31, 2023 and December 31, 2022, 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,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
556
556
4,144
4,144
4,700
154
154
4,958
4,958
5,112
101
101
175
175
276
22
22
336
336
358
1,229
1,229
1,997
1,997
3,226
1,603
1,603
1,040
1,040
2,643
(44)
(44)
(91)
(91)
(135)
(92)
(92)
(60)
(60)
(152)
The notional amount of derivatives classified as hedging
instruments at December 31, 2023 came to €7,926 million,
with a corresponding positive fair value of €141 million.
Compared with December 31, 2022, the notional amount
increased by €171 million, mainly reflecting:
• the expiry of interest rate swaps amounting to €159
million;
• early closure of interest rate swaps for an amount of
€150 million, following early redemption of the under-
lying;
• new interest rate swaps amounting to €800 million;
• the reduction in the notional amount of amortizing in-
terest rate swaps in the amount of €320 million.
The deterioration in the fair value of €65 million mainly re-
flects 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 2023 and the previous year.
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
406 Integrated Annual Report 2023
2023
2022
Net gain/(loss)
Net gain/(loss)
125
(132)
(7)
(84)
75
(9)
The following table shows the impact of fair value hedges
of interest rate risk in the statement of financial position at
December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Interest rate swaps
Notional
amount
1,785
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
57
57
Notional
amount
1,757
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
(70)
(70)
The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position
at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Fixed-rate borrowings
Fixed-rate bonds
Floating-rate bonds
Total
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
1,186
14
671
1,871
(43)
2
41
-
44
(2)
(107)
(65)
Cumulative
adjustment
of fair value
of hedged
item
Fair value used
to measure
ineffectiveness
in the year
(89)
2
(16)
(103)
(79)
(2)
(18)
(99)
Carrying
amount
1,138
14
576
1,728
Cash flow hedge derivatives
The following table shows the cash flows expected in
coming years from cash flow hedge derivatives on interest
rate risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2023
2024
2025
2026
2027
2028
Beyond
Cash flow hedge derivatives on interest rates
Positive fair value
Negative fair value
175
(91)
86
(8)
29
(21)
19
(20)
14
(17)
12
(13)
28
(22)
The following table shows the impact of cash flow hedges
of interest rate risk in the statement of financial position at
December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Interest rate swaps
Notional
amount
6,141
Carrying
amount
84
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
84
5,998
276
276
Notes to the consolidated financial statements
407
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Fair value
through
P&L of CFH
derivatives
designated
after initial
recognition
Hedging
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Fair value
through
P&L of CFH
derivatives
designated
after initial
recognition
Ineffective
portion of
carrying
amount
of CFH
derivatives
Hedging
reserve
Hedging
costs
reserve
Floating-rate
bonds
Floating-rate loan
assets
Floating-rate
borrowings
Total
37
7
(149)
(105)
-
-
(37)
(7)
(20)
149
(20)
105
-
-
-
-
-
-
(1)
(1)
15
9
(327)
(303)
-
-
(28)
(28)
(15)
(9)
326
302
-
-
-
-
-
-
2
2
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, 2023 and De-
cember 31, 2022.
Millions of euro
At Dec. 31, 2023
Cross currency interest rate swaps (CCIRSs)
2024
2025
2026
2027
2028
Beyond
Total
Maturity
Total notional amount of CCIRSs
4,562
2,577
1,222
2,337
2,037
13,386
26,121
Notional amount for CCIRSs EUR/USD
Average exchange rate EUR/USD
Notional amount for CCIRSs EUR/GBP
Average exchange rate EUR/GBP
Notional amount for CCIRSs EUR/CHF
Average exchange rate EUR/CHF
Notional amount for CCIRSs USD/BRL
Average exchange rate USD/BRL
Notional amount for CCIRSs EUR/BRL
Average exchange rate EUR/BRL
Currency forwards
2,213
1.13
981
0.88
242
1.07
279
5.50
445
6.25
-
-
231
5.22
231
6.05
Total notional amount of forwards
4,616
1,186
Notional amount - currency forwards EUR/USD
Average currency forward rate - EUR/USD
Notional amount - currency forwards USD/CLP
Average currency forward rate - USD/CLP
Notional amount - currency forwards EUR/CNH
Average currency forward rate - EUR/CNH
Notional amount - currency forwards USD/BRL
Average currency forward rate - USD/BRL
Notional amount - currency forwards USD/COP
3,144
1.10
1,042
1.11
938
141
873.05
885.2239
175
7.81
130
4.95
122
-
-
2
Average currency forward rate - USD/COP
4,498.97
4,597.37
408 Integrated Annual Report 2023
2,036
1.07
1,132
1.07
1,560
1.10
2,037
1.18
-
-
91
5.30
-
507
507
1.13
-
-
-
-
577
0.90
140
1.21
-
60
3.92
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,102
1.15
3,856
0.82
18,080
5,414
-
382
387
4.13
-
-
-
-
-
-
-
988
736
6,309
4,693
1,079
175
130
124
Millions of euro
At Dec. 31, 2022
Cross currency interest rate swaps (CCIRSs)
Total notional amount of CCIRSs
Notional amount for CCIRSs EUR/USD
2023
2024
2025
2026
2027
Beyond
Total
Maturity
1,908
1,171
4,831
2,290
2,648
2,107
1,265
1,171
2,380
1,615
15,701
28,733
11,529
19,883
Average exchange rate EUR/USD
1.33
1.13
1.07
1.18
1.10
1.15
Notional amount for CCIRSs EUR/GBP
Average exchange rate EUR/GBP
Notional amount CCIRSs EUR/CHF
Average exchange rate EUR/CHF
Notional amount for CCIRSs USD/BRL
Average exchange rate USD/BRL
Notional amount for CCIRSs EUR/BRL
Average exchange rate EUR/BRL
Currency forwards
-
-
140
5.22
597
6.09
958
0.88
228
1.06
288
5.50
438
6.25
Total notional amount of forwards
6,127
2,374
Notional amount - currency forwards EUR/USD
Average currency forward rate - EUR/USD
4,713
1.09
2,345
1.10
Notional amount - currency forwards USD/BRL
Average currency forward rate - USD/BRL
Notional amount - currency forwards EUR/CNH
Average currency forward rate - EUR/CNH
Notional amount - currency forwards USD/CLP
333
5.61
311
7.41
199
-
-
20
Average currency forward rate - USD/CLP
906.90
921.05
Notional amount - currency forwards USD/COP
156
2
Average currency forward rate - USD/COP
4,720.74
4,444.96
-
-
239
5.22
181
6.16
625
625
1.11
-
-
-
-
-
-
94
5.29
-
-
-
-
-
-
-
564
0.90
132
1.21
-
70
3.92
-
-
-
-
-
-
5,243
3,721
0.81
-
-
-
-
-
-
-
-
-
360
761
1,286
9,126
7,683
333
311
219
158
Notes to the consolidated financial statements
409
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, 2023 and
December 31, 2022 broken down by type of hedged item.
Millions or euro
Hedging instrument
Fair value hedges
Fair value
Notional
amount
Fair value
Notional
amount
Hedged item
Assets Liabilities
Assets Liabilities
at Dec. 31, 2023
at Dec. 31, 2022
Cross currency interest rate swaps
(CCIRSs)
Fixed-rate borrowings/bonds in
foreign currencies
Cross currency interest rate swaps
(CCIRSs)
Floating-rate borrowings in
foreign currencies
Cash flow hedges
Cross currency interest rate swaps
(CCIRSs)
Floating-rate borrowings/
financial assets in foreign
currencies
Cross currency interest rate swaps
(CCIRSs)
Fixed-rate borrowings/financial
assets in foreign currencies
Cross currency interest rate swaps
(CCIRSs)
Cross currency interest rate swaps
(CCIRSs)
Floating-rate bonds in foreign
currencies
Fixed-rate bonds in foreign
currencies
Cross currency interest rate swaps
(CCIRSs)
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 currencies
12
-
67
5
56
(78)
1,019
-
-
(36)
754
(220)
2,104
-
250
15
-
95
4
60
(99)
1,097
-
-
(76)
1,061
(233)
2,445
-
414
965
(1,724)
21,763
1,864
(1,293)
23,381
-
2
(43)
(1)
231
117
-
9
(50)
335
(6)
326
54
(126)
5,666
192
(135)
7,508
3
(12)
526
19
(23)
1,292
1,164
(2,240)
32,430
2,258
(1,915)
37,859
Cash flow hedges and fair value hedges include:
• CCIRSs with a notional amount of €24,886 million used
to hedge the currency risk on fixed-rate debt denomi-
nated in currencies other than the euro with a negative
fair value of €1,040 million;
• CCIRSs with a notional amount of €1,235 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 €44 million;
• currency forwards with a notional amount of €5,783
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
total negative fair value of €71 million;
• currency forwards with a notional amount of €526 mil-
lion and a negative fair value of €9 million, in respect
of OTC transactions to mitigate the currency risk on
expected cash flows in currencies other than the pre-
sentation currency connected with the purchase of
investment goods in the renewables (including Battery
Energy Storage Systems - BESS) 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.
The following table reports the notional amount and fair val-
ue of foreign exchange derivatives at December 31, 2023
and December 31, 2022, broken down by type of hedge.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
Derivatives
Fair value hedges
CCIRSs
Total
Cash flow hedges
Currency forwards
CCIRSs
Total
TOTAL EXCHANGE RATE
DERIVATIVES
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
90
90
99
99
1,979
13,474
15,453
4,313
16,695
21,008
12
12
59
1,093
1,152
15
15
220
2,023
2,243
929
929
4,330
11,628
15,958
998
998
4,813
10,941
15,754
(78)
(78)
(140)
(2,022)
(2,162)
(99)
(99)
(164)
(1,652)
(1,816)
15,543
21,107
1,164
2,258
16,887
16,752
(2,240)
(1,915)
410 Integrated Annual Report 2023
The notional amount of CCIRSs at December 31, 2023
amounted to €26,121 million, a decrease of €2,612 million
from €28,733 million at December 31, 2022. In particular:
• CCIRSs with a total amount of €737 million expired;
• a partial unwinding operation of CCIRSs was carried out
following the early repurchase of part of the hybrid bond
denominated in US dollars. That transaction, together
with the natural expiry of the residual portion of that li-
ability and the associated CCIRSs, caused a decrease in
the notional amount compared with December 31, 2022
of €1,171 million;
• new derivatives amounted to €109 million. The notional
amount decreased by €813 million, reflecting develop-
ments in the exchange rate of the euro against the main
other currencies and the effect of amortization.
The notional amount of currency forwards at December 31,
2023 amounted to €6,309 million (€9,126 million at Decem-
ber 31, 2022), a decrease of €2,817 million. The exposure to
currency risk, especially that associated with the US dollar,
is mainly due to purchases of natural gas, purchases of fuel
and cash flows in respect of investments.
After the turbulence experienced in raw material prices
during 2022, which led to a considerable increase in the
notional amounts hedged, the notional value of currency
hedges on energy commodities returned to normal oper-
ating levels in 2023. The deterioration of net fair value of
€137 million reflected normal developments in exchange
rates.
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 2023 and the pre-
vious year.
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
2023
2022
Net gain/(loss)
Net gain/(loss)
20
(12)
8
(119)
129
10
The following table shows the impact of fair value hedges
of currency risk in the statement of financial position at
December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Cross currency interest rate swaps (CCIRSs)
Notional
amount
1,019
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
(66)
(68)
Notional
amount
1,097
Fair value used
to measure
ineffectiveness
in the year
Carrying
amount
(84)
(87)
The following table shows the impact of the hedged item
of fair value hedges in the statement of financial position
at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
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 bonds in foreign currencies
Fixed-rate borrowings in foreign
currencies
Total
500
434
934
(77)
(7)
(84)
48
24
72
458
520
978
(106)
(8)
(114)
90
(2)
88
Notes to the consolidated financial statements
411
Cash flow hedge derivatives
The following table shows the cash flows expected in coming
years from cash flow hedge derivatives on currency risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2023
2024
2025
2026
2027
2028
Beyond
Cash flow hedge derivatives on exchange rates
Positive fair value
Negative fair value
1,152
(2,162)
358
(960)
216
(594)
258
(13)
211
(34)
273
(18)
885
(644)
The following table shows the impact of cash flow hedges
of currency risk in the statement of financial position at
December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Cross currency interest rate swaps (CCIRSs)
Currency forwards
Total
Notional
amount
Carrying
amount
25,102
6,309
31,411
(930)
(80)
(1,010)
Fair value used
to measure
ineffectiveness
in the year
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in the year
(919)
(73)
(992)
27,636
9,126
36,762
371
56
427
433
56
489
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Hedging
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Other
effects(1)
Hedging
reserve
Hedging
costs
reserve
Floating-rate
borrowings in
foreign currencies
Fixed-rate
borrowings in
foreign currencies
Floating-rate bonds
in foreign currencies
Fixed-rate bonds in
foreign currencies
Future cash flows
denominated in
foreign currencies
(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
currencies
(31)
31
219
(219)
(56)
56
-
4
-
861
(861)
(15)
43
(43)
(1)
1
-
-
72
(72)
(1)
3
(3)
(6)
Total
1,110
(1,110)
(18)
-
-
-
-
-
-
-
-
-
-
-
-
(30)
30
225
(225)
(60)
60
-
(4)
-
118
(628)
509
(56)
-
-
-
-
50
(50)
(3)
3
-
-
(60)
59
(1)
7
(7)
1
Ineffective
portion of
carrying
amount
of CFH
derivatives
(11)
-
-
-
-
-
(1)
2
Other
effects(1)
-
-
-
118
-
-
-
-
(1)
Impact connected with the change in spot exchange rates between the date the CCIRSs to hedge bonds in foreign currencies were obtained and the
actual disbursement of the loan for the CCIRSs obtained in 2022.
412 Integrated Annual Report 2023
118
(499)
379
(60)
(10)
118
Commodity price risk
Millions of euro
At Dec. 31, 2023
Commodity swaps
Notional amount on power
Average commodity swap price on power (€/MWh)
Notional amount on coal/shipping
Average commodity swap price on coal/shipping ($/ton)
Notional amount on gas
Average commodity swap price on gas (€/MWh)
Notional amount on oil
Average commodity swap price on oil ($/barrel)
Commodity forwards/futures
Notional amount on power
Average commodity forward/future price on power (€/MWh)
Notional amount on coal/shipping
Average commodity forward/future price on coal/shipping ($/ton)
Notional amount on gas
Average commodity forward/future price on gas (€/MWh)
Notional amount on CO2
Average commodity forward/future price on CO2 (€/ton)
Notional amount on oil
Average commodity forward/future price on oil ($/barrel)
Commodity options
Notional amount on power
Average commodity option price on power (€/MWh)
Notional amount on gas
Average commodity option price on gas (€/MWh)
Notional amount on oil
Average commodity option price on oil ($/barrel)
Millions of euro
At Dec. 31, 2022
Commodity swaps
Notional amount on power
Average commodity swap price on power (€/MWh)
Notional amount on coal/shipping
Average commodity swap price on coal/shipping ($/ton)
Notional amount on gas
Average commodity swap price on gas (€/MWh)
Notional amount on oil
Average commodity swap price on oil ($/barrel)
Commodity forwards/futures
Notional amount on power
Average commodity forward/future price on power (€/MWh)
Notional amount on coal/shipping
Average commodity forward/future price on coal/shipping ($/ton)
Notional amount on gas
Average commodity forward/future price on gas (€/MWh)
Notional amount on CO2
Average commodity forward/future price on CO2 (€/ton)
Notional amount on oil
Average commodity forward/future price on oil ($/barrel)
Commodity options
Notional amount on power
Average commodity option price on power (€/MWh)
Notional amount on oil
Average commodity option price on oil (€/barrel)
2024
2025
2026
2027
2028
Beyond
Total
Maturity
128
87.0
-
-
1,551
41.8
1,016
86.0
2,506
114.9
38
175.0
4,432
71.4
662
91.9
354
74.6
24
27.5
-
-
-
-
106
44.0
-
-
1,747
40.4
106
78.0
388
18.0
-
-
377
48.9
336
93.0
-
-
39
30.0
-
-
-
-
100
37.0
-
-
296
27.0
10
69.0
297
18.0
-
-
626
32.0
21
84.0
-
-
44
30.5
-
-
-
-
284
59.6
91
32.0
-
-
-
-
-
-
-
-
-
-
-
-
258
16.0
151
18.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
286
34.0
-
-
125
7.0
-
-
606
16.0
-
-
-
-
-
-
-
-
39
34.0
39
34.0
342
34.0
-
-
-
-
-
-
-
-
-
-
-
-
995
-
3,719
1,132
4,206
38
5,435
1,019
354
527
-
-
2023
2024
2025
2026
2027
Beyond
Total
Maturity
653
162.5
1,037
293.7
1,183
60.1
1,076
105.0
2,906
148.1
-
-
7,171
72.9
1,635
81.3
1,263
81.7
16
35.0
70
133
164
77.9
-
-
143
48.9
-
-
1,184
1,205
47.9
227
93.0
509
35.2
-
-
4,099
92.1
226
94.9
58
73.9
16
35.0
-
-
52.0
48
82.0
388
17.4
-
-
229
56.6
50
94.0
-
-
16
35.0
-
-
139
47.2
-
-
23
21.0
-
-
294
17.8
-
-
-
-
-
-
-
-
132
45.8
-
-
20
8.3
-
-
249
15.8
-
-
-
-
-
-
-
-
1,564
1,037
3,680
1,351
5,066
-
11,499
1,911
1,321
333
29.0
-
-
65
7.2
-
-
720
15.6
-
-
-
-
-
-
-
-
16
35.0
-
-
16
35.0
-
-
117
33.0
-
-
197
70
-
Notes to the consolidated financial statements
413
The following table reports the notional amount and fair
value of instruments hedging commodity price risk on
transactions outstanding at December 31, 2023 and De-
cember 31, 2022, broken down by type of commodity.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
Derivatives
Cash flow hedges
Derivatives on power:
- swaps
- forwards/futures
- options
Total derivatives on power
Derivatives on coal/shipping:
- swaps
- forwards/futures
- options
Total derivatives on coal/shipping
Derivatives on gas and oil:
- swaps
- forwards/futures
- options
684
1,636
527
2,847
1,213
1,535
218
2,966
-
-
-
-
9
-
-
9
357
162
93
612
-
-
-
-
982
89
36
311
2,570
-
352
3,510
-
(233)
(763)
(62)
(498)
(898)
(12)
1,107
2,881
3,862
(1,058)
(1,408)
2
-
-
2
-
38
-
38
1,028
-
-
1,028
2,729
8,085
48
-
(17)
-
(17)
(373)
-
-
(373)
(468)
(765)
(1,198)
(5,182)
-
(4)
2,785
3,382
-
2,302
4,734
22
623
1,375
-
666
1,714
4
2,066
2,407
-
Total derivatives on gas and oil
6,167
7,058
1,998
2,384
4,473
10,862
(1,666)
(5,951)
Derivatives on CO2:
- swaps
- forwards/futures
- options
Total derivatives on CO2
-
640
-
640
-
1,704
-
1,704
-
91
-
91
-
143
-
143
TOTAL COMMODITY DERIVATIVES
9,654
11,737
2,701
3,636
-
379
-
379
7,771
-
207
-
207
-
(29)
-
(29)
-
(7)
-
(7)
15,959
(2,770)
(7,739)
The table reports the notional amount and fair value of
derivatives hedging commodity price risk at December
31, 2023 and December 31, 2022, 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 €1,998 million, derivatives on CO2
in the amount of € 91 million and derivatives on power for
€612 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 €1,666 million, derivatives on power in the
amount of €1,058 million and, to a lesser extent, deriva-
tives on coal and CO2 in the amount of respectively €17
million and €29 million.
414 Integrated Annual Report 2023
Cash flow hedge derivatives
The following table shows the cash flows expected in
coming years from cash flow hedge derivatives on com-
modity price risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2023
2024
2025
2026
2027
2028
Beyond
Cash flow hedge derivatives on commodities
Positive fair value
Negative fair value
2,701
1,861
(2,770)
(1,727)
428
(430)
153
(217)
85
(216)
55
(72)
246
(235)
The following table shows the impact of cash flow hedges
of commodity price risk in the statement of financial posi-
tion at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
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
995
-
4,850
4,206
38
5,789
1,019
528
-
17,425
124
-
155
(602)
(17)
178
62
31
-
(69)
126
-
155
1,564
1,037
5,031
485
(371)
(99)
(638)
5,045
(809)
(17)
92
62
31
-
-
-
12,820
(3,469)
1,911
136
218
70
24
-
469
(371)
(98)
(938)
-
(3,673)
138
24
-
(189)
27,696
(4,103)
(4,449)
The following table shows the impact of the hedged item
of cash flow hedges in the statement of financial position
at December 31, 2023 and December 31, 2022.
Millions of euro
at Dec. 31, 2023
at Dec. 31, 2022
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value of
the hedged
item used
to measure
ineffectiveness
in the year
Hedging
reserve
Hedging
costs
reserve
Hedging
reserve
Hedging
costs
reserve
Future transactions in power
Future transactions in coal/shipping
Future transactions in gas and oil
Future transactions in CO2
Total
491
17
(422)
(62)
24
(491)
(17)
422
62
(24)
12
-
-
-
12
(59)
-
(118)
-
(177)
602
371
(602)
(371)
3,360
(3,360)
(133)
133
15
-
-
-
4,200
(4,200)
15
(264)
Ineffective
portion of
carrying
amount
of CFH
derivatives
(32)
-
(232)
-
With regard to cash flow hedge derivatives on commodity
prices, 2023 was marked by a progressive reduction in the
extreme price volatility seen in past years.
The greatest impact in terms of changes in the cash flow
hedge reserve is mainly attributable to future transac-
tions in gas and power, which experience a reduction in
the magnitude of the amount to defer to future years be-
cause those commodities were the most affected by the
high price volatility.
Moreover, the change is also attributable to the usual re-
Notes to the consolidated financial statements
415
lease of the impact on profit or loss of amounts accrued in
2023, which were the most affected by major price swings
of the past years.
The ineffectiveness recognized in 2023 on future trans-
actions in gas is mainly related to proxy hedging opera-
tions in Spain, while ineffectiveness on future transactions
in power is mainly related to proxy hedging operations in
North America.
51.2 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, 2023 and
December 31, 2022.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
at Dec. 31,
2023
at Dec. 31,
2022
Derivatives at FVTPL
on interest rates:
- interest rate swaps
- interest rate options
on exchange rates:
- currency forwards
- 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
-
-
-
-
1,818
3,659
-
-
243
595
5,294
6,903
46
7
5,583
7,505
-
156
-
156
-
115
-
115
-
-
25
-
24
905
4
933
-
23
-
23
-
-
75
-
106
872
15
993
-
21
-
21
100
-
100
-
1,874
2,102
-
46
(29)
-
(29)
-
68
5,039
80
245
5,620
140
(16)
(906)
(171)
(23)
-
(34)
(1)
(180)
(908)
(172)
5,187
6,005
(1,093)
(1,260)
-
112
-
112
-
1,291
-
1,291
-
(43)
-
(43)
-
(9)
-
(9)
969
1,964
295
806
529
834
(167)
(550)
10,687
40,669
2,970
10,456
10,856
38,651
(2,963)
(10,280)
448
34
344
8
278
33
(232)
(22)
Total derivatives on gas and oil
12,104
42,667
3,609
11,270
11,663
39,518
(3,362)
(10,852)
Derivatives on CO2:
- swaps
- forwards/futures
- options
Total derivatives on CO2
Derivatives on other:
- swaps
- forwards/futures
- options
Total derivatives on other
TOTAL
-
498
12
510
-
16
-
16
-
725
2
727
-
13
-
13
-
41
14
55
-
4
-
4
-
115
2
117
-
72
-
72
-
426
11
437
39
171
5
215
-
361
-
361
-
5
-
5
-
(42)
(14)
(56)
(6)
(71)
-
(77)
-
(35)
-
(35)
-
(16)
-
(16)
20,187
54,686
4,649
12,548
19,588
49,428
(4,689)
(12,230)
416 Integrated Annual Report 2023
At December 31, 2023 the notional amount of trading de-
rivatives on interest rates came to €100 million. The nega-
tive fair value of €29 million deteriorated by €6 million on
the previous year mainly due to developments in the yield
curve.
At December 31, 2023 the notional amount of derivatives
on exchange rates was €3,692 million. After the strains ex-
perienced in raw material prices during 2022, which led to
a considerable increase in the notional amounts hedged,
the notional value of currency hedges on energy com-
modities returned to normal operating levels in 2023. This
produced an overall decrease in the value of the hedges of
€2,069 million. The deterioration of net fair value of €45
million reflected normal developments in exchange rates.
At December 31, 2023, the notional amount of deriva-
tives on commodities came to €35,983 million. In absolute
terms, the notional amounts decreased compared with
2022 in line with the gradual decline observed in the pric-
es of energy commodities. The fair value of trading deriv-
atives on commodities classified as assets mainly reflects
the market valuation of hedges of gas and oil amount-
ing to €3,609 million, derivatives on power amounting to
Fair value measurement
€933 million, derivatives on CO2 amounting to €55 million
and, to a lesser extent, derivatives on coal and other com-
modities totaling €23 million and €4 million, respectively.
The fair value of trading derivatives on commodities
classified as liabilities mainly regards hedges of gas and
oil amounting to €3,362 million, derivatives on power
amounting to €1,093 million, and derivatives on CO2, coal
and other commodities in the amount of €56 million, €43
million and €77 million, respectively.
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.
In addition to weather derivative hedges, the “other” cat-
egory includes hedges carried out on guarantees of or-
igin and green certificates, i.e. incentive mechanisms for
the production of electricity from renewable sources. In
addition to the commodity price risk, the Group compa-
nies have to manage the risk of fluctuations in the price of
these certificates which were recently affected by greater
market volatility compared with the past, due to the in-
creasing market attention to environmental sustainability
issues.
52. Assets and liabilities measured at fair value
The Group determines fair value in accordance with IFRS
13 whenever such measurement is required by the IFRS as
a recognition or measurement criterion.
Fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability, in an orderly
transaction, between market participants, at the measure-
ment 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 ba-
sis of quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access
at the measurement date;
• Level 2, where the fair value is determined on the ba-
sis of inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, ei-
ther directly (such as prices) or indirectly (derived from
prices);
• 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 liabili-
ties are those required or permitted by the IFRS in the
statement of financial position at the close of each pe-
riod;
• non-recurring fair value measurements are those re-
quired or permitted by the IFRS 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”.
Notes to the consolidated financial statements
417
52.1 Assets measured at fair value in the statement of financial position
The following table shows, for each class of assets mea-
sured 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.
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, 2023
at Dec. 31, 2023
28
295
Equity investments in other
companies at FVOCI
29
Securities at FVOCI
29.1, 30.1
Loan assets and other financial
assets at FVOCI
Equity investments in other
companies at FVTPL
Financial assets from service
concession arrangements at
FVTPL
Financial assets from JDA at FVTPL
Loan assets and other financial
assets at FVTPL
Other cash investments at FVTPL
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
Non-monetary grants in respect
of environmental certificates
Inventories measured at fair value
Contingent consideration
29
29
51
51
51
51
51
51
51
51
51
338
505
39
8
4,080
123
169
-
101
12
174
1,007
883
-
1
205
-
48
5
15
505
-
-
-
41
-
-
-
-
-
-
173
-
-
27
-
48
-
-
-
-
4,080
-
-
-
101
12
174
1,007
375
-
1
178
-
-
-
-
39
8
-
82
169
-
-
-
-
-
-
-
-
-
-
5
-
81
-
-
-
-
190
29
-
-
1
145
-
81
-
-
-
-
131
29
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
145
413
-
24
335
1,818
1,311
-
24
-
-
4,419
3,038
1,381
18
3
2
1
-
-
11
3
2
-
-
-
-
-
-
59
-
-
-
-
-
94
-
-
-
6
-
-
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 Dis-
tribuição Ceará and Enel Distribuição São Paulo, 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 “loans assets and other financial
assets at FVTPL” includes mainly under Level 1 financial
deposits held by Latin American companies.
In addition, “loan assets and other financial assets at FVT-
PL” include the non-current portion (€130 million) and the
current portion (€59 million) of “super-eco-sisma bonus”
receivables purchased after the enactment of the Revival
Decree and assigned to banks, the measurement of which
falls within Level 3.
The current portion of “other cash investments at FVTPL”
at Level 1 mainly refers to investment in money-market
funds to manage the liquidity of Enel Insurance.
Level 3 of the non-current portion of “loan assets and oth-
er financial assets at FVTPL” reports the receivable in re-
spect of the sale of Slovak Power Holding, which amount-
ed to €39 million at December 31, 2023. Its fair value was
determined using the contractual price formula.
The fair value of derivative contracts is determined us-
ing the official prices for instruments traded on regulated
markets. The fair value of instruments not listed on a reg-
ulated market is determined using valuation methods ap-
propriate for each type of financial instrument and market
418 Integrated Annual Report 2023
data as of the end of the reporting period (such as interest
rates, exchange rates, volatility), discounting expected fu-
ture cash flows on the basis of the market yield curve and
translating amounts in currencies other than the euro us-
ing exchange rates provided 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 de-
termination is based on market inputs as these contracts
are entered into with exchange counterparties, leading
sector operators or financial institutions.
Certain long-term financial contracts in Spain (Virtual
Power Purchase Agreements, or VPPAs), for which inter-
nal measurement models were also used in part in order
to measure these instruments over longer time horizons,
given the illiquidity of the underlying variables fall within
Level 3.
In accordance with the IFRS, 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 corresponding amount of counterparty risk where
necessary. More specifically, the Group measures CVA/
DVA using a Potential Future Exposure valuation technique
for the net exposure of the position and subsequently al-
locating the adjustment to the individual financial instru-
ments that make up the overall portfolio. All of the inputs
used in this technique are observable on the market.
52.2 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, 2023
at Dec. 31, 2023
Investment property
Inventories
22
33
98
-
7
-
-
-
91
-
-
45
-
-
-
-
-
45
The table reports the fair value of investment property and
inventories of real estate not used in the business in the
amount of €98 million and €45 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.
52.3 Liabilities measured at fair value in the statement of financial position
The following table reports for each class of liabilities mea-
sured 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
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, 2023
at Dec. 31, 2023
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
Contingent consideration
51
51
51
51
51
51
51
51
27
78
91
1,830
1,143
-
1
203
41
-
-
-
-
27
78
91
1,830
-
-
-
-
17
-
-
332
-
-
-
-
43
922
178
1,627
1,030
-
-
102
-
-
1
100
-
-
-
1
41
29
28
-
-
4,428
3,154
1,268
26
-
26
17
-
-
332
555
29
28
-
-
-
-
42
-
-
6
-
Notes to the consolidated financial statements
419
Contingent consideration mainly regards a number of
equity investments held by the Group in North America,
whose fair value was determined on the basis of the con-
tractual terms and conditions.
52.4 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
Fair value
Level 1
Level 2
Level 3
at Dec. 31, 2023
45,727
3,097
3,746
12,933
3,278
59
43,287
66
-
-
-
-
2,440
3,031
3,746
12,933
3,278
59
68,840
43,353
25,487
-
-
-
-
-
-
-
For listed debt instruments, the fair value is given by of-
ficial prices. For unlisted instruments the fair value is de-
termined 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
53. 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 incen-
tive plans approved (the 2019 Long-Term Incentive Plan,
the 2020 Long-Term Incentive Plan, the 2021 Long-Term
Incentive Plan, the 2022 Long-Term Incentive Plan, the
2023 Long-Term Incentive Plan, referred to hereinafter,
respectively, the “2019 LTI Plan”, “2020 LTI Plan”, the “2021
LTI Plan”, the “2022 LTI Plan”, the “2023 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 targets.
Plan beneficiaries are the Chief Executive Officer/General
Manager of Enel and Enel Group managers in the posi-
tions 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 by 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
Manager or the other beneficiaries.
The Plans establish that, of the total incentive effectively
vested, the bonus will be fully paid in Shares: (a) for the
LTI 2019, 2020, 2021, 2022 and 2023 Plans (i) up to 100%
of the base value for the Chief Executive Officer/General
Manager (up to 130% for the 2022 LTI Plan), and (ii) up to
50% of the base value for the other beneficiaries (up to
65% for the 2022 LTI Plan); (b) for the LTI 2023 Plan (i) up
to 150% of the base value for the Chief Executive Officer/
General Manager, (ii) up to 100% of the base value for offi-
cers reporting directly to the Chief Executive Officer/Gen-
420 Integrated Annual Report 2023
eral Manager, including key management personnel, and
(iii) up to 65% of the base value for the other beneficiaries,
other than those indicated under (i) and (ii) above.
The actual award of the bonus under the Plans is sub-
ject to the achievement of specific performance targets
during the three-year performance period. If these targets
are achieved, 30% of both the stock and cash compo-
nents 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
performance 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, the 2021 LTI Plan, the 2022 LTI Plan,
and the 2023 LTI Plan.
For more information on the characteristics of the Plans,
please see the information documents prepared pursuant
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 Share-
holders’ Meetings held respectively on May 16, 2019, May
14, 2020, May 20, 2021, May 19, 2022 and May 10, 2023.
2019 LTI Plan
2020 LTI Plan
2021 LTI Plan
2022 LTI Plan
2023 LTI Plan
Grant date
Performance period
Verification of
achievement of targets
12.11.2019(55)
17.09.2020(58)
16.09.2021(61)
21.09.2022(63)
05.10.2023(65)
2019-2021
2020-2022
2021-2023
2022-2024
2023-2025
2022(56)
2023(59)
2024(62)
2025(64)
2026(66)
Payout
2022-2023(57)
2023-2024(60)
2024-2025
2025-2026
2026-2027
In implementation of the authorizations granted by the
Shareholders’ Meetings held on the dates indicated above
and in compliance with the associated terms and condi-
tions, the Board of Directors approved – at its meetings of
September 19, 2019, July 29, 2020, June 17, 2021, June 16,
2022 and October 5, 2023 – the launch of share buyback
programs to serve the 2019 LTI Plan, the 2020 LTI Plan, the
2021 LTI Plan, the 2022 LTI Plan, and the 2023 LTI Plan re-
spectively. The number of Shares whose purchase was au-
thorized 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.
(55) 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).
(56) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2021, the Board of Directors verified the level
of achievement of the performance targets of the 2019 LTI Plan.
(57) On September 5, 2022 the Company awarded part of the equity component of the bonus vested by the beneficiaries of the 2019 LTI Plan, in accordance with
the Plan rules. The remainder of the equity component of the bonus vested by the beneficiaries of the 2019 LTI Plan was awarded on September 5, 2023.
(58) 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).
(59) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2022, the Board of Directors verified the level
of achievement of the performance targets of the 2020 LTI Plan.
(60) On September 5, 2023 the Company awarded part of the equity component of the bonus vested by the beneficiaries of the 2020 LTI Plan, in accordance
with the Plan rules.
(61) 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).
(62) 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.
(63) The date on which the Board of Directors approved the procedures and timing for granting the 2022 LTI Plan to the beneficiaries (taking account of the
proposal issued by the Nomination and Compensation Committee at its meeting of June 8, 2022).
(64) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2024, the Board of Directors will verify the level
of achievement of the performance targets of the 2022 LTI Plan.
(65) The date on which the Board of Directors approved the procedures and timing for granting the 2023 LTI Plan to the beneficiaries (taking account of the
proposal issued by the Nomination and Compensation Committee at its meeting of October 4, 2023).
(66) On the occasion of the approval of the consolidated financial statements of the Enel Group at December 31, 2025, the Board of Directors will verify the level
of achievement of the performance targets of the 2023 LTI Plan.
Notes to the consolidated financial statements
421
Purchases authorized by the
Board of Directors
Actual purchases
Number of Shares
Number of
Shares
Weighted average price
(euros per Share)
Total value (euros)
No more than 2,500,000 for a
maximum amount of €10,500,000
million
1,549,152(67)
6.7779
10,499,999
1,720,000
1,720,000(68)
1,620,000
1,620,000(69)
2,700,000
2,700,000(70)
7.4366
7.8737
5.1951
12,790,870
12,755,459
14,026,715
4,200,000
3,377,224(71)
6.2205(72)
21,007,908(73)
2019 LTI Plan
2020 LTI Plan
2021 LTI Plan
2022 LTI Plan
2023 LTI Plan
As a result of the purchases made to support the 2019 LTI
Plan, the 2020 LTI Plan, the 2021 LTI Plan, the 2022 LTI Plan,
and the 2023 LTI Plan, and taking into account the award
on September 5, 2022 of 435,357 Shares to the bene-
ficiaries of the 2019 LTI Plan and on September 5, 2023
of 1,268,689 Shares to the beneficiaries of the 2019 LTI
Plan and 2020 LTI Plan, at December 31, 2023 Enel holds
a total of 9,262,330 treasury shares, equal to about 0.09%
of share capital. The share buyback program to serve the
2023 LTI Plan was completed with the purchases made
on January 18, 2024. Taking account of the total number
of Shares purchased to serve the 2023 LTI Plan, at the
publication date of this document Enel holds a total of
10,085,106 treasury shares, equal to about 0.1% of share
capital.
The following information concerns the equity instru-
ments granted in 2019, 2020, 2021, 2022 and 2023.
2023
2022
Number of
Shares granted
at the grant
date
1,538,547
1,638,775
1,577,773
2,398,143
4,040,820
Fair value per
Share at the
grant date
Number of Shares
potentially available
for award
Number of
Shares awarded
Number of
Shares potentially
available for award
6.983
7.380
7.0010
4.8495
5.5540
0
956,562(74)
728,265
312,127(76)
1,375,671
2,023,677
4,040,820
-
-
-
1,021,328
1,631,951
1,577,773
2,395,323
Number of Shares
awarded
435,357(75)
-
-
-
-
2019 LTI Plan
2020 LTI Plan
2021 LTI Plan
2022 LTI Plan
2023 LTI Plan
(67) Shares purchased in the period between September 23 and December 2, 2019, equal to about 0.015% of share capital.
(68) Shares purchased in the period between September 3 and October 28, 2020, equal to about 0.017% of share capital.
(69) Shares purchased in the period between June 18 and July 21, 2021, equal to about 0.016% of share capital.
(70) Shares purchased in the period between June 17 and July 20, 2022, equal to about 0.026% of share capital.
(71) Number of Shares purchased to serve the 2023 LTI Plan at December 31, 2023. The share buyback programs to serve the 2023 LTI Plan, launched on Oc-
tober 16, 2023, was completed with the purchases made on January 18, 2024. The program involved the purchase of a total of 4,200,000 Shares, equal to
about 0.04% of share capital, at the weighted average price of €6.3145 per share and with a total value of €26,520,849.002.
(72) Weighted average price of the Shares purchased to serve the 2023 LTI Plan at December 31, 2023.
(73) Total value of the Shares purchased to serve the 2023 LTI Plan at December 31, 2023.
(74) The table shows the number of Shares awarded on September 5, 2023, to the beneficiaries of the 2019 LTI Plan, which make up the remaining portion of
the equity component of the bonus vested by the beneficiaries following the achievement of the performance objectives of the Plan.
(75) The table shows the number of Shares awarded on September 5, 2022, to the beneficiaries of the 2019 LTI Plan, which make up part of the equity com-
ponent of the bonus vested by the beneficiaries following the achievement of the performance objectives of the Plan. The remaining portion of the equity
component of the bonus, in accordance with the terms and procedures of the rules of the 2019 LTI Plan, was paid on September 5, 2023.
(76) The table shows the number of Shares awarded on September 5, 2023, to the beneficiaries of the 2020 LTI Plan, which make up part of the equity compo-
nent of the bonus vested by the beneficiaries following the achievement of the performance objectives of the Plan. Disbursement of the remaining portion
of the equity component of the bonus is deferred to 2024, in accordance with the terms and procedures of the rules of the 2020 LTI Plan.
422 Integrated Annual Report 2023
The fair value of those equity instruments is measured on
the basis of the market price of Enel Shares at the grant
date.(77)
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 €6 million in 2023 (€11 million in 2022).
There have been no terminations or amendments involv-
ing the 2019 LTI Plan, the 2020 LTI Plan, the 2021 LTI Plan,
the 2022 LTI Plan, or the 2023 LTI Plan.
54. 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
Single Buyer
Relationship
Nature of main transactions
Fully controlled (indirectly) by the Ministry
for the Economy and Finance
Purchase of electricity for the enhanced protection market
Cassa Depositi e Prestiti Group
Directly controlled by the Ministry for the
Economy and Finance
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 associated companies 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 relat-
ed parties, associated companies and joint ventures out-
standing at December 31, 2023 and December 31, 2022
and carried out during the period.
(77) 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.
For the 2022 LTI Plan, the grant date is September 21, 2022, i.e. the date of the meeting of the Board of Directors that approved the procedures and timing
of the grant under the 2022 LTI Plan to the beneficiaries.
For the 2023 LTI Plan, the grant date is October 5, 2023, i.e. the date of the meeting of the Board of Directors that approved the procedures and timing of
the grant under the 2023 LTI Plan to the beneficiaries.
Notes to the consolidated financial statements
423
Millions of euro
Income statement
Revenue from sales and services
Other income
Other financial income
Single Buyer
-
-
-
Electricity, gas and fuel purchases
2,035
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
-
11
-
1
EMO
3,172
-
-
7,098
63
201
-
-
Cassa Depositi e
Prestiti Group(1)
ESO
14
-
-
11
2
355
-
-
3,626
10
2
2,304
2,751
51
-
29
Other
224
3
-
2
72
2
-
-
(1)
Includes balances mainly referring to: Terna, Cassa Depositi e Prestiti SpA, Eni, Snam, Poste Italiane, Ansaldo Energia and Italgas.
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total at Dec. 31, 2023
ventures
Associates and joint
Overall total at Dec. 31,
Total in financial
statements
% of total
1
-
-
59
1
3
-
7
-
-
-
8
-
22
34
60
36
-
Millions of euro
Statement of financial position
Other non-current financial assets
Non-current financial derivative assets
Other non-current assets
Trade receivables
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
84
-
-
-
-
-
-
-
-
-
-
7
-
17
-
-
-
-
-
-
-
6
940
5
23
357
11
-
-
89
Trade payables
497
201
378
1,616
Current financial derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
3
10
136
23
(1)
Includes balances mainly referring to: Terna, Cassa Depositi e Prestiti SpA, Eni, Snam, Poste Italiane, Ansaldo Energia and Italgas.
424 Integrated Annual Report 2023
Total 2023
ventures
Overall total 2023
% of total
Total in financial
statements
Associates and joint
7,036
13
2
11,450
2,888
620
-
30
1,090
1
-
6
6
43
357
18
-
-
89
-
53
37
70
172
23
2,700
224
5
237
128
463
-
(7)
59
1,929
4
-
176
168
49
302
22
129
15
-
8
3
-
3
-
-
-
7,260
18
239
11,578
3,351
620
(7)
89
2023
1,930
4
6
1,266
174
92
659
18
8
3
111
2,829
15
53
40
70
172
23
92,882
2,683
2,916
46,270
18,304
6,125
(2,966)
5,966
8,750
2,383
2,249
17,773
4,329
4,099
61,085
5,743
3,373
4,769
9,086
15,821
6,461
2,126
14,760
7.8%
0.7%
8.2%
25.0%
18.3%
10.1%
0.2%
1.5%
22.1%
0.2%
0.3%
7.1%
4.0%
2.2%
1.1%
0.3%
0.2%
0.1%
1.2%
17.9%
0.2%
2.5%
0.3%
Electricity, gas and fuel purchases
2,035
3,626
224
Millions of euro
Income statement
Revenue from sales and services
Other income
Other financial income
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
Millions of euro
Statement of financial position
Other non-current financial assets
Non-current financial derivative assets
Other non-current assets
Trade receivables
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
Current financial derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
EMO
3,172
7,098
63
201
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
84
-
-
-
-
-
1
11
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
-
-
11
2
-
-
355
17
-
-
-
7
-
-
-
-
-
-
-
-
-
-
-
-
2,304
2,751
10
2
51
-
29
-
-
6
940
5
23
357
11
-
-
89
-
31
3
10
136
23
72
3
-
2
2
-
-
59
1
-
-
1
3
-
7
-
-
-
8
-
22
34
60
36
-
Trade payables
497
201
378
1,616
Single Buyer
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total 2023
Associates and joint
ventures
Overall total 2023
Total in financial
statements
% of total
7,036
13
2
11,450
2,888
620
-
30
224
5
237
128
463
-
(7)
59
7,260
18
239
11,578
3,351
620
(7)
89
92,882
2,683
2,916
46,270
18,304
6,125
(2,966)
5,966
7.8%
0.7%
8.2%
25.0%
18.3%
10.1%
0.2%
1.5%
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total at Dec. 31, 2023
Associates and joint
ventures
Overall total at Dec. 31,
2023
Total in financial
statements
% of total
1
-
6
1,090
6
43
357
18
-
-
89
2,700
-
53
37
70
172
23
1,929
4
-
176
168
49
302
-
8
3
22
129
15
-
3
-
-
-
1,930
4
6
1,266
174
92
659
18
8
3
111
2,829
15
53
40
70
172
23
8,750
2,383
2,249
17,773
4,329
4,099
61,085
5,743
3,373
4,769
9,086
15,821
6,461
2,126
14,760
22.1%
0.2%
0.3%
7.1%
4.0%
2.2%
1.1%
0.3%
0.2%
0.1%
1.2%
17.9%
0.2%
2.5%
0.3%
Notes to the consolidated financial statements
425
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total 2022
ventures
Overall total 2022
% of total
Total in financial
statements
Associates and joint
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total at Dec. 31, 2022
ventures
Associates and joint
Overall total at Dec. 31,
Total in financial
statements
% of total
(1)
Includes balances mainly referring to: Terna, Cassa Depositi e Prestiti SpA, Eni, Snam, Poste Italiane, Ansaldo Energia and Italgas.
Millions of euro
Income statement
Revenue from sales and services
Other income
Other financial income
-
-
-
7,949
-
-
Electricity, gas and fuel purchases
6,379
16,817
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
-
10
-
1
220
147
-
-
Millions of euro
Statement of financial position
Other non-current financial 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
-
-
-
-
-
-
-
-
-
-
-
220
-
-
-
-
-
-
-
-
Trade payables
1,211
305
Other current financial liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
-
-
-
-
-
-
-
-
-
20
-
-
87
-
-
2
2
-
-
2
4,497
389
-
4,266
3,258
420
50
10
196
-
-
3
73
3
-
-
-
6
-
-
30
-
-
-
-
-
6
-
-
-
-
-
-
-
1,040
-
5
58
447
9
-
-
89
1,097
-
23
3
11
134
149
-
38
-
-
2
-
8
-
-
-
(1)
-
20
23
58
36
-
(1)
Includes balances mainly referring to: Terna, Cassa Depositi e Prestiti SpA, Eni, Snam, Poste Italiane, Ansaldo Energia and Italgas.
426 Integrated Annual Report 2023
12,729
389
-
27,467
3,553
580
50
13
1,304
-
-
5
90
447
17
-
-
89
-
43
26
89
170
149
2,618
210
-
154
413
247
1
-
21
1,885
259
5
99
63
327
-
9
14
21
192
21
1
-
-
-
-
12,939
389
154
27,880
3,800
581
50
34
2022
1,885
1,563
110
2,810
5
104
153
774
17
9
14
1
43
47
89
170
149
135,653
4,864
3,430
96,896
20,228
4,685
2,365
5,880
8,359
16,605
14,830
13,753
4,314
68,191
5,747
5,895
18,392
2,835
17,641
853
1,775
11,713
9.5%
8.0%
4.5%
28.8%
18.8%
12.4%
2.1%
0.6%
22.6%
9.4%
-
0.8%
3.5%
1.1%
0.3%
0.2%
0.1%
3.9%
15.9%
0.1%
2.4%
0.4%
Electricity, gas and fuel purchases
6,379
Millions of euro
Income statement
Revenue from sales and services
Other income
Other financial income
Costs for services and other materials
Other operating costs
Net results from commodity contracts
Other financial expense
Millions of euro
Statement of financial position
Other non-current financial 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
Other current financial liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
-
-
-
-
-
1
10
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,949
16,817
220
147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
87
-
-
2
2
-
-
2
30
-
6
-
-
6
-
-
-
-
-
-
-
-
-
-
-
4,497
389
-
4,266
3,258
420
50
10
-
-
5
9
-
-
58
447
89
1,097
-
23
3
11
134
149
196
73
-
-
3
3
-
-
-
-
-
2
-
8
-
-
-
(1)
-
20
23
58
36
-
220
1,040
38
Trade payables
1,211
305
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total 2022
Associates and joint
ventures
Overall total 2022
Total in financial
statements
% of total
12,729
389
-
27,467
3,553
580
50
13
210
-
154
413
247
1
-
21
12,939
389
154
27,880
3,800
581
50
34
135,653
4,864
3,430
96,896
20,228
4,685
2,365
5,880
9.5%
8.0%
4.5%
28.8%
18.8%
12.4%
2.1%
0.6%
Single Buyer
EMO
Cassa Depositi e
Prestiti Group(1)
ESO
Other
Total at Dec. 31, 2022
Associates and joint
ventures
Overall total at Dec. 31,
2022
Total in financial
statements
% of total
-
1,304
-
5
90
447
17
-
-
89
2,618
-
43
26
89
170
149
1,885
259
5
99
63
327
-
9
14
21
192
1
-
21
-
-
-
1,885
1,563
5
104
153
774
17
9
14
110
2,810
1
43
47
89
170
149
8,359
16,605
14,830
13,753
4,314
68,191
5,747
5,895
18,392
2,835
17,641
853
1,775
11,713
22.6%
9.4%
-
0.8%
3.5%
1.1%
0.3%
0.2%
0.1%
3.9%
15.9%
0.1%
2.4%
0.4%
Notes to the consolidated financial statements
427
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
Termination benefits
Share-based payments
Total
Millions of euro
Remuneration of key management personnel
Short-term employee benefits
Termination benefits
Share-based payments
Total
2023
2022
Change
5
5
1
11
5
-
1
6
-
5
-
5
-
-
-
83.3%
2023
2022
Change
8
4
1
13
13
-
2
15
(5)
4
(1)
(2)
-38.5%
-
-50.0%
-13.3%
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 (Enel Procedure for Trans-
actions with Related Parties). The procedure (available at
https://www.enel.com/investors/bylaws-rules-and-pol-
icies/transactions-with-related-parties/) sets out rules
designed to ensure the transparency and procedural and
substantive propriety of transactions with related parties.
It was adopted in implementation of the provisions of Arti-
cle 2391-bis of the Italian Civil Code and the implementing
regulations issued by CONSOB with Resolution no. 17221
of March 12, 2010, as amended (“CONSOB Regulation”).
No related-party transactions requiring disclosure in the
financial statements pursuant to the CONSOB Regulation
were carried out in 2023.
428 Integrated Annual Report 2023
55. 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 sub-
sidiaries to companies, individuals and public and private
entities. The disclosure comprises: (i) grants received from
Italian public entities/State entities; and (ii) donations
made by Enel SpA and Group subsidiaries to public or pri-
vate parties resident or established in Italy.
The following disclosure includes payments in excess of
€10,000 made by the same grantor/donor during 2023,
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
Regione Sicilia
MIUR
MIMIT
MASE
MASE
Beneficiary
Amount
Notes
Enel X Mobility Srl (Enel
X Way Italia Srl as from
July 1, 2023)
Enel X Srl
Enel Produzione SpA
(1.03)
(0.38)
(0.04)
e-distribuzione SpA
(347.79)
e-distribuzione SpA
(15.68)
Instalment of grant for the Sicilia Smart Charging project, financed
under the PNIRE Regione Sicilia
Instalment of grant for the SE4I project application, financed under
the PON MIUR R&SSI PNR 2015-2020
Balance of grant for the Hydrostore project financed under the
2015 Bando Industria
10% advance payment of the SmartGrid and Resilience projects of
the NRRP
Progress payment for PON IC 2014/2020 FESR, ASSE IV, AZIONE
4,3,1, of the projects: Agrigento, Pachino, Priolo, Campagna,
Ciminna, Valguarnera, Santa Croce Camerina, Mussomeli, Scordia,
Ragusa 3
European Commission
e-distribuzione SpA
European Commission
e-distribuzione SpA
(0.10)
(0.02)
Progress payment for R&D project Life Lanario (LIFE funding
program)
Progress payment for R&D project Flexplan (H2020 funding
program)
MASE
e-distribuzione SpA
(10.69)
Progress payment for R&D project Puglia Active Network (NER 300
funding program)
(375.73)
Total
Notes to the consolidated financial statements
429
Grants made in millions of euro
Beneficiary
Amount
Notes
Grantor
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel X Srl
Enel Green Power Italia
Enel Green Power Italia
Enel Produzione SpA
Enel Produzione SpA
Fondazione Centro
Studi Enel
Enel Cuore Onlus
Luiss Guido Carli
Human Foundation
FGS Onlus
Enel Cuore Onlus
Lega Navale Italiana
Sezione Belluno
Lega Navale Italiana
Sezione Belluno
Fondazione Vajont 9
Ottobre 1963 Onlus
Fondazione Centro
Studi Enel
Enel Produzione SpA
Enel Cuore Onlus
Enel Produzione SpA
Enel Cuore Onlus
Enel Produzione SpA
Comune di
Civitavecchia
Enel Produzione SpA
Enel Energia SpA
Capitaneria di Porto
Empedocle
Fondazione Centro
Studi Enel
Enel Energia SpA
Enel Cuore Onlus
Enel Energia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Enel Italia SpA
Fondazione Centro
Studi Enel
Enel Cuore Onlus
Capone Valentina
Fondazione Nazionale
Accademia Santa
Cecilia
Teatro alla Scala di
Milano
Enel Italia SpA
Fondazione MAXXI
Enel Italia SpA
Fondazione Centro
Studi Enel
Enel Italia SpA
Croce Rossa Italiana
Enel Global Trading SpA
Fondazione Centro
Studi Enel
e-distribuzione SpA
Enel Cuore Onlus
e-distribuzione SpA
Enel Cuore Onlus
e-distribuzione SpA
e-distribuzione SpA
e-distribuzione SpA
Fondazione Centro
Studi Enel
Fondazione Centro
Studi Enel
Dipartimento della
Protezione Civile
Presidenza del
Consiglio dei Ministri
430 Integrated Annual Report 2023
0.10
0.59
0.07
0.05
0.03
0.04
0.04
0.02
0.05
0.41
0.15
0.70
0.08
0.03
0.90
0.33
0.89
0.07
0.01
0.60
0.60
0.60
0.05
0.26
1.02
1.89
0.33
1.28
0.88
0.67
Donation
Donation in support of projects identified in 2023
Donation for the development and transmission of scientific,
technological and humanistic knowledge
Donation to generate and develop innovative solutions to social
problems
Donation to promote equal opportunities
2023 contribution
Donation for the “Vela per Tutti” project
Donation for the “Vela per Tutti” project
Donation Vajont Foundation
1st Instalment 2023 grant
1st Instalment 2023 grant
Balance 2022 grant
Sustainability Plan City of Civitavecchia
Design, construction and installation of removable metal structure
to shade area of Port Authority of Porto Empedocle for parking of
associated military vehicles
50% advance on 2023 contribution
20% advance on 2023 contribution
Balance 2022 contribution
Balance 2022 extraordinary contribution
Modal donation “Alleva la Speranza” project
Donation to support the Foundation cultural activities
Donation to the Teatro alla Scala to support the cultural activities of
the Foundation
Donation to support the Foundation cultural activities
2022 contribution to support research and higher education
projects
Donation of medical-health equipment/materials purchased for
COVID vaccination centers in Enel locations
Contribution aimed at supporting and developing research and
higher education projects
80% balance of 2022 grant
20% balance of 2023 grant
50% balance of 2022 grant
50% balance of 2023 grant
Free transfer of company assets to be transported and delivered
to the Ukrainian authorities as part of the initiative to support
the energy sector in Ukraine promoted by Energy Community in
collaboration with the European Union Civil Protection Mechanism
(UCPM)
12.74
Total
56. 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, 2023
at Dec. 31, 2022
Change
- sureties and other guarantees granted to third parties
3,407
4,296
(889)
Commitments to suppliers for:
- electricity purchases
- fuel purchases
- various supplies
- tenders
- other
Total
TOTAL
63,422
47,666
3,017
6,982
6,483
127,570
130,977
64,878
96,996
2,449
6,165
6,889
177,377
181,673
(1,456)
(49,330)
568
817
(406)
(49,807)
(50,696)
Compared with December 31, 2022, the decrease of
€1,456 million in commitments for “electricity purchases”
is essentially attributable to companies in Latin America, in
particular in Chile, and developments in electricity prices.
The decrease of €49,330 million in commitments for “fuel
purchases” mainly regards the decrease in gas prices, es-
pecially in Italy and Spain, compared to 2022.
For more details on the expiry of commitments and guar-
antees, please see the section “Commitments to purchase
commodities” in note 49.
57. Contingent assets and liabilities
The following reports the main contingent assets and lia-
bilities at December 31, 2023, which are not recognized in
the consolidated financial statements as they do not meet
the requirements provided for in IAS 37.
Hydroelectric concessions – Italy
Italian regulations governing large-scale hydroelectric con-
cessions were most recently modified by the “Simplifica-
tions Decree” (Decree Law 135 of 2018 ratified with Law 12
of February 11, 2019), which introduced a series of inno-
vations regarding the granting of such concessions upon
their expiry and the valorization of the assets and works
connected to them to be transferred to the new conces-
sion 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 ob-
ligation to provide free power to public bodies (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, as
of today various regions (Lombardy, Piedmont, Emilia-Ro-
magna, Friuli-Venezia Giulia, the Province of Trento, Veneto,
Calabria, Basilicata, Abruzzo and Umbria) have enacted re-
gional laws implementing state legislation, and requested
payment of the dual-component fee and the monetization
of free electricity supplies.
Enel Produzione SpA and Enel Green Power SpA challenged
before the Superior Public Water Resources Court imple-
menting acts issued under the individual regional laws and
the subsequent payment notices of fees and the monetiza-
tion of free electricity supplies, asking that they be declared
void and raising the question of constitutional illegitimacy
of both the national law and the regional laws.
The companies initiated the proceedings by complaining
that the regional implementing acts – as well as the region-
al legislation which they implement – were constitutionally
illegitimate, first for violation of national legislation and var-
ious primary principles protected both by the Italian Con-
stitution and European law concerning legitimate expecta-
tions, property rights, reasonableness, private initiative, and
concessions, where:
• they provide for retroactive application to valid large di-
version concessions of the dual-component fee and the
obligation to supply free power or its financial equivalent;
• they order the monetization of the obligation to supply
free energy, which is not envisaged in the national law.
Furthermore, the introduction by the regions of these new
obligations to pay the new dual-component fee (divided
Notes to the consolidated financial statements
431
into a fixed component and a variable component) and to
supply a certain annual quantity of electricity free of charge
in the form of payment of the associated monetary value,
which is also to be paid by the holders of valid concessions
that have not yet expired, creates an unexpected and un-
reasonable financial imbalance in the concession relation-
ships. This circumstance is in evident contrast with the
principles of reasonableness, proportionality and legitimate
expectation of concession fees, compliance with which is
required by constitutional case law if, in the context of long-
term relationships, pejorative modifications are introduced.
Both the national law and the regional implementing legis-
lation violate Community principles and constitutional prin-
ciples such as property rights, the principle of legal certain-
ty, and the freedom of enterprise. In particular, 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 pending cases against the regions of Lombardy and
Piedmont have been adjourned to the collegial hearings of
April 24, 2024 and June 12, 2024, while the remaining pro-
ceedings are still pending in the preliminary investigation
phase.
Antitrust proceeding 12461 - EE - Contract
renewals – Italy
On December 13, 2022, the Competition Authority noti-
fied Enel Energia SpA (“the Company” or “EE”) and six other
companies (Hera, A2A, Acea, Eni Plenitude, Engie, Edison)
that it had initiated a proceeding for unfair commercial
practices (violation of certain provisions of the Consumer
Code and Article 3 of Legislative Decree 115/2022, the sec-
ond “Aid Decree”).
In particular, the Competition Authority, among other thing,
argued that EE had sent its customers, in the period from
May to October 2022, notices of price changes that were
allegedly generic and omissive to the extent that they did
not specify the expiry date of the financial conditions sub-
ject to renewal and represented an unwarranted exercise
of ius variandi in modification of the financial conditions of
the supply relationship, in violation of the aforementioned
Article 3 of the second Aid Decree.
With the measure initiating the procedure, the Competition
Authority simultaneously prohibited on a precautionary ba-
sis the sending of new price change notices and ordered
the correction of those already sent.
All the operators subject to the order, including EE, chal-
lenged the provision, which was based on the assumption
that any price change had been prohibited to suppliers in
the period indicated by the second Aid Decree (August 10
- April 30, then extended until June 30, 2023 by Legislative
Decree 198/2022, the “Milleproroghe Decree”).
Following the pronouncement of the Council of State of
December 22, 2022 and the Milleproroghe Decree of De-
cember 29, 2022, which excluded the applicability of Arti-
cle 3 of the Decree to contract renewals (of expiring offers)
in compliance with the contractual terms of notice and
without prejudice to the right of withdrawal of the coun-
terparty, thus distinguishing them from those covered by
the ius variandi, the Competition Authority, with a new pre-
cautionary measure on December 29, 2022, ordered the
partial upholding of the original precautionary measure and
confirmed the prohibition on changes or renewals of the fi-
nancial conditions of expiring contracts for which the expiry
date was not specifically identified or in any case predeter-
minable in the associated notice sent to the customer. EE
filed an appeal for additional reasons against this measure.
With a ruling published on May 19, 2023, the Lazio Region-
al Administrative Court accepted the arguments of EE and
voided the two precautionary measures of the Competition
Authority on December 12, 2022 and December 29, 2022,
disagreeing with the logical process established by the
Competition Authority as a basis for the provisions, which
were deemed to lack grounds for success. In particular,
according to the Court, the legislator intended to suspend
only the changes to the rules portion of the agreement and
not also the updating of expired or expiring prices, as this
would fix the previous pricing conditions indefinitely. Both
AGCM and EE appealed the Court ruling before the Council
of State and the proceeding is pending.
In the meantime, on November 15, 2023, the Competition
Authority, acting in the proceeding for unfair commercial
practices, issued a ruling finding a violation of Articles 24
and 25 of the Consumer Code, levying a fine of €10 million
on EE, which was paid by EE on December 15, 2023. On Jan-
uary 15, 2024, EE appealed to void the fine before the Lazio
Regional Administrative Court.
In an order issued following the hearing held on March
20, 2024, the Lazio Regional Administrative Court granted
a petition presented jointly by the parties to address the
grounds for appeal at the hearing on the merits scheduled
for July 17, 2024.
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 employee of a
contractor was injured and subsequently died.
During the investigative phase, an unrepeatable technical
assessment was ordered and the report of the Technical
Consultant of the Public Prosecutor, dated December 15,
2021, was filed and incorporated in the Public Prosecutor’s
case.
432 Integrated Annual Report 2023
A notice of dismissal of charges was subsequently sent
to some of the defendants and the subcontractor with
whom the deceased worker was employed. A notice of
conclusion of the preliminary investigation pursuant to Ar-
ticle 415-bis of the Code of Criminal Procedure was sent
to the remaining defendants and the company and, on
April 17, 2023, a notice was served to set the preliminary
hearing before the Preliminary Hearing Judge of the Court
of Taranto for May 23, 2023. Following adjournments, the
preliminary hearing was scheduled to continue on Febru-
ary 20, 2024, when the parties were heard, including the
request for a plea deal from one of the defendants. The
Court then rescheduled the hearing to May 21, 2024 for
the decision to send the case to trial.
In agreement with the insurance company, a process was
defined to reach a settlement with the heirs of the de-
ceased to extinguish the claims formulated by the injured
parties without admission of liability.
Arbitration proceedings Enel Produzione SpA
– Italy
In the 4th Quarter of 2023 a coal supplier initiated an ar-
bitration proceeding against Enel Produzione requesting
the fulfillment by the latter of certain coal supply contracts
stipulated between the parties during 2021, performance
of which was suspended by Enel Produzione in March
2022 due to the sanctions imposed with EU Regulations
no. 269/2014 and no. 833/2014. A claim of about $11 mil-
lion was filed for supplies already executed and about $62
million for expected supplier, plus interest. The arbitration
proceedings are pending and are currently expected to be
completed in 2025.
Green Network litigation – Italy
With a summons dated May 8, 2019, Green Network SpA
(GN) sued Enel Energia SpA (EE) before the Court of Rome
to ascertain alleged anti-competitive conduct (including
illegal win-back practices) that EE carried out in an at-
tempt to recover customers who would have moved to the
competing trader and, as a result, order EE to pay damag-
es quantified at €116,049,056, plus interest and monetary
revaluation, in addition to the publication of the sentence.
EE formally appeared in court, contesting the validity of
the opposing party’s claim in fact and law and requesting
the complete denial of the claims, as well as an order for
the plaintiff to pay damages for frivolous litigation. After
conducting the preliminary investigation phase, during
which a court-ordered phonic assessment was performed,
the Court rejected the plaintiff’s further preliminary inves-
tigation requests and adjourned the case for summing up
to a hearing scheduled for June 27, 2024.
Penalty proceeding for Enel Energia – Italy
On February 29, 2024, the Personal Data Protection Au-
thority (DPA) announced that it was levying a fine of
€79,107,101 on Enel Energia SpA, in addition to a number
of prescriptive measures.
The action originates with a proceeding undertaken by the
DPA in July 2023, during which the company was accused
of failing to adopt an adequate system for monitoring and
controlling the operation of its agencies, which, in the pe-
riod from 2015 to 2022, also made use of operators who
were not officially appointed, for the sole purpose of max-
imizing their profits even to the detriment of the company
itself.
In the meantime, the company, acting for its own protec-
tion, had already taken all the contractually established
measures against the agencies involved in the circum-
stances addressed by the penalty measure and had also
filed criminal complaints against the operators who had
acted abusively.
The company, considering the objections raised by the
DPA to be unfounded, intends to challenge the provision
before the Civil Court of Rome, filing a request for suspen-
sion of both the payment of the fine and the prescriptive
measures.
BEG litigation – Italy, France, Luxembourg
Following an arbitration proceeding initiated by BEG SpA
(BEG) in Italy, Enelpower SpA (now Enelpower Srl) obtained
a ruling 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 assessment of the possi-
ble construction of a hydroelectric power station in Albania.
Subsequently, BEG, acting through its subsidiary Albania
BEG Ambient, filed suit against Enelpower 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, ordering 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 ruling, Albania BEG Ambi-
ent demanded payment of more than €430 million.
In November 2016, Enel and Enelpower filed a petition with
the Albanian Court of Cassation, asking for the ruling is-
sued by the District Court of Tirana on March 24, 2009 to
be voided. The proceeding is still pending.
With a ruling of the Court of Appeal of Rome of March
7, 2022, the further proceedings undertaken by Enel and
Enelpower before the Court of Rome were concluded,
having sought recognition of BEG’s liability for having cir-
cumvented the arbitration award rendered in Italy in favor
of Enelpower through the aforementioned initiatives un-
dertaken by the subsidiary ABA. With the ruling, the Court
of Appeal of Rome upheld the ruling of first instance ren-
dered by the Court of Rome on June 16, 2015, which had
denied the petition in the proceeding.
On May 20, 2021, the European Court of Human Rights
(ECHR) issued a ruling with which it decided the appeal
Notes to the consolidated financial statements
433
brought by BEG against the Italian State for violation of
Article 6.1 of the European Convention on Human Rights.
With this decision, the Court denied BEG’s request to re-
open the above 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 €15,000 in non-pecuniary
damages.
Nonetheless, on December 29, 2021, BEG, with an action
that the company and its legal counsel deemed unfound-
ed and specious, also decided to sue the Italian State be-
fore 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 lia-
bility. With an order of June 14, 2022, the Court of Milan, in
accepting the objection of territorial incompetence raised
by the State Attorney, declared its incompetence to hear
the dispute in favor of the Court of Rome, the court exclu-
sively competent to hear the causes in which the Italian
State is involved, ordering BEG to pay the costs of the pro-
ceedings in favor of the defendants. BEG did not resume
the judgment before the Court of Rome within the legal
term of October 14, 2022 and therefore the proceeding
was extinguished.
A short time later, on November 3, 2022, BEG resubmit-
ted the same claims for damages of the terminated pro-
ceeding, serving a new writ of summons before the Court
of Milan against the same defendants, with the exception
of the Italian State, which BEG declared not to wishing
to agree to this judgement. Enel and Enelpower are pre-
paring their defenses to proceed with the appearance in
court in order to contest the claim, which is considered
entirely specious and unfounded, like the previous similar
initiative. Following the hearing for admission of evidence,
the Court issued an order on October 26, 2023 denying
the preliminary requests of the plaintiff and, considering
the case ready for decision, scheduled final arguments for
October 17, 2024.
Proceedings undertaken by Albania BEG
Ambient Shpk (ABA) to obtain enforcement
of the ruling of the District Court of Tirana of
March 24, 2009
Italy
With an appeal notified on September 11, 2023, Albania BEG
Ambient ShpK (ABA) initiated a proceeding before the Court
of Appeal of Rome against Enel SpA and Enelpower Srl, in
order to obtain, pursuant to Article 67 of Law 218/1995, en-
forcement of the ruling of the Court of Tirana of March 24,
2009. The two companies are preparing their defense to
contest the claim for execution in Italy as well. Following the
initial hearing, the Court of Appeal adjourned the proceed-
ing until September 18, 2025 for oral arguments.
France
In 2012, ABA filed suit against Enel and Enelpower with the
Tribunal de Grande Instance in Paris in order to render the
ruling of the Albanian court enforceable in France.
On January 29, 2018, the Tribunal de Grande Instance re-
jected ABA claim. Among other issues, the Tribunal de
Grande Instance ruled that: (i) the Albanian ruling conflict-
ed with an existing decision (the arbitration 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 pro-
ceeding, resubmitting the same claim through ABA, rep-
resented fraud.
Subsequently, with a ruling of May 4, 2021, the Paris Court
of Appeal denied the appeal by ABA, in full, upholding the
ruling at first instance and, in particular, fully upholding the
non-compatibility of the Albanian ruling with the arbitra-
tion award of 2002, ordering it to reimburse Enel and Enel-
power €200,000.00 each for legal costs.
With a ruling of May 17, 2023 the French Cour de Cassa-
tion rejected ABA’s appeal, thereby definitively denying the
ABA’s petition for execution.
Following the favorable ruling of the Court of Appeal, Enel
initiated a separate proceeding to obtain release of the
precautionary attachments granted to ABA of any receiv-
ables of Enel in respect of Enel France. With an order of
June 16, 2022, the Court of Paris ordered the release of
the precautionary attachments while also ordering ABA to
pay Enel a total of about €146,000 in damages and legal
costs. ABA challenged the aforementioned release order
and the appeal was granted by the Paris Court of Appeal
with a decision of May 17, 2023. On June 16, 2023 Enel filed
a petition and on December 15, 2023 formally appealed
that ruling before the French Cour de Cassation.
The Netherlands
In 2014, ABA filed suit with the Court of Amsterdam to
render the ruling of the Albanian court enforceable in the
Netherlands.
Following an initial ruling of June 29, 2016, in favor of ABA,
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, as it was arbitrary and manifest-
ly unreasonable and therefore contrary to Dutch public
order. Subsequently, 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 liability 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 rejected any claim made by ABA, thereby
confirming the denial of recognition and enforcement of
the Albanian ruling in the Netherlands. Moreover, having
re-analyzed the merits of the case under Albanian law,
434 Integrated Annual Report 2023
the Court found no tortious liability on the part of Enel and
Enelpower and ordered ABA to reimburse the companies
for the losses incurred in illegitimate conservative sei-
zures, to be quantified as part of a specific procedure, and
the costs of the trial and appeal proceedings.
On July 16, 2021 the Supreme Court completely rejected
ABA’s appeals, ordering it to reimburse court costs.
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. Owing to a
number of procedural delays, the proceeding is still in the
initial stages and no ruling has been issued. In particular,
after several legal representatives appointed by ABA with-
drew from the cause, in September 2023 the court sus-
pended the proceeding.
United States and Ireland
In 2014, ABA had initiated two proceedings requesting ex-
ecution of the Albanian sentence 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 Feb-
ruary 26, 2018. Accordingly, there are no lawsuits pending
in Ireland or New York State.
Environmental incentives - Endesa
Generación SA – Spain
Following the Decision of November 27, 2017 (the “Deci-
sion”) of the European Commission on the issue of envi-
ronmental incentives for thermal power plants, on March
2, 2018 the Commission’s Directorate-General for Com-
petition has initiated a formal enquiry pursuant to Article
108, paragraph 2, of the Treaty on the Functioning of the
European Union, in order to establish whether the envi-
ronmental incentive for coal power plants provided for in
Spain’s Order ITC/3860/2007 represents State aid com-
patible with the internal market. On April 13, 2018, acting
as an interested third party, Endesa Generación submitted
comments contesting this interpretation. Subsequently,
on September 8, 2021, the appeal of the decision lodged
by Gas Natural (now Naturgy) with the General Court of the
European Union was denied. The ruling was appealed by
Naturgy and EDP España before the Court of Justice of the
European Union (CJEU). Endesa Generación filed a request
to participate in the proceeding and, with an order of June
1, 2022, the CJEU allowed that participation. Subsequently,
following the filing of the ruling of the Advocate General,
on December 14, 2023, the CJEU voided both the decision
and ruling of the General Court.
Bono Social – Spain
In relation to the various financing schemes for the Bono
Social adopted by the Spanish government, with ruling
no. 212/2022 of February 21, 2022 the Tribunal Supremo
ruled on the appeals filed by Endesa SA, Endesa Energía
SAU and Energía XXI Comercializadora de Referencia SLU
(Endesa) and other companies in the energy sector against
the third scheme for financing the Bono Social, and for
co-financing with government authorities of the supply to
vulnerable consumers, envisaged under Article 45, para-
graph 4 of Spain’s Electricity Industry Law 24/2013, Roy-
al Decree Law 7/2016 of December 23 and Royal Decree
897/2017 of October 6.
With the ruling, the Tribunal Supremo, partially allowing
the appeals, found that (i) the aforesaid regime was inap-
plicable; (ii) Articles 12 to 17 of Royal Decree 897/2017 are
inapplicable and void, and (iii) the appellants were entitled
to be compensated for the amounts paid to finance the
Bono Social and provide co-financing with government
authorities, and to reimbursement of all costs incurred to
fulfill the obligations set out in this mechanism, deducting
any amounts transferred to customers, where applicable.
In the absence of voluntary compliance by the authorities,
on November 10, 2022 the companies filed a petition for
enforcement of the ruling, requesting immediate payment
of the uncontested part, equal to about €152 million, for fi-
nancing costs associated with customers in the regulated
market, as well as payment of other amounts as quantified
in the technical studies prepared by the companies. With
an order of May 26, 2023 the Tribunal Supremo (i) ordered
the government to pay Endesa €152,272,229.83, plus in-
terest, (ii) required the Ministry for the Ecological Transi-
tion and the Demographic Challenge (MITECO) to quantify
as soon as possible the additional amounts to be paid to
Endesa in respect of (a) costs to finance the Bono Social
for the free market, deducting any amounts transferred
to customers, and (b) investments made to implement the
Bono Social, and to pay Endesa those amounts, plus in-
terest, within two months. On July 28, 2023, the Secretary
of State for Energy (MITECO) announced a resolution that
grants Endesa (i) an indemnity of €171.6 million (including
interest) for financing costs associated with customers in
the regulated market and (ii) an additional indemnity of
€6.6 million (including interest) for costs incurred to im-
plement the Bono Social. However, the resolution does not
provide for any indemnity for the financing costs of the
Bono Social for the free market. Therefore, on September
18, 2023 Endesa filed arguments supported by technical
studies with the Tribunal Supremo to demonstrate Ende-
sa’s entitlement to be indemnified for the free market seg-
ment as well.
Notes to the consolidated financial statements
435
“Endesa I and II” industrial relations dispute –
Spain
After being signed by the social partners and entering
force on January 23, 2020, the 5th Endesa Collective Bar-
gaining Agreement was published in the Spanish Official
Journal (Boletín Oficial del Estado) on June 17, 2020, taking
full effect.
On December 30, 2020, the Audiencia Nacional notified
Endesa a new petition for a “collective dispute” initiated
by three trade unions with minority representation filed on
December 1, 2020, concerning the cancellation of some
“derogatory provisions” of the 5th Endesa Collective Bar-
gaining Agreement. The plaintiffs claim that the contested
“derogatory provisions” would imply the illegitimate abo-
lition of social benefits and economic rights of workers.
Endesa considers these provisions to be fully legitimate,
in line with the arguments made during proceeding con-
cerning the reduction of social benefits for retired person-
nel. With a ruling of November 15, 2021, the petitions of
the plaintiff unions were rejected, with verification of the
legitimacy of the 5th Endesa Collective Bargaining Agree-
ment. The ruling was appealed by the trade unions before
the Tribunal Supremo and the proceeding is currently un-
der way.
Moreover, with reference to the 4th Endesa Collective Bar-
gaining Agreement, on July 7, 2021 the Tribunal Supremo
issued a definitive ruling denying the appeals lodged by
the aforementioned unions against the termination of
the agreement by Endesa, affirming that social benefits
(including those relating to electricity prices) originate ex-
clusively in the collective bargaining agreements, 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 agreements produces the
general contractual regulation of the conditions estab-
lished therein for employees currently in service and, for
those who have retired and their family members, the de-
finitive extinction of all their rights, until new regulations
(which came with the 5th Endesa Collective Bargaining
Agreement). That decision is also definitive for the individ-
ual proceeding brought concerning the same issue.
GNL Endesa Generación SA arbitration
proceeding I – Spain
In the course of an arbitration proceeding to review the
price of a long-term supply contract for liquefied natural
gas (LNG) initiated by Endesa Generación SA, the defen-
dant, an LNG production company, filed a counterclaim
demanding payment of about $1.283 billion at September
30, 2023. The proceeding was concluded with an award on
November 15, 2023, with the partial grant of the counter-
claim. Both parties filed petitions for clarification and cor-
rection of the award; a decision is pending. Meanwhile, the
defendant issued an invoice in the amount of $587 million.
GNL Endesa Generación SA arbitration
proceeding II – Spain
In March 2023, a liquefied natural gas (LNG) producer initi-
ated an arbitration proceeding within the context of a pro-
ceeding for the revision of the price of a long-term supply
contract for LNG against Endesa Generación SA, demand-
ing payment of about $585 million at December 31, 2023.
The amount of the claim could be revised depending on
market developments in months up to the completion of
arbitration proceeding, which is scheduled for the 2nd
Half of 2024. The company believes that this counterclaim
is unfounded.
Tractebel litigation – Brazil
In 1998 the Brazilian company CIEN (now Enel CIEN) signed
an agreement with Tractebel (now Engie Brasil Energia SA)
for the delivery of electricity from Argentina through its
Argentina-Brazil interconnection line. As a result of Argen-
tine regulatory changes introduced as a consequence of
the economic crisis in 2002, Enel CIEN was unable to make
the electricity available to Tractebel.
In October 2009, Tractebel sued Enel CIEN for alleged
breach of contract. Enel CIEN submitted its defense cit-
ing force majeure as a result of the Argentine crisis as the
main argument. Out of court, Tractebel indicated that it
plans to acquire 30% of the interconnection line involved
in the dispute. With a ruling of February 16, 2023, the court
of first instance denied the grounds of the claim submitted
by Tractebel against Enel CIEN. The ruling was appealed
by Tractebel on March 20, 2023, but on February 29, 2024
the Court of Appeal upheld the decision at first instance in
favor of Enel CIEN. The amount involved in the dispute is
estimated at about R$715 million (about €133 million), plus
damages to be quantified.
For similar reasons, the company Furnas, in May 2010, had
also presented a sue against Enel CIEN for the failure to
deliver electricity, requesting payment of about R$571.6
million (about €91 million), plus damages to be quantified,
with a claim to acquire 70% of the interconnection line.
The trial concluded in favor of Enel CIEN with a sentence
issued by the Tribunal de Justiça, which became final on
October 18, 2019, which rejected all of Furnas’ claims.
Cibran litigation – Brazil
Companhia Brasileira de Antibióticos (Cibran) has filed
six suits against the Enel Group company Ampla Energia
e Serviços SA (today Enel Distribuição Rio de Janeiro) to
obtain damages for alleged losses incurred as a result of
the interruption of electricity service by the Brazilian dis-
tribution 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 Enel Distribuição Rio de Janeiro.
The latter challenged the findings, asking for a new study,
436 Integrated Annual Report 2023
which led to the denial of part of Cibran’s petitions. Cibran
subsequently challenged the findings of the new study,
but without success.
The first suit, regarding the years from 1995 to 1999, was
denied in full with a ruling that became definitive on Au-
gust 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 Enel Distribuição Rio de Ja-
neiro to pay R$96 million (about €23 million) plus interest
in pecuniary damages and R$80,000 (about €19,000) in
non-pecuniary damages. On November 6, 2019, the Tri-
bunal de Justiça of Rio de Janeiro issued a ruling granting
Enel Distribuição Rio de Janeiro’s petition, and denying all
of Cibran’s claims. Subsequently, all the appeals submitted
by Cibran between 2019 and 2022 were denied in full and,
accordingly, the decision of November 6, 2019 in favor of
Enel Distribuição Rio de Janeiro became final on March 24,
2023.
The remaining four suits for the years 2001 and 2002,
which had been suspended pending the decision con-
cerning the petition filed in 2006, are waiting to be tak-
en up again. The value of all the disputes is estimated at
about R$729 million (about €131 million).
Coperva litigation – Brazil
As part of the project to expand the grid in rural areas of
Brazil, in 1982 Coelce Companhia Energética do Ceará SA
(today Enel Distribuição Ceará), then owned by the Brazil-
ian government and now an Enel Group company, had en-
tered into contracts for the use of the grids of a number
of cooperatives established specifically to pursue the ex-
pansion project. The contracts provided for the payment
of a monthly fee by Enel Distribuição Ceará, which was also
required to maintain the networks.
Those contracts, between cooperatives established in
special circumstances, did not specifically identify the
grids governed by the agreements, which prompted a
number of the cooperatives to sue Enel Distribuição
Ceará asking for, among other things, a revision of the
fees agreed.
These proceedings include: (a) the suit filed by Cooperati-
va de Eletrificação Rural do Vale do Acarau Ltda (Coperva)
with a value of about R$475 million (about €89 million): Enel
Distribuição Ceará was granted rulings in its favor from the
trial court and the Court of Appeal, but Coperva filed an
appeal (embargo de declaração) based on procedural is-
sues, which was also denied by the Court of Appeal in a
ruling of January 11, 2016. On February 3, 2016, Coperva
lodged an extraordinary appeal before the Tribunal Supe-
rior de Justiça (TSJ) against the ruling on the merits, which
was granted on November 5, 2018 for the ruling issued in
the previous appeal (embargo de declaração). On Decem-
ber 3, 2018, Enel Distribuição Ceará filed an appeal (agravo
interno) against this ruling of the TSJ and the proceeding
is currently pending; and (b) the suit filed by Cooperativa
de Energia, Telefonia e Desenvolvimento Rural do Sertão
Central Ltda (COERCE) with a value of about R$285 mil-
lion (about €53 million): in the suit COERCE requested a
revision of the fee agreed for the use of its grids to be
calculated on the basis of 2% of their value. The judgment
is pending before the court of first instance, pending the
performance of an engineering appraisal.
ANEEL litigation – Brazil
In 2014, Eletropaulo (today Enel Distribuição São Paulo) ini-
tiated an action before the Brazilian federal courts seeking
to void the administrative measure of the Agência Na-
cional de Energia Elétrica (ANEEL, the national electricity
agency), which in 2012 retroactively introduced a nega-
tive coefficient to be applied in determining rates for the
following regulatory period (2011-2015). With this provi-
sion, ANEEL ordered the restitution of the value of some
components of the network previously included in rates
because they were considered non-existent and denied
Enel Distribuição São Paulo’s request to include addition-
al 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 has concluded and we are awaiting the de-
cision. The value of the suit is about R$1,3 billion (about
€245 million).
Endicon – Brazil
On October 17, 2021 Endicon (former Enel service provid-
er in Brazil) filed a lawsuit against Enel Distribuição Rio de
Janeiro and Enel Distribuição Ceará in which it seeks total
damages of approximately R$500 million (about €93 mil-
lion) for pecuniary and non-pecuniary damages incurred
in connection with certain events allegedly attributable to
Group companies, which occurred during the execution of
the contracts and from the abusive exercise of contractual
rights by the latter, which is alleged to have produced a
loss on the management of the contracts. Following the
revocation on May 10, 2022 of the precautionary measure
that had been previously notified to the companies, on
December 2, 2021, Enel Distribuição Rio de Janeiro and
Enel Distribuição Ceará presented their defenses in the
proceedings on the merits, and the evidentiary stage of
the first-instance proceeding is continuing.
Socrel – Brazil
Enel Distribuição São Paulo has been sued by Serviços de
Eletricidade and Telecomunicações Ltda (Socrel) for dam-
ages for losses caused by an alleged unlawful termination
of contract by the Group company that involved a series of
contracts between the parties, which would have caused
Socrel’s liquidity crisis. Following an expert report issued
Notes to the consolidated financial statements
437
during the proceedings, Socrel’s request was quanti-
fied at R$321 million (about €61 million). With the ruling
of March 27, 2023, the Tribunal de Justiça do Estado de
São Paulo denied the entire substance of the Socrel claim.
Socrel challenged the ruling, which was overturned with a
ruling of November 7, 2023 and remanded for trial at first
instance to hear oral evidence not allowed in the first pro-
ceeding.
Extraordinary 2022 rate revision (Ceará) –
Brazil
On April 19, 2022, the Agência Nacional de Energia Elétri-
ca (ANEEL) issued resolution no. 3.026/2022 with which it
authorized an average 24.85% rate increase for 2022 for
the electricity distribution services performed by Enel Dis-
tribuição Ceará. Both private individuals and public insti-
tutions have challenged this resolution before the Federal
Regional Court of the district of Ceará, for a total of six
proceedings requesting, on precautionary basis, the can-
cellation of the effects of the resolution and, on a perma-
nent basis, the voidance of the resolution itself, arguing
that the rate increase is illegitimate. In all proceedings,
Enel Distribuição Ceará has contested the petitioners’
claims, arguing the legitimacy of the rate adjustment. On
June 21, 2022, the Federal Regional Court rejected the pre-
cautionary request and joindered the six proceedings in a
single proceeding in consideration of fact that the relief
sought and the cause of action are the same. On Septem-
ber 23, 2022, Enel Distribuição Ceará also submitted that,
as a result of certain subsequent legislative measures, the
rate had been reduced following an extraordinary rate re-
view and a reduction in taxes. The ruling remains pending.
The estimated value of the proceeding has not been de-
termined. Moreover, on July 31, 2023, an additional action
was filed by one of the public petitioners with the Federal
Regional Court for reasons connected with the previous
actions, arguing that the rate increase was excessive in
relation to the poor quality of service provided and al-
leged contractual breaches, as well as asking for collec-
tive non-pecuniary damages of about R$55 million (about
€10.6 million).
CTEEP – Brazil
On March 16, 2021 Enel Distribuição São Paulo (formerly
Eletropaulo Metropolitana Eletricidade de São Paulo SA -
Eletropaulo) filed a debt collection action before the Tri-
bunal de Justiça do Estado de São Paulo in the amount
of about R$1.5 billion against the transmission system
operator ISA CTEEP - Companhia de Transmissão de En-
ergia Elétrica (CTEEP) as the original debtor for a liability
arising prior to the privatization of Eletropaulo, against
Centrais Elétricas Brasileiras SA (Eletrobras), which had
initially been paid by Eletropaulo to the latter as part of a
settlement agreement. With a decision of September 26,
2023, the competent Court of Appeal upheld the ruling
at first instance, which had denied Enel Distribuição São
Paulo’s claim, also quantifying the defense’s legal costs
due for losing the cast at 13% of the present value of the
claim, for an amount equal, at December 2023, to about
R$365 million (about € 68 million). With a ruling of January
12, 2024 the Court of Appeal denied the appeal of that
decision by Enel Distribuição São Paulo. On February 23,
2024 the company also appealed the latter ruling before
the higher courts.
Black-out November 2023 São Paulo – Brazil
Following the severe weather events that on November
3, 2023 hit the concession area of Enel Distribuição São
Paulo (ED SP), on December 31, 2023, 341 individual ac-
tions and 6 collective actions were filed by representa-
tives of municipalities, unions, political parties, the public
prosecutor and the public defender’s office requesting
the grant of precautionary measures, the provision of as-
sistance by ED SP, the provision of information/documen-
tation, the maintenance of distribution service levels and
the payment of individual and collective pecuniary and
non-pecuniary damages to be determined in court. At De-
cember 31, 2023, the overall value of the individual actions
was about R$6.2 million (about €1.2 million) while the value
of the collective actions was undetermined.
Black-out November 2023 Rio de Janeiro –
Brazil
Following the severe weather events that on November
18, 2023 hit the concession area of Enel Distribuição Rio
de Janeiro (ED RJ), on December 31, 2023, 3,308 individual
actions and 16 collective actions were filed by represen-
tatives of municipalities, the public prosecutor and the
public defender’s office requesting the grant of precau-
tionary measures, the provision of assistance by ED RJ, the
provision of information/documentation, the maintenance
of assistance measures and the payment of individual
and collective pecuniary and non-pecuniary damages to
be determined in court. At December 31, 2023 the over-
all value of the individual actions was about R$61.3 million
(about €11.4 million) while the value of the collective ac-
tions was undetermined.
GasAtacama Chile – Chile
In January 2020, the appeal proceeding was completed for
the administrative fine levied in August 2016 by the Super-
intendencia de Electricidad y Combustibles (SEC) against
GasAtacama Chile (now Enel Generación Chile) concern-
ing the information provided to the CDEC- SING (Centro
de Despacho Económico de Carga) in relation to the vari-
ables of the Technical Minimum and the Minimum Opera-
tion Time at the Atacama power station. Upon completion
of the proceeding, the amount of the fine was reduced
from approximately $6 million to about $432,000 and the
amount was paid by the company.
438 Integrated Annual Report 2023
In relation to the issue mentioned above, a number of op-
erators of the Sistema Interconectado del Norte Grande
(SING), including Aes Gener SA, Eléctrica Angamos SA
and Engie Energía Chile SA, sued GasAtacama Chile in
2017 seeking damages for a total amount of about €189
million. On October 17, 2023, the Civil Court of Santiago
issued a ruling partially upholding the plaintiffs’ petitions
in an amount to be quantified at a subsequent stage of
the proceeding. On October 31, 2023 the ruling was chal-
lenged by all the defendants and the appeal proceeding is
pending. The company and its external legal counsel feel
that the likelihood of the plaintiffs’ claim being upheld on
appeal is remote.
Compañía Minera Arbiodo – Chile
In 2016, Compañía Minera Arbiodo and Ingenieros Ase-
sores Limitada filed a suit against the Ministerio de Bienes
Nacionales, the Ministerio de Energía, the Ministerio de
Minería (together, the “Ministry”), the Servicio Nacional de
Geología y Minería (Sernageomin), Enel Green Power Chile
(EGP Chile) and Parque Eólico Taltal SA seeking damages
for alleged losses incurred as a result of presumed viola-
tions of mining rights to the soil underneath the land on
which the Taltal wind farm, which was built under a minis-
terial concession granted in 2012, is located.
With decision of December 6, 2023, the Civil Court of
Santiago ordered Parque Eólico Taltal and EGP Chile, joint-
ly and severally with Sernageomin, to pay an amount of
about 346 billion Chilean pesos (equal to about €367 mil-
lion) in favor of the plaintiffs.
The decision was challenged by the Group companies on
December 22, 2023 and the appeal proceeding is pend-
ing. The companies and their external legal counsel feel
that the likelihood of the plaintiffs’ claim being upheld on
appeal is remote.
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 Qui-
mbo project for the construction by Emgesa (now Enel
Colombia) of a 400 MW hydroelectric plant in the region
of Huila (Colombia). More specifically, the first collective
action, currently in the preliminary stage, was brought by
around 1,140 residents of the municipality of Garzón, who
claim that the construction of the plant would reduce their
business revenue by 30%. A second action was brought,
between August 2011 and December 2012, by residents
and businesses/associations of five municipalities of Hui-
la 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 September 11, 2020, the Huila Court issued
a partially unfavorable ruling against Emgesa, sentencing it
to fulfill the obligations already provided for in the environ-
mental license. Both the Autoridad Nacional de Licencias
Ambientales (ANLA) and Emgesa challenged this decision
before the Council of State. On September 20, 2022, AN-
LA’s appeal was denied because it had been filed late. The
proceeding continues in relation to Emgesa’s appeal.
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 sub-
sequently extended the six-month time limit, and there-
fore, in the absence of contrary court rulings the Quimbo
plant is continuing to generate electricity as the oxygen-
ation system installed by Emgesa has so far demonstrat-
ed that it can maintain the oxygen levels required by the
court. On March 22, 2018, ANLA and CAM jointly presented
the final report on the monitoring of water quality down-
stream of the dam of the El Quimbo hydroelectric plant.
Both authorities confirmed the compliance of Emgesa
with the oxygen level requirements. On January 12, 2021,
it was learned that the ruling of first instance of the Court
of Huila had been issued. The ruling, while acknowledging
that the oxygenation system implemented by Emgesa had
mitigated the risks associated with the protection of fau-
na in the Bethany basin, imposed a series of obligations
on the environmental authorities involved, as well as on
Emgesa itself. In particular, the latter is required to imple-
ment 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 subject to verification by ANLA,
and to make permanent the operation of the oxygenation
system, adapting it to comply with the parameters estab-
lished 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 continuing at the ap-
peal level.
Nivel de Tensión Uno proceedings – Colombia
This dispute involves an “acción de grupo” brought by
Centro Médico de la Sabana hospital and other parties
against Codensa (now Enel Colombia) seeking restitu-
tion of allegedly excess rates. The action is based upon
the alleged failure of Codensa to apply 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 Resolution no. 82/2002, as
amended by Resolution no. 97/2008. The preliminary stage
Notes to the consolidated financial statements
439
has been completed and a ruling is pending. The estimat-
ed value of the proceeding is about 337 billion Colombian
pesos (about €96 million).
Group actions for flooding in Bosa and
Kennedy neighborhoods of Bogotá –
Colombia
Emgesa SA (now Enel Colombia SA) was sued with an “ac-
ción de grupo” brought by the residents of the Bosa and
Kennedy neighborhoods of Bogotá (Colombia) seeking
damages for flooding that occurred in 2010 and 2011 after
the Bogotá overflowed its banks. The proceeding is at the
preliminary stage. The estimated value of the proceeding
is about 2.2 billion Colombian pesos (about €518 million).
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-
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 proceeding, but no specif-
ic 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
Infraestructura Participación SA de Cv (which is controlled
by Caisse de Dépôt et Placement du Québec) and CKD In-
fraestructura México SA de Cv.
On August 4, 2023, the arbitration ruling was notified. The
arbitration board declared that it did not have jurisdiction
against Enel SpA and, in partially granting the claim of the
Project Companies, ordered Kino Contractor and Kino Fa-
cilities (now Enel Services Mexico SA de Cv - Enel Services)
to pay penalties totaling about $77 million, plus interest at
an annual rate of 6%. Subsequently, Kino Contractor and
Enel Services filed a petition requesting correction of the
arbitration award, which was partially granted and, on De-
cember 13, 2023, they filed a petition to void the award
before the Mexican courts. The proceeding is pending.
In December 2023, the Project Companies filed a suit be-
fore the Supreme Court of the State of New York against
Enel, in its capacity as guarantor of the obligations as-
sumed by Kino Contractor, to request payment due by the
latter under the provisions of the arbitration award. The
substance and legal grounds of the suit are being con-
tested in full and the proceeding is pending.
Allianz – North America
On May 18, 2022, High Lonesome Wind Project LLC was
sued in New York Superior Court by Allianz Risk Transfer
Ltd for about $203 million concerning an alleged liability
accrued by the company, as of February 2021, in connec-
tion with a Proxy Revenue Swap. The claim is being con-
tested in its entirety. The proceedings are currently pend-
ing before the Southern District Court in New York.
Osage Wind – North America
As part of a lawsuit filed by the United States (in its capac-
ity as trustee of the Osage Nation) and the Osage Miner-
al Council against Enel Green Power North America, Enel
Kansas LLC and Osage Wind LLC, on December 20, 2023 a
ruling of the Oklahoma District Court ordered the removal
of the wind farm and the continuation of the proceeding
for damages, which were quantified by the plaintiffs in the
amount of at least $25 million. The proceeding is continu-
ing at first instance and the plaintiffs’ claims have been
contested. The ruling, which is not final, will be appealed at
the appropriate time.
Gastalsa – Peru
In February 2022, Enel Generación Piura SA (EGPIURA)
learned of a precautionary measure issued by the Civil
Court of Talara of the Superior Court of Justice of Sullana
(Juzgado Civil de Talara de la Corte Superior de Justicia de
Sullana) in favor of Empresa de Gas de Talara SA (Gastal-
sa) which orders the Dirección General de Hidrocarburos
del Ministerio de Energía y Minas, the Organismo Superior
de la Inversión en Energía y Minería (OSINERGMIN) and the
Ministry of Energy to (i) restore the natural gas concession
of the Parinas district in favor of Gastalsa; and (ii) pro-
ceed with the upgrade and transfer of the pipeline owned
by EGPIURA (which supplies natural gas to the Malacas
thermal power station) to Gastalsa. That precautionary
measure was a consequence of the ruling issued by the
Court of Talara partially granting a claim filed by Gastalsa
requesting to revoke the measure that canceled the con-
cession granted to Gastalsa and the consequent transfer
of the gas pipeline owned by EGPIURA to Gastalsa itself.
On August 2, 2022, the Sala Civil de la Corte Superior
de Justicia de Sullana ruled against Gastalsa in the sec-
ond-level appeal, referring the case to the court of first
instance for a new decision. As a result of that decision,
on September 9, 2022, the precautionary measure issued
earlier was revoked.
In the meantime, in July 2022, the Constitutional Court had
granted the petition of the system operator, an interest-
ed third party, acknowledging that the original petition of
Gastalsa had been filed after the time limit. On January 24,
2023 the Constitutional Court also denied the appeal of
that measure, which has thus become final, and ordered
the Court of Appeal to issue a new decision concerning
the forfeiture of the petition.
440 Integrated Annual Report 2023
With a ruling of June 27, 2023, the Court of Appeal denied
the claim of forfeit advanced by an affected third party,
while with a decision of July 25, 2023 the court of first in-
stance revoked the suspension of the proceeding that had
been ordered and took up the case for a decision. With a
measure of September 15, 2023, the court found the claim
that the provision was null raised by EGPIURA and the oth-
er party was unfounded and scheduled oral arguments for
September 25, 2023. EGPIURA and the other party in the
proceeding appealed that ruling with the Court of Appeal,
which, with decision of January 20, 2024, revoked the ap-
pealed measure and remanded the suit for trial at first in-
stance. A decision is pending.
In the meantime, on August 9, 2023 EGPIURA also filed an
appeal with the Superior Court of Justice of Lima against
the decision of June 27, 2023 of the Court of Appeal, argu-
ing that it conflicted with the ruling of the Constitutional
Court of January 24, 2023.
The hearing to argue the case is scheduled for August 7,
2024.
Gabčíkovo litigation – 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 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 over-
turned the ruling of the trial court and voided the contract
as part of the action pursued by the PPO. SE lodged an
extraordinary appeal against that decision before the Su-
preme Court. At a hearing of June 29, 2016, the Supreme
Court denied the appeal and SE then appealed the ruling
to the Constitutional Court, which denied the appeal with
a ruling on January 18, 2017, which then became final.
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 was entitled to an indemnity in
the event of the early termination of the VEG Operating
Agreement for reasons not attributable to SE. On June 30,
2017, the arbitration court issued its ruling denying the re-
quest of SE.
In parallel with this arbitration proceeding, 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 Agreement. These pro-
ceedings were rejected for procedural reasons on Sep-
tember 27, 2017. Both VV and MHM appealed that decision,
and both the appeals were denied upholding the trial court
decision in favor of SE. VV filed a further appeal (dovolanie)
against that decision on March 9, 2020, with the Supreme
Court, to which SE replied with a brief submitted on June
8, 2020. SE also filed an appeal before the Slovak Constitu-
tional Court, which was denied on July 29, 2021. On March
24, 2021, the Supreme Court overturned the decision of
the Bratislava Court of Appeal, referring the judgment to
the latter court, and the proceeding is currently pending.
At the local level, VV has also filed other suits against SE for
alleged unjustified enrichment (estimated at about €360
million plus interest) for the period from 2006 to 2015. SE
filed counterclaims for all of the proceedings under way.
Developments in those proceedings can be summarized
as follows:
i. for 2006-2008, at the hearing of June 26, 2019, the
Court of Bratislava rejected VV’s main claim and, con-
sequently, SE’s counterclaim. The ruling in first instance
was appealed by both parties before the Court of Appe-
al of Bratislava. The proceedings relating to 2006 were
completed with the decision of December 6, 2022,
notified to SE on February 18, 2023, which upheld the
ruling in first instance. In April 2023, both SE and VV
filed extraordinary appeals before the Supreme Court
against the Court of Appeal ruling and the proceeding
is pending. As regards the proceedings relating to 2007,
the Court of Appeal, in a ruling dated January 31, 2023,
notified to SE on April 12, 2023, voided the decision of
first instance, referring the case back to the Court of
Bratislava for a new judgment. The first hearing was held
on January 8, 2024 and the proceeding was adjourned
to a hearing scheduled for September 11, 2024. The
proceedings relating to 2008 are still pending;
ii. the proceedings relating to the years 2011 and 2015 are
all pending before the court of first instance and briefs
have been exchanged between the parties. For both
proceedings, hearings before the court of first instance
were postponed several times owing to the pandemic
and are now postponed to dates to be determined;
iii. the proceedings relating to the years 2009, 2010 and
2013 were completed in the court of first instance with
ruling issued by the Court of Bratislava on, respecti-
vely, November 24, 15 and 22, 2022, rejecting both VV’s
Notes to the consolidated financial statements
441
claim and SE’s counterclaim. Between December 2022
and January 2023 both SE and VV filed appeals against
the rulings relating to the years 2009, 2010 and 2013,
and the proceeding is now pending. The proceedings
relating to 2014 were completed at first instance with
a ruling of the Court of Bratislava of October 10, 2023,
which has not yet been published, rejecting the primary
claim of VV and, consequently, the counterclaim of SE;
iv. as regards the proceeding relating to the year 2012, on
February 2, 2023 SE was notified of the appeal ruling
upholding the ruling of first instance denying of both
VV’s claim and SE’s counterclaim. Both VV and SE, on
March 17, 2023 and March 31, 2023, respectively, have
filed an extraordinary appeal with the Supreme Court
against the appellate ruling and the proceeding is pen-
ding.
Finally, in another proceeding VV asked for SE to return
the fee for the transfer from SE to VV of the technology
assets of the Gabčíkovo plant as part of the privatization,
with a value of about €43 million plus interest. After issu-
ing a preliminary decision on the case in which it noted the
lack of standing of VV, 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.
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) sub-
scribed by its Panamanian subsidiary, which had been es-
tablished to raise funds abroad. Under the special rules
then in force, subject to maintaining the bond until 2008,
the interest paid by Ampla to its subsidiary was not subject
to withholding 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 extinguishment of the bond, 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 prompt-
ly 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
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, now Enel Distribuição
Rio de Janeiro, provided the additional documentation
and, in view of the conclusions presented by the expert,
requested a further expert opinion. The case has been re-
ferred to the expert for clarifications regarding the posi-
tion expressed by the company.
In July 2021, the supplementary report was filed by the ex-
pert in which the existence of the loan agreements was
acknowledged and the bond loan was terminated, both
for the principal amount and for interest, mainly through a
capital increase. The company, called to pronounce on the
report filed, requests the full cancellation of the tax debt.
The amount involved in the dispute at December 31, 2023
was about €270 million.
PIS/COFINS/ICMS – Enel Distribuição São Paulo
In March 2017, the Supremo Tribunal Federal of Brazil (STF)
ruled on the calculation of the PIS and COFINS taxes, con-
firming the argument that the ICMS (Imposto sobre Circu-
lação de Mercadorias e Serviços, tax on the circulation of
goods and services) tax was not included in the calculation
basis of the PIS and COFINS.
In May 2021, the STF established that the ruling would
have effect from the judgment of March 2017, except for
taxpayers who had filed an appeal before that date.
The Group’s Brazilian companies affected by the STF rul-
ing had already initiated legal action in their respective
federal regional courts. Subsequently, the latter notified
them of the final decision, recognizing the right to deduct
the ICMS applied to their operations from the calculation
basis of the PIS and COFINS. Since the excess payment
of the PIS and COFINS taxes had been transferred to final
customers, at the same time as the recognition of these
recoverable taxes, a liability in respect of those customers
was recognized in the same amount, net of any costs in-
curred or to be incurred in the legal proceedings. These
liabilities represent an obligation to reimburse the recov-
ered taxes to final customers.
In this regard, Enel Distribuição São Paulo initiated two
proceedings that led to rulings in its favor. These regarded
the periods from December 2003 to December 2014 and
from January 2015 onwards. With regard to the second
proceeding, the Federal Union filed an action of rescission
against the company, disputing the fact that part of the
period in question (prior to March 2017) would be adverse-
ly impacted by the STF ruling of May 2021.
In May 2022, the company challenged this action and will
defend its actions through the various levels of the court
system. During 2023, following an adverse ruling at the ap-
442 Integrated Annual Report 2023
peal level, the company filed a new appeal seeking clarifi-
cation of the ruling.
The estimated amount involved in the proceeding at De-
cember 31, 2023 was about €235 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 values generated by extraordinary corpo-
rate 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 at December 31, 2023
was about €158 million.
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, 2023
was about €134 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 (2003, 2004, 2006-
2012, 2015, 2016 and 2018) and Eletropaulo (2008-2021),
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
€106 million at December 31, 2023.
Withholding Tax – Endesa Brasil
On November 4, 2014, the Brazilian tax authorities issued
an assessment against Endesa Brasil SA (now Enel Brasil
SA) alleging the failure to apply withholding tax to divi-
dends, reclassified as payment of income to non-resident
recipients.
More specifically, in 2009, Endesa Brasil, as a result of
the first-time application of the IFRS, had derecognized
goodwill, 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
in court and the appropriateness of the accounting treat-
ment.
The overall amount involved in the dispute at December
31, 2022 was about €77 million.
ICMS – Coelce
The State of Ceará has filed various tax assessments
against Companhia Energética do Ceará SA over the years
(for tax periods 2015-2018), as well as against all other en-
ergy distributors in Brazil, demanding the ICMS (Imposto
sobre Circulação de Mercadorias e Serviços, tax on the
circulation of goods and services) on the subsidies paid by
the Federal government against the regulatory discounts
granted to certain consumers.
The company has appealed the individual assessments
and is defending its actions in the various levels of juris-
diction.
The overall amount involved in the dispute at December
31, 2023 was about €69 million.
PIS/COFINS – Eletropaulo
Starting from June 2017, the Federal Tax Authority served a
number of tax assessment notices against Eletropaulo (for
the 2013-2018 tax periods) contesting the offsetting of tax
credits relating to social security contributions (PIS and
COFINS), requesting the payment of those contributions.
The tax authorities argue that the company has claimed
PIS and COFINS credits for the purchase of goods and
Notes to the consolidated financial statements
443
services that cannot be considered fiscally relevant since
they are not essential for the distribution of electricity. Fur-
thermore, it disputes the claim of a tax credit associated
with “non-technical” losses on the electricity purchased.
The company has promptly defended the accuracy of its
calculations in the various levels of jurisdiction and argued
the validity of the offsets claimed.
The estimated amount involved in the proceeding at De-
cember 31, 2023 was about €55 million.
ICMS (pro-rata) – Coelce
The State of Ceará has filed various tax assessments against
Companhia Energética do Ceará SA over the years (for tax
periods from 2005 to 2014), contesting the determination
of the deductible portion of the ICMS (Imposto sobre Cir-
culação de Mercadorias e Serviços, tax on the circulation of
goods and services) and in particular the method of calcula-
tion 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-in-
come 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 ju-
risdiction.
The overall amount involved in the dispute at December 31,
2023 was about €52 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 measure (Ex-
ecutive Provisional Order).
Subsequently, the provisional measure was re-issued five
times before its definitive ratification into law in 1998. Under
Brazilian legislation, an increase in the tax rate (or the estab-
lishment 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 (Decem-
ber 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 author-
ity 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 Gen-
eral of the Brazilian National Treasury Department to replace
the bank guarantee with a deposit in court, the court of sec-
ond instance granted the petition. The company 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,
2023 was about €48 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 (social
contributions) relating to sums paid from September 1989
to March 1992.
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 legitima-
cy 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,
2023 was about €48 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 2011 to 2014).
With reference to the main claims, the companies involved
have challenged the related assessments at the first admin-
istrative level (Tribunal Económico-Administrativo Central -
TEAC), defending the correctness of their actions.
On April 4, 2022, the TEAC rejected the appeal and the com-
panies are continuing to defend their actions in court (Audi-
encia Nacional).
With regard to the disputes concerning corporate income
tax, the issues for which an unfavorable outcome is consid-
ered possible amounted to about €134 million at December
31, 2023:
444 Integrated Annual Report 2023
i. Enel Iberia is defending the appropriateness of the crite-
rion adopted for determining the deductibility of capital
losses deriving from stock sales (around €88 million) and
certain financial expense (around €15 million);
ii. Endesa and its subsidiaries are mainly defending the ap-
propriateness of the criteria adopted for the deductibility
of certain financial expense (about €25 million) and co-
sts for decommissioning nuclear power plants (about €6
million).
In 2021, the Spanish tax authorities completed a new gener-
al audit for the years 2015 to 2018. The companies involved
have challenged the related assessments at the first admin-
istrative level (TEAC), defending the correctness of their ac-
tions.
With reference to the main claims concerning corporate tax
and regarding the deductibility of certain financial expense,
the dispute that could produce an adverse ruling amounts
to about €226 million at December 31, 2023 (Enel Iberia
€213 million; Endesa SA €13 million).
58. Environmental programs
Some Group companies are affected by national or supra-
national environmental regulatory standards designed to
develop the use of environmental protection mechanisms
in accordance with the environmental policies of the Euro-
pean Union and global international agreements.
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 Renov-
ables SA (EUFER) into Enel Green Power España SL in 2011 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 actions
in court (Audiencia Nacional).
The overall amount involved in the dispute at December 31,
2023 was about €98 million.
58.1 Terms and nature of environmental
programs
The main environmental programs affecting Group com-
panies are summarized in the following table in accor-
dance with ESMA Public Statement of October 25, 2023
– Priority 1: Climate-related matters.
Program
Terms of the mechanism
Nature
EU ETS(78)
Energy
efficiency
certificates
The scheme, which applies in all EU countries, sets an annual cap on emissions that
is being progressively reduced to bring down the total emissions in Europe.
The fourth trading period (2021-2030) has been tightened up as part of the EU’s
contribution to the Paris Climate Agreement.
At the annual cap correspond a specific number of allowances (for each authorized
industrial plant) that are granted, through participation in auctions or for free, by the
competent local authority, freely transferable and traded between operators.
The obliged companies shall surrender several allowances equivalent to their
polluting emissions for each reporting period.
Mandatory by law “cap and trade” scheme.
Within the Group, CO2 allowances are
applicable to the thermal power generation
companies operating in Italy and Spain.
In those countries in which the Group is
engaged in thermal power generation
activity, European regulations have required
that EU Allowances (EUAs) are assigned via
auction, and they are not granted for free.
The scheme has the objective to reduce the energy consumption by end-users
through various measures developed in application of European Union Directives
and by national laws.
These marketable certificates are issued, over a period of several years, by the
competent local authorities to companies that carry out directly or indirectly
initiatives/projects to improve energy efficiency.
At the end of the period, obliged companies are required to present certificates
corresponding to their obligatory energy savings.
Mandatory by law.
The Group currently holds energy efficiency
certificates in Italy and Spain where the
obliged companies are, respectively,
electricity distribution and sale companies.
Guarantees of
origin (GoOs)
This European scheme has the objective to encourage use of energy produced from
renewable sources.
These certificates are issued by the competent local authorities to renewable
generation plants that meet specific standards. They are marketable and traded, also
separately from the electricity to which they refer, during their term of validity until
they are cancelled by the issuer at the request of the user of the certificates.
This mechanism currently affects the Group
Italian and Spanish sale companies that have
an obligation to surrender a certain volume
of GoOs depending on the level of sales to
customers.
Renewable
Energy
Certificates
(RECs)
These certificates are granted in countries outside Europe to renewable energy
generation companies to prove that consumed electricity has been generated in a
renewable way.
The functioning of this scheme is analogous to European GoOs.
This mechanism is voluntary and currently
affects some Group companies in North and
Latin America.
(78) European Emissions Trading System.
Notes to the consolidated financial statements
445
58.2 Accounting policies
For the purposes of accounting for charges arising from
such regulatory requirements, the Group uses the “net li-
ability approach”.
Under this accounting policy:
• any environmental certificates received free of charge
and those self-produced as a result of Group’s oper-
ations that will be used for compliance purposes are
recognized at nominal value (nil);
• charges incurred for obtaining (in the market or in
some other transaction for consideration) any missing
certificates to fulfil compliance requirements for the
reporting period are recognized through profit or loss
under other operating costs, as they represent “system
charges” consequent to compliance with a regulatory
requirement;
• if the number of environmental certificates available at
the reporting date is not sufficient to fulfill the related
obligation (a certificate “deficit”), a provision is accrued
under “provisions for risks and charges”. Conversely,
any “surplus” of certificates purchased at the reporting
date is recognized in “inventories” in accordance with
the general principles referred to in note 2.2 “Material
accounting policies”.
Some types of environmental certificates accrue in pro-
portion to:
• electricity generated by plants that use renewable re-
sources (for example, guarantees of origin and renew-
able energy certificates);
• energy savings certified by the competent authority
(energy efficiency certificates).
In these cases, the right to obtain such certificates can be
Millions of euro
Charges for environmental certificates
System charges – Emissions allowances
System charges – Energy efficiency certificates
System charges – Guarantees of origin
Total
treated as a non-monetary government operating grant
and, as such, the Group recognizes that right at fair value
under “other non-current/current non-financial assets”.
When the certificates are credited to the ownership ac-
count, they are reclassified from other assets to invento-
ries.
The corresponding income is recognized under other op-
erating profit.
For Group companies involved in trading activities, envi-
ronmental certificates represent goods exchanged as part
of their normal business activity and, as such, the pur-
chased certificates are recognized under “services and
other materials”.
Revenue from the sale of such certificates is recognized
under “revenue”, with a corresponding decrease in inven-
tories.
Contracts for the purchase or sale of environmental cer-
tificates settled at a future date (for example, forward con-
tracts, etc.) that comply with the definition of derivative are
recognized and measured in accordance with the “own
use exemption”, at fair value through profit or loss, or with
hedge accounting rules based on specific circumstanc-
es. For further details, please see note 51 “Derivatives and
hedge accounting”.
58.3 Financial impact
Charges for environmental certificates
The following table reports system charges recognized by
obligated Group companies in respect of the certificates
necessary to meet compliance obligations for the year
based on national and supranational regulations.
2023
2022
Change
2,038
244
321
2,603
2,216
182
112
2,510
(178)
62
209
93
-8.0%
34.1%
-
3.7%
The increase in costs for environmental certificates com-
pared with the previous year is mainly attributable to the
increase in charges recognized for guarantees of origin
by Enel Energia and the Endesa Group, which reflects the
increase in the quantity of green energy sold to customers
and the prices of those certificates.
This effect was partially offset by a decrease in charges for
emissions allowances, essentially in Italy, mainly connected
with a decline in the quantity of electricity produced from
fossil sources.
446 Integrated Annual Report 2023
The following table reports the quantities of environmental
certificates used by Group companies to meet compliance
obligations under national and supranational regulations.
2023
2022
2023
2022
2023
2022
Emissions allowances
(thousands of metric tons)
Guarantees of origin
(GWh)
Energy efficiency certificates
(TOE)
Opening balance at January 1
34,494
28,350
Self-produced certificates
Purchases of certificates
Sales of certificates
Certificates delivered for compliance(1)
Closing balance at December 31
-
34,699
(2,500)
(35,456)
31,237
-
32,925
-
(26,781)
34,494
20,565
24,845
28,362
(1,464)
(53,075)
19,233
11,417
29,540
20,316
-
(40,708)
20,565
416,174
257,940
-
-
925,187
678,808
-
(863,526)
477,835
-
(520,574)
416,174
(1) Certificates delivered in 2023 and 2022 regard compliance for previous years, in line with the time limits envisaged in the applicable regulations.
Provisions for environmental certificates
Provisions for risks and charges for environmental certifi-
cates include charges in respect of the certificate shortfall
for fulfillment of compliance obligations for the year under
national and supranational regulations.
Millions of euro
Provisions for risk and charges for environmental certificates – current portion
Emissions allowances
Energy efficiency certificates
Guarantees of origin
Total
at Dec. 31, 2023
at Dec. 31, 2022
33
3
214
250
209
-
83
292
The reduction in provisions for risks and charges (€42 mil-
lion) is attributable to the decline in the provision for emis-
sions allowances recognized by the Endesa Group, partial-
ly offset by an increase in the provision for guarantees of
origin recognized by Enel Energia.
Changes in provisions for risks and charges for environ-
mental certificates in 2023 are detailed below.
Millions of euro
Provisions
Uses Other changes
at Dec. 31, 2022
at Dec. 31, 2023
Provisions for risk and charges for environmental
certificates – current portion
Emissions allowances
Energy efficiency certificates
Guarantees of origin
Total
209
-
83
292
33
2
206
241
(209)
-
(104)
(313)
-
1
29
30
33
3
214
250
Notes to the consolidated financial statements
447
Income from government grants for environmental
certificates
The table reports non-monetary government grants for
environmental certificates accrued during the year and
certified by the competent authorities. They mainly regard
guarantees of origin accrued in proportion to electricity
generated by renewable resource plants.
Monetary government grants for energy efficiency certifi-
cates are paid by the Electricity Sector Equalization Fund
to e-distribuzione for energy efficiency certificates pur-
chased in the year.
Millions of euro
Grants for environmental certificates
Non-monetary grants – Guarantees of origin
Non-monetary grants – Other environmental certificates
Total non-monetary grants for environmental certificates
Monetary grants – Energy efficiency certificates
TOTAL
The increase of €126 million in grants for environmental
certificates compared with the previous year mainly reflects:
• an increase in non-monetary grants for guarantees of
origin registered in Spain (€44 million) and Italy (€19 mil-
lion), due to an increase in prices and the quantity of en-
ergy generated from renewable resources;
• an increase in monetary grants for energy efficiency cer-
tificates (€60 million) recognized by e-distribuzione, due
to an increase in the volume of certificates purchased in
2023 compared with the previous year.
Millions of euro
Non-monetary grants to be received for environmental certificates
Guarantees of origin
Other certificates
Total
2023
2022
Change
111
4
115
231
346
48
1
49
171
220
63
3
66
60
126
-
-
-
35.1%
57.3%
Non-monetary grants to be received for environmental
certificates
The following table reports environmental certificates ac-
crued at the end of the year but not yet accredited by
the competent authorities to the Group companies that
produced them. They are recognized under other current
non-financial assets and mainly regard guarantees of origin.
at Dec. 31, 2023
at Dec. 31, 2022
23
1
24
15
1
16
The increase of €8 million is attributable to an increase in
non-monetary grants to be received for guarantees of or-
igin recorded in Italy and Spain.
Other items
With regard to the impacts of environmental certificates
on the other items of the income statement and state-
ment of financial position, please see:
• note 11.a “Revenue from sales and services” for revenue
from the sale of environmental certificates;
• note 12.b “Services and other materials” for purchas-
es of environmental certificates not used to meet the
year’s compliance obligation;
• note 33 “Inventories” for inventories of certificates not
used to meet the year’s compliance obligation.
448 Integrated Annual Report 2023
59. Future accounting standards
The following provides a list of accounting standards,
amendments and interpretations that will take effect for
the Group after December 31, 2023.
• “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 cur-
rent or non-current, specifying the meaning of right
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 the exercise
of the right to defer settlement of a liability;
– that the right to defer exists if and only if the entity
satisfies the terms of the liability at the end of the
reporting period, even if the creditor does not verify
compliance with those terms until later; and
– that settlement regards the transfer to the coun-
terparty of cash, equity instruments, other assets or
services.
The amendments take effect for annual periods begin-
ning on or after January 1, 2024.(79)
• “Amendments to IAS 1 – Non-current Liabilities with
Covenants”, issued in October 2022. IAS 1 requires clas-
sification of liabilities as non-current only where an en-
tity has a right to defer settlement in the 12 months fol-
lowing the reporting date. Nevertheless, the right to do
so is often subject to compliance with covenants. The
amendments of the standard improve disclosure when
the right to defer settlement of a liability for at least 12
months is subject to compliance with covenants and
specify that the classification of the liability as current
or non-current at the reporting date is not affected by
covenants that must be complied with subsequent to
the reporting date.
The amendments take effect for annual periods begin-
ning on or after January 1, 2024.
• “Amendments to IFRS 10 and IAS 28 – Sale or Contri-
bution of Assets between an Investor and its Associ-
ate or Joint Venture”, issued in September 2014. The
amendments clarify the accounting treatment for sales
or contribution of assets between an investor and its
associates or joint ventures. They confirm that the ac-
counting treatment 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.
• “Amendments to IFRS 16 – Lease Liability in a Sale and
Leaseback”, issued in September 2022. The amend-
ments require the seller-lessee to measure the right-
of-use asset arising from a sale and leaseback trans-
action in proportion to the previous carrying amount of
the asset involved in the arrangement and in line with
the retained right-of-use. Consequently, the seller-les-
see will be allowed to recognize only the amount of any
capital gain or loss relating to the rights transferred to
the buyer-lessor.
The amendments do not prescribe specific measure-
ment requirements for liabilities deriving from a lease-
back. However, they include examples that illustrate the
initial and subsequent measurement of the liability by
including variable payments that do not depend on an
index or a rate. This representation is a departure from
the general accounting model required by IFRS 16, in
which variable payments that do not depend on an in-
dex or a rate are recognized through profit or loss in the
period in which the event or condition that determines
these payments occurs. In this regard, the seller-lessee
will have to develop and apply an accounting policy to
determine the lease payments such that any amount of
retained right-of-use gain or loss is not recognized.
The amendments take effect for annual periods begin-
ning January 1, 2024. In conformity with “IAS 8 - Ac-
counting Policies, Changes in Accounting Estimates
and Errors”, retrospective application is permitted for
sale and leaseback transactions entered into after the
date of initial application of IFRS 16.
• “Amendments to IAS 21 – The Effects of Changes in For-
eign Exchange Rates: Lack of Exchangeability”, issued
in August 2023. The amendments require the applica-
tion of a consistent approach in determining whether
a currency is exchangeable for another and, when it is
not, in determining the exchange rate to be used and
the disclosure to be provided.
The amendments will take effect, subject to endorse-
ment, for annual periods beginning January 1, 2025
(earlier application is permitted).
• “Amendments to IAS 7 and IFRS 7 – Supplier Finance
Arrangements”, issued in May 2023.
The amendments clarify the characteristics of supplier
finance arrangements and require additional disclo-
sures concerning these agreements in order to assist
users of the financial statements in understanding their
related impacts on an entity’s liabilities, cash flows and
exposure to liquidity risk.
The IASB granted a transitional exemption by requiring
neither comparative information in the first year of ap-
(79) In 2020 an amendment was issued to postpone the date of entry into force from January 1, 2023 to January 1, 2024.
Notes to the consolidated financial statements
449
plication nor disclosure of specific opening balances.
Furthermore, the information requested is applicable
only for the first year of application. Accordingly, con-
sidering that the amendments will take effect, subject
to endorsement, for annual reporting periods begin-
ning on or after January 1, 2024, the new disclosures
must be provided no earlier than the annual financial
report at December 31, 2024.
The Group is assessing the potential impact of the future
application of the new provisions.
60. Events after the reporting period
Finalized the agreement to sell a geothermal and solar
portfolio in the United States to Ormat
On January 4, 2024, Enel SpA, acting through its whol-
ly-owned subsidiary Enel Green Power North America Inc.
(EGPNA), closed an agreement with Ormat Technologies
Inc. on the sale of a renewable asset portfolio in the United
States for a total of $271 million, equivalent to €250 mil-
lion, subject to customary transactional adjustments. The
assets sold include EGPNA’s entire geothermal portfolio as
well as a number of small solar plants, with a total capacity
of about 150 MW of operating plants.
The overall transaction, which was closed following the
fulfillment of a number of conditions, had a positive effect
on the Enel Group´s consolidated net debt of about €250
million, and a negative impact of around €30 million on
Group profit, which had already been recognized in 2023
as impairment losses in compliance with IFRS 5.
Enel issues a dual-tranche €1.75 billion sustainability-
linked bond in the Eurobond market
On January 16, 2024, Enel Finance International NV, a fi-
nance company controlled by Enel SpA, issued a du-
al-tranche sustainability-linked bond for
institutional
investors in the Eurobond market in the total amount of
€1.75 billion.
The new issue envisages the use of two sustainability Key
Performance Indicators for each tranche, illustrated in the
Sustainability-Linked Financing Framework, last updated
in January 2024.
The issue is structured in the following two tranches:
• €750 million at a fixed rate of 3.375%, with settlement
date set on January 23, 2024, maturing July 23, 2028;
• €1,000 million at a fixed rate of 3.875%, with settle-
ment date set on January 23, 2024, maturing January
23, 2035.
Enel issues a new €900 million perpetual hybrid bond
with coupon at 4.75%
On February 20, 2024, Enel SpA issued a non-convertible,
subordinated perpetual hybrid bond for institutional in-
vestors on the European market, denominated in euros,
with an aggregate principal amount of €900 million.
The transaction refinanced the €900 million equity-ac-
counted perpetual hybrid bond with first call date in Feb-
ruary 2025 and a 3.5% coupon.
The bond has no fixed maturity, and is due and payable
only in the event of the winding up or liquidation of the
Company. An annual fixed coupon of 4.75% will be paid
until (but excluding) the first reset date of May 27, 2029,
which is the last day for the first optional redemption.
Partnership with Sosteneo to develop battery and open-
cycle plant projects in Italy
On March 1, 2024, Enel SpA, acting through its subsidiary
Enel Italia SpA, signed an agreement with Sosteneo Fund
1 HoldCo Sàrl, for the acquisition by the latter of 49% of
the share capital of Enel Libra Flexsys Srl, a company whol-
ly-owned by Enel Italia and established for the implemen-
tation and operation of a portfolio of Battery Energy Stor-
age Systems (BESS) and open-cycle gas turbines (OCGT).
The agreement provides for payment by Sosteneo HoldCo
of approximately €1.1 billion. The price is also subject to an
adjustment mechanism customary for this type of trans-
action. The enterprise value on a 100% basis of Enel Libra
Flexsys recognized in the agreement is equal to around
€2.5 billion once the investment cycle foreseen by the
project is completed.
The transaction is expected to generate upon closing a
positive impact of about €1.1 billion on the Enel Group’s
consolidated net debt, while it is set to bear no impact on
the Group’s performance, as Enel will continue to maintain
control and fully consolidate Enel Libra Flexsys upon the
closing of the transaction.
Agreement with A2A on electricity distribution
operations in a number of municipalities in Lombardy
On March 9, 2024, the Enel subsidiary e-distribuzione SpA
signed an agreement with A2A SpA for the sale to the lat-
ter of 90% of the capital of a newly incorporated vehicle
to which electricity distribution operations in a number of
municipalities of the provinces of Milan and Brescia will be
transferred.
The agreement provides for A2A to pay about €1.2 billion,
based on an enterprise value (for 100% of the company) of
around €1.35 billion. The price, which will be paid at clos-
ing, is subject to an adjustment mechanism customary for
these kinds of transactions.
Upon completion of the transaction, e-distribuzione will
retain a 10% stake in NewCo’s capital to support the start-
up phase of the company, and which will be subject to a
put and call option mechanism that can be triggered start-
ing from the first year from completion of the transaction.
450 Integrated Annual Report 2023
Furthermore, specific agreements between the parties
provide for e-distribuzione to guarantee supporting activ-
ities to ensure continuity of service.
The transaction is expected to generate a positive ef-
fect on the Enel Group’s consolidated net debt in 2024 of
about €1.2 billion and a positive impact on Group reported
profit for 2024 of about €1 billion. If, before the closing of
the transaction, a precise specification of further activities
that e-distribuzione may carry out for NewCo is reached
and such activities are reflected in specific agreements,
thereby forming an industrial Stewardship relationship, the
aforementioned performance effects could also be recog-
nized on the Group’s ordinary results.
The closing of the transaction, which is expected to occur
by December 31, 2024, is subject to a number of condi-
tions, including receipt of antitrust clearance, the suc-
cessful completion of the golden power procedure by the
Presidency of Italy’s Council of Ministers and receipt of au-
thorization to transfer the electricity distribution service
concessions to NewCo.
61. Fees of the Audit Firm pursuant to
Article 149-duodecies of the CONSOB
Issuers Regulation
Fees pertaining to 2023 paid by Enel SpA and its subsid-
iaries at December 31, 2023 to the Audit Firm and entities
belonging to its network for services are summarized in
the following table, pursuant to the provisions of Article
149-duodecies of the CONSOB Issuers Regulation.
Millions of euro
Type of service
Enel SpA
Auditing
Certification services
Other services
Total
Enel SpA subsidiaries
Auditing
Certification services
Other services
Total
TOTAL
Entity providing the service
of which:
- KPMG SpA
- entities of the KPMG network
of which:
- KPMG SpA
- entities of the KPMG network
of which:
- KPMG SpA
- entities of the KPMG network
of which:
- KPMG SpA
- entities of the KPMG network
of which:
- KPMG SpA
- entities of the KPMG network
of which:
- KPMG SpA
- entities of the KPMG network
Fees
0.9
-
1.8
-
-
-
2.7
4.6
9.5
1.3
1.2
-
-
16.6
19.3
Notes to the consolidated financial statements
451
Declaration of the Chief Executive Officer and the officer in charge of
financial reporting of the Enel Group at December 31, 2023, 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, 2023:
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
other accounting records;
c. provide a true and fair representation of the financial
position, financial performance and cash flows of the
issuer and the companies included in the consolida-
tion scope.
4. Finally, we certify that the Report on Operations, ac-
companied by the consolidated financial statements of
the Enel Group at December 31, 2023, contains a re-
liable analysis of operations and performance, as well as
the situation of the issuer and the companies included
in the consolidation scope, together with a description
of the main risks and uncertainties to which they are
exposed.
1. The undersigned Flavio Cattaneo and Stefano De Ange-
lis, in their respective capacities as Chief Executive Of-
ficer and officer in charge of financial reporting of Enel
SpA, hereby certify, taking account of the provisions of
Article 154-bis, paragraphs 3 and 4, of Legislative De-
cree 58 of February 24, 1998:
a. the appropriateness with respect to the characteristi-
cs of the Enel Group and
b. the effective adoption of the administrative and ac-
counting procedures for the preparation of the con-
solidated financial statements of the Enel Group in
the period between January 1, 2023 and December
31, 2023.
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
assessment was carried out on the basis of the gui-
delines set out in the “Internal Controls - Integrated
Framework” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO);
b. the assessment of the internal control system for fi-
nancial reporting did not identify any material issues.
Rome, March 21, 2024
Flavio Cattaneo
Chief Executive Officer of Enel SpA
Stefano De Angelis
Officer in charge of financial
reporting of Enel SpA
452 Integrated Annual Report 2023
REPORTS
Report of the Board of Statutory Auditors
Reports
453
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’ MEETING
OF ENEL SpA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2023
(pursuant to Article 153 of Legislative Decree 58/1998)
Shareholders,
The current Board of Statutory Auditors of Enel SpA (hereinafter also “Enel” or the
“Company”) was appointed by the Shareholders’ Meeting of May 19, 2022.
During the year ended December 31, 2023 we performed the oversight activities
envisaged by law. 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 has adopted;
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 issues
that would merit reporting here.
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;
454 Integrated Annual Report 2023
1
• on a quarterly basis, we received adequate information from the Chief Executive
Officer, as well as through our participation in the meetings of the Board of Directors
of Enel, on activities performed, general developments in operations and the outlook,
and on transactions with the most significant impact on performance or the financial
position carried out by the Company and its subsidiaries. The actions approved and
implemented appeared to be 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 2023 (in the section “Significant events in 2023”);
• 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
2023 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. On the basis of our oversight activities, we found that 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 2023. All
transactions with related parties reported in the notes to the separate financial
statements for 2023 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 2023
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 2023
(hereinafter also the “IFRS-EU”), as well as the provisions of Legislative Decree 38 of
February 28, 2005 and its related implementing measures, as it did the previous year.
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The Company’s separate financial statements for 2023 have been prepared on a
going-concern basis. 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 2023, which
as indicated in the notes did not have a significant impact in the year under review;
•
the separate financial statements for 2023 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 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 2023 on the basis of international accounting standards (IFRS-
EU) and the provisions of Legislative Decree 38 of February 28, 2005 and its related
implementing measures. The 2023 consolidated financial statements of the Enel
Group are also prepared on a going-concern basis. 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 2023, 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 as amended (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), in accordance
with the ESEF taxonomy issued annually by ESMA, in order to facilitate the
accessibility, analysis and comparability of the annual financial reports;
456 Integrated Annual Report 2023
3
•
the consolidated financial statements for 2023 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 2023 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 supplemented with the Public
Statement of October 25, 2023, 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 2024, i.e. prior to the date of approval of the financial
statements for 2023;
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• we examined the Board of Directors’ proposal for the allocation of net profit for 2023
and the distribution of available reserves and have no comments in this regard;
• we note that the Board of Directors of the Company certified, following appropriate
checks by the Control and Risk Committee and the Board of Statutory Auditors in
March 2024, that as at the date on which the 2023 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, pursuant to the aforementioned Article 15 of the Market Rules, the
capacity of the administrative-accounting systems of the subsidiaries referred to in
the previous bullet point to regularly send management and the audit firm KPMG SpA
the performance and financial data necessary for the preparation of the consolidated
financial statements of the Enel Group, finding no adverse issues;
• 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 the competent 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.
Taking account of the changes in its organizational arrangements, implemented most
recently in 2023 and the early months of 2024, the Enel Group, consistent with the
vision of the newly appointed top management, has adopted a matrix-based
organizational structure, structured into:
(i)
four global Divisions, which are charged with developing, building, operating
and maintaining assets, conducting trading activities and developing and
managing the portfolio of products and services in the various geographical
areas in which the Group operates. The four global Divisions are divided into:
Enel Green Power and Thermal Generation, Global Energy and Commodity
Management & Chief Pricing Officer, Enel Grids and Innovability and Enel X
Global Retail;
(ii)
two Countries (Italy and Iberia) and a Region (Rest of the World), which, in
each geographical area in which the Group operates, is charged with:
458 Integrated Annual Report 2023
5
-
-
-
-
-
achieving economic-financial results, optimizing the balance between
customers and generation and ensuring long-term value maximization,
as well as the adoption of the highest safety and environmental
standards;
managing relationships with institutions, regulators, media and other
stakeholders;
performing staff and service activities in support of the business lines
present at country level, maximizing efficiency and quality;
managing the integration between the business lines present in their
geographical area;
managing stewardship relationships, coordinating with all the competent
structures involved;
(iii)
a global service function (Global Services), which is charged with the (i)
integrated management of all Group activities connected with the development
and governance of digital solutions, purchasing and strategy, customer
processes and management models, as well as insourcing processes and (ii)
managing the real estate portfolio, maximizing its value, and the related
general services;
(iv)
six Holding Company Staff Functions, which are charged with the strategic
direction, coordination and control activities of the entire Group, broken down
as follows: Administration, Finance and Control, Personnel and Organization,
External Relations, Legal, Corporate, Regulatory and Antitrust Affairs, Audit
and Security;
(v)
a CEO Office and Strategy, which is charged with providing support to the CEO
in defining and directing the Group’s strategic decisions and defining the
medium-long term strategic positioning for the entire Group, developing
strategic scenarios that also consider the effects of climate change.
We found no issues concerning the adequacy of the organizational system described
above in supporting the strategic development of the Company and the Enel Group or
the consistency of that system with control requirements;
• we met 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 from the exchange
of information that would require mention 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
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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 found 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
2023 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 2023;
• 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
Company’s 2023 separate financial statements) certifying (i) the appropriateness with
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460 Integrated Annual Report 2023
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 2023
of the Enel Group;
• we monitored the adequacy and effectiveness of the internal control system, primarily
through systematic 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, there are no reasons to doubt the adequacy and effectiveness of
the internal control and risk management system. In February 2024, the Board of
Directors of the Company expressed an analogous assessment of the situation and
also noted, in November 2023, that the main risks associated with the strategic
targets set out in the 2024-2026 Business Plan were compatible with the management
of the Company in a manner consistent with those targets;
•
in 2023 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;
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• 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
governance system can be found in the report on corporate governance and ownership
structure for 2023.
In June 2023, the Board of Statutory Auditors verified that the Board of Directors –
following its election by the Shareholders’ Meeting of May 10, 2023 - 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 2023.
With regard to the so-called “self-assessment” of the independence of its members,
the Board of Statutory Auditors, in March 2023 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 2023 and during the first two months of 2024, 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 2023 and the findings of that review are described in detail in
the report on corporate governance and ownership structure for 2023.
•
during 2023, the Board of Statutory Auditors also participated in an induction
program, characterized by specific studies to update directors and statutory auditors
on the corporate governance of the Company and the Enel Group, the structure and
operation of the electrical system in general and the activities of the four global
Divisions (Enel Green Power and Thermal Generation, Enel Grids, Global Energy and
Commodity Management & Chief Pricing Officer, Enel X Global Retail) and the “People
and Organization” Holding Company Function;
462 Integrated Annual Report 2023
9
• 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 statements for 2023 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 liability for companies for certain
types of offences committed by its directors, managers or employees on behalf of or
to the benefit of the company – since July 2002 Enel has adopted a compliance
program consisting of a “general part” and various “special parts” concerning the
difference offences specified by Legislative Decree 231/2001 that the program is
intended to prevent. For a description of the manner in which the model has been
adapted to the characteristics of the various Italian companies of the Group, as well
as a description of the purposes of the “Enel Global Compliance Program” for the
Group’s foreign companies, please see the report on corporate governance and
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ownership structure for 2023. The structure that monitors the operation and
compliance with the program and is responsible for updating it is a collegial body. This
body, whose current members were appointed in July 2023, 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 2023 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 2023, the Board of Statutory Auditors issued the following opinions:
- a favorable opinion (at the meeting of February 8, 2023) on the 2023 Audit Plan,
in accordance with the provisions of Recommendation 33, letter c) of the
Corporate Governance Code;
- a favorable opinion (at the meeting of June 12, 2023) on the appointment of the
new officer in charge of financial reporting of Enel, in accordance with the
provisions of Article 154-bis, paragraph 1, of the Consolidated Law on Financial
Intermediation and Article 20.5 of the Company’s articles of association;
- a favorable opinion (at the meeting of July 5, 2023), pursuant to Article 2389,
paragraph 3, of the Italian Civil Code, on the remuneration to be paid to the
members of the various committees established within the Board of Directors,
following the election of the latter by the Shareholders’ Meeting of May 10, 2023,
taking account of the provisions in this regard of Enel’s remuneration policy for
2023, approved with a binding vote by the Shareholders’ Meeting itself;
- a favorable opinion (at the meeting of July 5, 2023) on the attendance fee to be
paid to the Magistrate of the State Audit Court delegated to control Enel’s financial
management for participation in the meetings of the corporate bodies;
- a favorable opinion (at the meeting of September 20, 2023), pursuant to Article
2389, paragraph 3, of the Italian Civil Code, on the decisions concerning the
remuneration and other terms and conditions of employment of top management
appointed following the election of the Board of Directors by the Shareholders’
Meeting of May 10, 2023, taking account of the provisions in this regard of Enel’s
remuneration policy for 2023, approved with a binding vote by the Shareholders’
Meeting itself;
• 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 2023 for their respective positions and any compensation
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464 Integrated Annual Report 2023
instruments awarded to them is contained in the second section of the Report on
Remuneration Policy for 2024 and Remuneration Paid in 2023 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 11, 2024, 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 (the “advisor”).
In addition, the second section of the Remuneration Report contains, in compliance
with the applicable CONSOB regulations, specific disclosures on the remuneration
received in 2023 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 2024 – 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
(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.
In addition, during the preparation of the remuneration policy for 2024, 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 by the advisor with
reference to two benchmarks:
• as a benchmark external to Enel, the remuneration of the boards of statutory
auditors reported in the documentation published on the occasion of 2023
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shareholders’ meetings by issuers belonging to a peer group composed of
companies belonging the FTSE MIB index (1) with a similarly complex business
and similar market size and ownership structure to Enel.
• as a benchmark internal to Enel, the remuneration paid to the members of the
Board of Directors of Enel (excluding the Chairman and the Chief Executive Officer)
in proportion to the number of meetings held.
As regards the external benchmark, the advisor first noted that, on the basis of the
data as at December 31, 2022, Enel lies at the extreme upper bound of the size class
compared with the peer group, as it significantly exceeds the ninth decile in terms of
capitalization and turnover and is between the third quartile and ninth decile in terms
of number of employees. At the same time, the analysis found that, compared with
the peer group, the remuneration of the members of the Enel Board of Statutory
Auditors was instead at the benchmark median for the Chairman and slightly above
the median for the other standing Auditors.
As regards the internal benchmark, the advisor conducted a comparison between the
average remuneration per meeting paid to the members of the Board of Statutory
Auditors and that paid to the members of the Board of Directors of the Company
(excluding the Chairman and the Chief Executive Officer), taking into account all
meetings in which they respectively participate. This analysis found a significant
disparity between the remuneration of the members of the two bodies. The average
remuneration per meeting of the directors is more than three times greater than that
of the Chairman of the Board of Statutory Auditors and nearly four times that of the
other standing members of the Board of Statutory Auditors.
The Board of Statutory Auditors’ oversight activity in 2023 was carried out in 24 meetings
and with participation in the 15 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 14 meetings of the Control and Risk Committee (held jointly with the
Board of Statutory Auditors), in the 14 meetings of the Nomination and Compensation
Committee, in the 6 meetings of the Related Parties Committee and in the 7 meetings of
the Corporate Governance and Sustainability Committee. The delegated magistrate of the
(1) The peer group consists of the following 18 companies: A2A, Assicurazioni Generali, Banco BPM,
BPER Banca, Eni, Hera, Italgas Leonardo, Mediobanca, Nexi, Pirelli, Poste Italiane, Prysmian,
Saipem, Snam, Telecom Italia, Terna and Unicredit.
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466 Integrated Annual Report 2023
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.
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, 2023 in conformity with the
proposals of the Board of Directors.
Rome, April 19, 2024
The Board of Auditors
____________________
Barbara Tadolini – Chairman
____________________
Luigi Borré – Auditor
____________________
Maura Campra – Auditor
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Report of the Audit Firm
468 Integrated Annual Report 2023
KPMG S.p.A.
Revisione e organizzazione contabile
Via Curtatone, 3
00185 ROMA RM
Telefono +39 06 80961.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report pursuant to article 14 of Legislative
decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no.
537 of 16 April 2014
To the shareholders of
Enel S.p.A.
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of the Enel Group (the “group”), which comprise
the statement of financial position as at 31 December 2023, the income statement and the statements of
comprehensive income, changes in equity and cash flows for the year then ended and notes thereto,
which include material information on the accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the financial position of
the Enel Group as at 31 December 2023 and of its financial performance and cash flows for the year
then ended in accordance with the International Financial Reporting Standards endorsed by the
European Union and the Italian regulations implementing article 9 of Legislative decree no. 38/05.
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit
of the consolidated financial statements” section of our report. We are independent of Enel S.p.A. (the
“parent”) in accordance with the ethics and independence rules and standards applicable in Italy to audits
of financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
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Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
Reports
469
Enel Group
Independent auditors’ report
31 December 2023
Recognition of revenue from the supply of electricity and gas not yet invoiced
Notes to the consolidated financial statements: notes 2.1 “Use of estimates and management judgement
– Revenue from contracts with customers”, 2.2 “Material accounting policies – Revenue from contracts
with customers”, 11.a “Revenue from sales and services” and 34 “Trade receivables”
Key audit matter
Audit procedures addressing the key audit matter
Revenue from the supply of electricity and gas to end
users is recognised at the time the electricity or gas is
delivered and includes, in addition to amounts invoiced
on the basis of periodic meter readings or on the
volumes notified by distributors and transporters, an
estimate of the electricity and gas delivered during the
year but not yet invoiced that is calculated also taking
account of any network losses. Revenue accrued
between the date of the last meter reading and the
year-end is based on estimates of the consumption of
individual customers, primarily determined on their
historical information, adjusted to reflect the climate
factors or other matters that may affect the estimated
consumption.
These estimates are very complex given the nature of
underlying assumptions.
Therefore, we believe that the recognition of revenue
from the supply of electricity and gas not yet invoiced is
a key audit matter.
Our audit procedures included:
•
understanding the process for the recognition of
revenue from the supply of electricity and gas not
yet invoiced;
•
•
•
•
•
assessing the design, implementation and
operating effectiveness of controls, including IT
controls, deemed material for the purposes of our
audit, including by involving our IT specialists;
performing substantive procedures on the
electricity and gas volumes considered in the
estimation;
checking the accuracy of the selling prices used in
the estimation;
comparing the estimates recognised in the
consolidated financial statements with the
subsequent actual figures;
assessing the appropriateness of the disclosures
provided in the notes about the revenue from the
supply of electricity and gas not yet invoiced.
Responsibilities of the parent’s directors and board of statutory auditors (“Collegio
Sindacale”) for the consolidated financial statements
The directors are responsible for the preparation of consolidated financial statements that give a true and
fair view in accordance with the International Financial Reporting Standards endorsed by the European
Union and the Italian regulations implementing article 9 of Legislative decree no. 38/05 and, within the
terms established by the Italian law, for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
The directors are responsible for assessing the group’s ability to continue as a going concern and for the
appropriate use of the going concern basis in the preparation of the consolidated financial statements
and for the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless
the directors believe that the conditions for liquidating the parent or ceasing operations exist, or have no
realistic alternative but to do so.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, the
group’s financial reporting process.
Auditors’ responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
2
470 Integrated Annual Report 2023
Enel Group
Independent auditors’ report
31 December 2023
guarantee that an audit conducted in accordance with ISA Italia will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the group’s internal control;
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors;
• conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditors’ report. However, future events or conditions may cause the group to cease
to continue as a going concern;
• evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation;
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance, identified at the appropriate level required by ISA
Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the ethics
and independence rules and standards applicable in Italy and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
the measures taken to eliminate those threats or the safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current year and are,
therefore, the key audit matters. We describe these matters in this report.
3
Reports
471
Enel Group
Independent auditors’ report
31 December 2023
Other information required by article 10 of Regulation (EU) no. 537/14
On 16 May 2019, the parent’s shareholders appointed us to perform the statutory audit of its separate
and consolidated financial statements as at and for the years ending from 31 December 2020 to 31
December 2028.
We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of
Regulation (EU) no. 537/14 and that we remained independent of the parent in conducting the statutory
audit.
We confirm that the opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the Collegio Sindacale, in its capacity as audit committee, prepared in accordance
with article 11 of the Regulation mentioned above.
Report on other legal and regulatory requirements
Opinion on the compliance with the provisions of Commission Delegated Regulation
(EU) 2019/815
The parent’s directors are responsible for the application of the provisions of Commission Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single
electronic reporting format (ESEF) to the consolidated financial statements at 31 December 2023 to be
included in the annual financial report.
We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express
an opinion on the compliance of the consolidated financial statements with Commission Delegated
Regulation (EU) 2019/815.
In our opinion, the consolidated financial statements at 31 December 2023 have been prepared in
XHTML format and have been marked up, in all material respects, in compliance with the provisions of
Commission Delegated Regulation (EU) 2019/815.
Due to certain technical limitations, some information included in the notes to the consolidated financial
statements when extracted from the XHTML format to an XBRL instance may not be reproduced in an
identical manner with respect to the corresponding information presented in the consolidated financial
statements in XHTML format.
Opinion pursuant to article 14.2.e) of Legislative decree no. 39/10 and article 123-bis.4 of
Legislative decree no. 58/98
The parent’s directors are responsible for the preparation of the group’s reports on operation and on
corporate governance and ownership structure at 31 December 2023 and for the consistency of such
reports with the related consolidated financial statements and their compliance with the applicable law.
We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to express
an opinion on the consistency of the report on operations and the specific information presented in the
report on corporate governance and ownership structure indicated by article 123-bis.4 of Legislative
decree no. 58/98 with the group’s consolidated financial statements at 31 December 2023 and their
compliance with the applicable law and to state whether we have identified material misstatements.
472 Integrated Annual Report 2023
4
Enel Group
Independent auditors’ report
31 December 2023
In our opinion, the report on operations and the specific information presented in the report on corporate
governance and ownership structure referred to above are consistent with the group’s consolidated
financial statements at 31 December 2023 and have been prepared in compliance with the applicable
law.
With reference to the above statement required by article 14.2.e) of Legislative decree no. 39/10, based
on our knowledge and understanding of the entity and its environment obtained through our audit, we
have nothing to report.
Statement pursuant to article 4 of the Consob regulation implementing Legislative
decree no. 254/16
The directors of Enel S.p.A. are responsible for the preparation of a consolidated non-financial statement
pursuant to Legislative decree no. 254/16. We have checked that the directors had approved such
consolidated non-financial statement. In accordance with article 3.10 of Legislative decree no. 254/16,
we attested the compliance of the consolidated non-financial statement separately.
Rome, 19 April 2024
KPMG S.p.A.
(signed on the original)
Davide Utili
Director of Audit
5
Reports
473
ATTACHMENTS
Subsidiaries, associates and other significant equity
investments of the Enel Group at December 31, 2023
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, 2023, pursuant to Article 2359 of the Ital-
ian 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, meth-
od 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
Enel Grids
End-user Markets
Enel X
e-Mobility
Services
Finance
474 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Parent
Enel SpA
Rome
IT
10,166,679,946
EUR
Holding
Enel SpA
100.00%
100.00%
Subsidiaries
25 Mile Creek Windfarm LLC Andover
25 Mile PPA LLC
Andover
25RoseFarms Holdings LLC
Andover
US
US
US
1
1
1
USD
USD
USD
Line-by-line
25RoseFarms
Holdings LLC
100.00%
100.00%
Line-by-line
EGP North America
PPA LLC
100.00%
100.00%
Line-by-line
Enel Green Power
25RoseFarms
Holdings LLC
Enel Green Power
Italia Srl
Enel Green Power
SpA
100.00%
100.00%
96.74%
3.26%
100.00%
3SUN Srl
Catania
IT
1,000,000
EUR
Held for sale
3SUN USA LLC
Andover
400 Manley Solar LLC
Boston
4814 Investments LLC
Andover
Ables Springs Solar LLC
Andover
Ables Springs Storage LLC
Andover
US
US
US
US
US
1
-
-
1
1
USD
USD
USD
USD
USD
Line-by-line
Enel North America
Inc.
100.00%
100.00%
Line-by-line
Enel X Project MP
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
Enel Kansas LLC
100.00%
100.00%
Abu Renewables India Private
Limited
Gurugram
IN
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
Ace High Solar Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Aced Renewables Hidden
Valley (RF) (Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Equity
Acefat AIE
Barcelona
ES
793,340
EUR
-
Adams Solar PV Project Two
(RF) (Pty) Ltd
Johannesburg
ZA
10,000,000
ZAR
Line-by-line
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
27.50%
Edistribución Redes
Digitales SLU
14.29%
10.02%
Enel Green Power
South Africa (Pty) Ltd
60.00%
60.00%
Adria Link Srl
Gorizia
IT
300,297
EUR
Equity
Enel Produzione SpA
50.00%
50.00%
Aferkat Wind Farm
Casablanca
MA
389,600
MAD
Line-by-line
Agassiz Beach LLC
Minneapolis
US
-
USD
Line-by-line
Agatos Green Power Trino Srl Rome
IT
10,000
EUR
Line-by-line
Aguillón 20 SA
Zaragoza
ES
2,682,000
EUR
Line-by-line
Enel Green Power
Morocco Sàrl
99.97%
99.97%
Chi Minnesota Wind
LLC
100.00%
100.00%
Enel Green Power
Solar Energy Srl
100.00%
100.00%
Enel Green Power
España SLU
51.00%
35.76%
Aidon Oy
Jyväskylä
FI
5,112,572
EUR
Equity
Gridspertise Srl
100.00%
50.00%
Alba Energia Ltda
Rio de Janeiro
BR
16,045,169
BRL
Line-by-line
Albany Solar LLC
Wilmington
US
-
USD
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Aurora Distributed
Solar LLC
100.00%
74.13%
Attachments
475
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Almyros Ape Single Member
PC
Maroussi
GR
20,001
EUR
Equity
Enel Green Power
Hellas Supply Single
Member SA
100.00%
50.00%
Alpe Adria Energia Srl
Udine
IT
900,000
EUR
Equity
Enel Produzione SpA
50.00%
50.00%
Alta Farms Azure Ranchland
Holdings LLC
Dover
US
100
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Alta Farms Wind Project
II LLC
Andover
US
1
USD
Line-by-line
25RoseFarms
Holdings LLC
100.00%
100.00%
Alvorada Energia SA
Niterói
BR
22,317,416
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Ampla Energia e Serviços SA
Rio de Janeiro
BR
4,438,230,387
BRL
Line-by-line
Enel Brasil SA
99.83%
82.13%
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
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Aquilla Wind Project LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Aragonesa de Actividades
Energéticas SAU
Teruel
ES
60,100
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Aranort Desarrollos SLU
Madrid
ES
3,010
EUR
Line-by-line
Aravalli Surya (Project 1)
Private Limited
Gurugram
IN
31,630,000
INR
Line-by-line
Arcadia Power Inc.
Washington DC
US
-
USD
-
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
India Private Limited
100.00%
100.00%
Enel X North America
Inc.
0.14%
0.14%
Arena Green Power 1 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Arena Green Power 2 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Arena Green Power 3 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Arena Green Power 4 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Arena Green Power 5 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Arena Power Solar 11 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 12 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 13 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 20 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 33 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 34 SLU
Madrid
ES
3,000
EUR
Line-by-line
Arena Power Solar 35 SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
476 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Arrow Head Energy Storage
Project LLC
Andover
Arrow Hills Solar Project
Andover
Asociación Nuclear Ascó-
Vandellós II AIE
Vandellós
US
US
ES
1
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
19,232,400
EUR
Proportional
Endesa Generación
SAU
85.41%
59.89%
Baylio Solar SLU
19.72%
Dehesa de los
Guadalupes Solar
SLU
14.93%
35.06%
Seguidores Solares
Planta 2 SLU
15.35%
Enel Colombia SA
ESP
100.00%
47.18%
Ateca Renovables SL
Madrid
ES
3,000
EUR
Equity
Atlántico Photovoltaic SAS
ESP
Barranquilla
CO
50,587,000
COP
Line-by-line
Atwater Solar LLC
Wilmington
US
Aurora Distributed Solar LLC Wilmington
US
Aurora Land Holdings LLC
Wilmington
US
Aurora Solar Holdings LLC
Wilmington
US
Aurora Wind Holdings LLC
Andover
Aurora Wind Project LLC
Andover
US
US
Autumn Hills LLC
Wilmington
US
Autumn Waltz Wind Project
LLC
Andover
US
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
-
-
-
-
-
1
-
1
USD
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
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
100,000,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
4,918,810,370
INR
875,350
INR
Equity
Equity
Enel Green Power
India Private Limited
51.00%
51.00%
Enel Green Power
India Private Limited
51.00%
51.00%
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
Azure Blue Jay Holdings LLC
Dover
US
100
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Azure Blue Jay Solar Holdings
LLC
Andover
Azure Sky Solar Project LLC
Andover
Azure Sky Wind Holdings LLC Andover
Azure Sky Wind Project LLC
Andover
Azure Sky Wind Storage LLC Andover
US
US
US
US
US
1
1
-
1
-
USD
USD
USD
USD
USD
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
AzureRanchII Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Attachments
477
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
AzureRanchII Wind Holdings
LLC
Andover
US
1
USD
Line-by-line
Baikal Enterprise SLU
Palma de Mallorca ES
3,006
EUR
Line-by-line
Baleares Energy SLU
Palma de Mallorca ES
4,509
EUR
Line-by-line
Enel Green Power
AzureRanchII Wind
Holdings LLC
100.00%
100.00%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Barnwell County Solar
Project LLC
Andover
US
-
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Baylio Solar SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Beacon Harbor Solar Project
LLC
Andover
US
Beaver Falls Water Power
Company
Wilmington
US
Beaver Valley Holdings LLC
Wilmington
US
1
-
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Beaver Valley
Holdings LLC
67.50%
67.50%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Bejaad Solar Plant
Casablanca
MA
10,000
MAD
Line-by-line
Enel Green Power
Morocco Sàrl
99.90%
99.90%
Belltail Solar Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Belomechetskaya WPS
Moscow
RU
3,010,000
RUB
Line-by-line
Betwa Renewable Energy
Private Limited
Gurgaon
IN
100,000
INR
Line-by-line
Enel Green Power
Rus Limited Liability
Company
100.00%
100.00%
Enel Green Power
India Private Limited
100.00%
100.00%
Bijou Hills Wind LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Bioenergy Casei Gerola Srl
Rome
IT
100,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Bison Meadows Storage
Project LLC
Andover
Bison Meadows Wind Project
LLC
Andover
Blair Solar I LLC
Andover
US
US
US
1
-
1
USD
USD
USD
Blanche BESS (Pty) Ltd
Sydney
AU
100
AUD
Blanche BESS Trust
Sydney
AU
100
AUD
Blue Jay Solar I LLC
Andover
Blue Jay Solar II LLC
Andover
Blue Star Wind Project LLC
Andover
US
US
US
1
1
1
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
Brick Road Solar
Holdings LLC
100.00%
100.00%
Equity
Equity
Enel Green Power
Blanche Holding
(Pty) Ltd
100.00%
50.00%
Enel Green Power
Blanche Holding Trust
100.00%
50.00%
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%
Bogotá ZE SAS
Bogotá
CO
1,189,706,920
COP
Equity
Colombia ZE SAS
100.00%
9.44%
Boitumelo Solar Power Plant
(RF) (Pty) Ltd
Gauteng
ZA
100
ZAR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
478 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Bold Elk Wind Limited
Partnership
Calgary
CA
100
CAD
Line-by-line
Bondia Energia Ltda
Niterói
BR
2,950,888
BRL
Line-by-line
Boone Stephens Solar I LLC
Andover
US
1
USD
Line-by-line
Bosa del Ebro SL
Zaragoza
ES
3,010
EUR
Line-by-line
Held by
% holding
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
Enel Brasil SA
100.00%
Group %
holding
100.00%
Enel Green Power
Desenvolvimento
Ltda
Brick Road Solar
Holdings LLC
82.27%
0.00%
100.00%
100.00%
Enel Green Power
España SLU
51.00%
35.76%
Bottom Grass Solar Project
LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Boujdour Wind Farm
Casablanca
MA
300,000
MAD
Bouldercombe Solar Farm
Trust
Sydney
AU
10
AUD
Bouldercombe Solar (Pty) Ltd Sydney
AU
100
AUD
Box Canyon Energy Storage
Project LLC
Andover
US
BP Hydro Finance
Partnership
Salt Lake City
US
Brandonville Solar I LLC
Andover
Bravo Dome Wind Project
LLC
Andover
US
US
1
-
1
1
USD
USD
USD
USD
Equity
Equity
Equity
Nareva Enel Green
Power Morocco SA
90.00%
45.00%
Enel Green Power
Bouldercombe Trust
100.00%
50.00%
Enel Green Power
Bouldercombe
Holding (Pty) Ltd
100.00%
50.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
24.08%
100.00%
Enel Kansas LLC
75.92%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Brazatortas 220 Renovables
SL
Madrid
ES
3,000
EUR
Equity
Baylio Solar SLU
16.98%
Furatena Solar 1 SLU
16.98%
23.81%
Brazoria West Solar Project
LLC
Andover
Brazos Flat Solar Project LLC Andover
Brick Road Solar Holdings
LLC
Andover
Bronco Hills Solar Project LLC Andover
Brush County Solar Project
LLC
Andover
Buck Canyon Wind Project
LLC
Andover
Buckshutem Solar I LLC
Andover
Buckshutem Solar II LLC
Andover
Buffalo Dunes Solar Project
LLC
Andover
Buffalo Dunes Wind Project
LLC
Topeka
US
US
US
US
US
US
US
US
US
US
-
-
1
1
-
1
1
1
1
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
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
Enel Kansas LLC
100.00%
100.00%
Line-by-line
EGPNA Development
Holdings LLC
75.00%
75.00%
Attachments
479
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Buffalo Jump LP
Alberta
CA
10
CAD
Line-by-line
Held by
% holding
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
Group %
holding
100.00%
Buffalo Spirit Wind Project
LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Bungala One Finco (Pty) Ltd
Sydney
AU
1,000
AUD
Bungala One Operation
Holding Trust
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
100
AUD
Sydney
AU
100
AUD
Sydney
AU
1,000
AUD
Sydney
AU
-
AUD
Sydney
AU
100
AUD
Sydney
AU
100
AUD
Sydney
AU
1,000
AUD
Bungala One Property Trust
Sydney
Bungala Two Finco (Pty) Ltd
Sydney
Bungala Two Operations
Holding (Pty) Ltd
Sydney
Bungala Two Operations
Holding Trust
Sydney
Bungala Two Operations
(Pty) Ltd
Sydney
Bungala Two Operations
Trust
Sydney
Bungala Two Property
Holding (Pty) Ltd
Bungala Two Property
Holding Trust
Sydney
Sydney
Bungala Two Property (Pty)
Ltd
Sydney
Bungala Two Property Trust
Sydney
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
-
-
-
-
-
-
-
-
-
1
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
AUD
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Burgundy Spruce Solar LP
Calgary
CA
100
CAD
Line-by-line
Johannesburg
ZA
100
ZAR
Line-by-line
Business Venture
Investments 1468 (Pty) Ltd
Butterfly Meadows Solar
Project LLC
Bungala One
Property Trust
100.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
50.00%
25.00%
Enel Green Power
Bungala (Pty) Ltd
51.00%
25.50%
Bungala One
Operations Holding
(Pty) Ltd
Bungala One
Operations Holding
(Pty) Ltd
100.00%
25.50%
100.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
51.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
50.00%
25.00%
Bungala One
Property Holding
(Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
100.00%
25.50%
100.00%
25.50%
Bungala Two Property
Trust
100.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
51.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
50.00%
25.00%
Bungala Two
Operations Holding
(Pty) Ltd
Bungala Two
Operations Holding
(Pty) Ltd
100.00%
25.50%
100.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
51.00%
25.50%
Enel Green Power
Bungala (Pty) Ltd
50.00%
25.00%
Bungala Two Property
Holding (Pty) Ltd
100.00%
25.50%
Bungala Two Property
Holding (Pty) Ltd
100.00%
25.50%
Enel Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
C&C Castelvetere Srl
Rome
IT
100,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
480 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
C&C Uno Energy Srl
Rome
IT
118,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Cactus Mesa Solar Project
LLC
Campos Promotores
Renovables SL
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Elche
ES
3,000
EUR
Equity
Enel Green Power
España SLU
25.30%
17.74%
Canastota Wind Power LLC
Andover
US
Caney River Wind Project
LLC
Overland Park
US
Canyon Top Energy Storage
Project LLC
Andover
US
Castle Rock Ridge Limited
Partnership
Alberta
CA
-
-
1
-
USD
USD
USD
CAD
Line-by-line
Fenner Wind
Holdings LLC
100.00%
100.00%
Equity
Rocky Caney Wind
LLC
100.00%
10.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Catalana d’Iniciatives SA in
liquidation
Barcelona
ES
30,862,800
EUR
-
Endesa SA
0.94%
0.66%
Cattle Drive Wind Project LLC Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Cdec - Sic Ltda
Santiago de Chile CL
709,783,206
CLP
-
Enel Green Power
Chile SA
6.00%
3.90%
Cedar Run Wind Project LLC Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Central Geradora
Fotovoltaica Bom Nome Ltda
Central Geradora
Fotovoltaica São Francisco
Ltda
Salvador
BR
4,979,739
BRL
Line-by-line
Niterói
BR
268,128,917
BRL
Line-by-line
Central Hidráulica Güejar-
Sierra SL
Granada
Central Térmica de Anllares
AIE
Madrid
ES
ES
364,213
EUR
595,000
EUR
Central Vuelta de Obligado
SA
Buenos Aires
AR
500,000
ARS
Centrales Nucleares Almaraz-
Trillo AIE
Madrid
Centrum Pre Vedu A Vyskum
Sro
Kalná Nad
Hronom
ES
SK
-
6,639
CES 2 Private Company
Athens
GR
501
EUR
EUR
EUR
CES 3 Private Company
Athens
GR
501
EUR
CES 4 Private Company
Athens
GR
501
EUR
CES 5 Private Company
Athens
GR
501
EUR
CES 6 Private Company
Athens
GR
501
EUR
CES 7 Private Company
Athens
GR
501
EUR
CES 8 Private Company
Athens
GR
501
EUR
Equity
Equity
-
Equity
Equity
-
-
-
-
-
-
-
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
0.00%
Enel X Brasil SA
100.00%
82.27%
Enel Green Power
España SLU
33.30%
23.35%
Endesa Generación
SAU
Enel Generación El
Chocón SA
Endesa Generación
SAU
33.33%
23.37%
33.20%
17.95%
24.18%
16.95%
Slovenské elektrárne
AS
100.00%
33.00%
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
Enel Green Power
Hellas Supply Single
Member SA
0.20%
0.10%
0.20%
0.10%
0.20%
0.10%
0.20%
0.10%
0.20%
0.10%
0.20%
0.10%
0.20%
0.10%
Attachments
481
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
CESI - Centro Elettrotecnico
Sperimentale Italiano
Giacinto Motta SpA
Milan
IT
8,550,000
EUR
Equity
Enel SpA
42.70%
42.70%
Champagne Storage LLC
Wilmington
US
Checkerboard Plains Solar
Project Limited Partnership
Calgary
CA
Cheyenne Ridge II Wind
Project LLC
Andover
Cheyenne Ridge Wind
Project LLC
Andover
US
US
Chi Black River LLC
Wilmington
US
Chi Minnesota Wind LLC
Wilmington
US
1
-
1
1
-
-
USD
Line-by-line
Enel Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
100.00%
100.00%
CAD
USD
USD
USD
USD
Line-by-line
Enel Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
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 Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Chi Operations Inc.
Andover
US
100
USD
Line-by-line
Chi Power Inc.
Naples
US
100
USD
Line-by-line
Chi Power Marketing Inc.
Wilmington
US
100
USD
Line-by-line
Chi West LLC
San Francisco
US
100
USD
Line-by-line
Chinango SAC
San Miguel
PE
295,249,298
SOL
Held for sale
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Generación
Perú SAA
80.00%
57.23%
Chisago Solar LLC
Wilmington
US
Chisholm View II Holding LLC Wilmington
US
Chisholm View Wind Project
II LLC
Wilmington
US
Chisholm View Wind Project
LLC
New York
US
-
-
-
-
USD
USD
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chisholm View II
Holding LLC
62.79%
62.79%
Equity
EGPNA REP Wind
Holdings LLC
100.00%
10.00%
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%
Cimarron Bend III HoldCo
LLC
Andover
Cimarron Bend Solar Project
LLC
Andover
US
US
Cimarron Bend Wind
Holdings I LLC
Wilmington
US
1
1
-
USD
USD
USD
Line-by-line
Enel Green Power
Cimarron Bend Wind
Holdings III LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Cimarron Bend Wind
Holdings II LLC
100.00%
100.00%
Cimarron Bend Wind
Holdings II LLC
Cimarron Bend Wind
Holdings III LLC
Dover
US
100
USD
Line-by-line
Cimarron Bend Wind
Holdings LLC
100.00%
100.00%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
482 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Cimarron Bend Wind
Holdings LLC
Wilmington
US
Cimarron Bend Wind Project
I LLC
Wilmington
US
Cimarron Bend Wind Project
II LLC
Wilmington
US
Cimarron Bend Wind Project
III LLC
Wilmington
US
Cinch Top Solar Project LLC
Andover
Cipher Solar Project LLC
Andover
CityPoste Payment Digital Srl
Mosciano
Sant’Angelo
Clear Fork Solar Project LLC
Andover
Clear Sky Wind Project LLC
Andover
Clinton Farms Battery Project
LLC
Andover
Clinton Farms Solar Project
LLC
Andover
Clinton Farms Wind Project
LLC
Andover
Cloudwalker Wind Project
LLC
Andover
US
US
IT
US
US
US
US
US
US
-
-
-
-
1
1
USD
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
EGPNA Preferred
Wind Holdings LLC
100.00%
100.00%
Line-by-line
Cimarron Bend Wind
Holdings I LLC
100.00%
100.00%
Line-by-line
Cimarron Bend Wind
Holdings I LLC
100.00%
100.00%
Line-by-line
Cimarron Bend Wind
Holdings III 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%
10,000
EUR
Equity
Mooney SpA
100.00%
50.00%
1
1
1
1
1
1
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 Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Cogein Sannio Srl
Rome
IT
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Cogeneración el Salto SL in
liquidation
Zaragoza
Cogenio Iberia SL
Madrid
Cogenio Srl
Rome
ES
ES
IT
36,061
EUR
2,874,622
EUR
Equity
Equity
Enel Green Power
España SLU
20.00%
14.02%
Endesa X Servicios
SLU
20.00%
14.02%
2,310,000
EUR
Equity
Enel X Italia Srl
20.00%
20.00%
Cohuna Solar Farm (Pty) Ltd
Sydney
AU
100
AUD
Cohuna Solar Farm Trust
Sydney
AU
1
AUD
Colombia ZE SAS
Bogotá
CO
11,872,499,000
COP
Equity
Equity
Equity
Enel Green Power
Cohuna Holdings
(Pty) Ltd
Enel Green Power
Cohuna Trust
100.00%
50.00%
100.00%
50.00%
Enel Colombia SA
ESP
20.00%
9.44%
Comanche Crest Ranch LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Comercializadora Eléctrica
de Cádiz SA
Cádiz
Compagnia Porto di
Civitavecchia SpA in
liquidation
Rome
ES
IT
600,000
EUR
Equity
Endesa SA
33.50%
23.49%
15,130,800
EUR
Equity
Enel Produzione SpA
24.34%
24.34%
Companhia Energética do
Ceará - Coelce
Compañía de Trasmisión del
Mercosur SA - CTM
Fortaleza
BR
1,282,346,886
BRL
Line-by-line
Enel Brasil SA
74.05%
60.92%
Buenos Aires
AR
2,025,191,313
ARS
Held for sale
Enel CIEN SA
25.85%
82.27%
Enel Brasil SA
74.15%
Enel SpA
0.00%
Attachments
483
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Compañía Energética
Veracruz SAC
Compañía Eólica Tierras
Altas SA
Compass Rose Solar Project
LLC
San Miguel
PE
37,721,314
SOL
Held for sale
Enel Perú SAC
100.00%
82.27%
Soria
ES
13,222,000
EUR
Equity
Compañía Eólica
Tierras Altas SA
Enel Green Power
España SLU
5.00%
35.63%
26.29%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Concert Srl
Rome
Concho Solar I LLC
Andover
Concord Vine Solar Project
LLC
Andover
IT
US
US
Consolidated Hydro
Southeast LLC
Wilmington
US
10,000
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
1
1
-
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 Green Power
North America Inc.
100.00%
100.00%
Consolidated Pumped
Storage Inc.
Wilmington
US
550,000
USD
Line-by-line
Conza Green Energy Srl
Rome
IT
73,000
EUR
Line-by-line
Enel Green Power
North America Inc.
81.83%
81.83%
Enel Green Power
Italia Srl
100.00%
100.00%
Copper Landing Solar
Project LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Corporación Empresarial de
Extremadura SA
Badajoz
Corporación Eólica de
Zaragoza SL
La Puebla de
Alfindén
Country Roads Solar Project
LLC
Andover
Cow Creek Wind Project LLC Andover
ES
ES
US
US
44,538,000
EUR
-
Endesa SA
1.01%
0.71%
271,652
EUR
Equity
Enel Green Power
España SLU
25.00%
17.53%
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Crédito Fácil Codensa SA
Compañía de Financiamiento
in liquidation
Bogotá
CO
32,000,000,000
COP
Equity
Colombia ZE SAS
0.00%
Enel Colombia SA
ESP
48.99%
23.12%
Enel X Colombia
SAS ESP
0.00%
Crockett Solar I LLC
Andover
Dairy Meadows Wind Project
LLC
Andover
Daisy Patch Solar Project LLC Andover
US
US
US
1
1
-
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%
Danax Energy (Pty) Ltd
Sandton
ZA
100
ZAR
Line-by-line
Dappled Colt Storage Project
Limited Partnership
Calgary
CA
Dauphin Solar I LLC
Andover
Daybreak Wind Project LLC
Andover
US
US
-
1
1
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
Enel Alberta Storage
Inc.
0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
CAD
Line-by-line
USD
USD
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Decimalfigure - Unipessoal
Ltda
Pego
PT
2,000
EUR
Equity
Tejo Energia
- Produção e
Distribuição de
Energia Eléctrica SA
100.00%
30.68%
484 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Dehesa de los Guadalupes
Solar SLU
Madrid
ES
3,000
EUR
Line-by-line
Dehesa PV Farm 03 SLU
Madrid
ES
3,000
EUR
Line-by-line
Dehesa PV Farm 04 SLU
Madrid
ES
3,000
EUR
Line-by-line
Derivex SA
Bogotá
CO
938,734,000
COP
-
Mexico City
MX
53,104,350
MXN
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
Enel Colombia SA
ESP
100.00%
70.12%
5.20%
2.46%
Enel Green Power
México S de RL de Cv
100.00%
Enel Services México
SA de Cv
0.00%
100.00%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rome
IT
451,878
EUR
-
Enel Produzione SpA
1.79%
1.79%
Desarrollo de Fuerzas
Renovables S de RL de Cv
Desert Willow Solar Project
LLC
DI.T.N.E. - Distretto
Tecnologico Nazionale
sull’Energia - Società
Consortile a Responsabilità
Limitata
Diamond Vista Holdings LLC Wilmington
US
Diamond Vista Solar Project
LLC
Andover
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Dispatch Renewable Energy
Societe Anonyme
Distretto Tecnologico Sicilia
Micro e Nano Sistemi Scarl
Distribuidora de Energía
Eléctrica del Bages SA
Heraklion, Crete
GR
740,000
EUR
Equity
Enel Green Power
Hellas SA
0.00%
0.00%
Catania
IT
628,978
EUR
-
3SUN Srl
5.56%
5.56%
Barcelona
ES
108,240
EUR
Line-by-line
Endesa SA
55.00%
Hidroeléctrica de
Catalunya SLU
45.00%
70.12%
Distribuidora Eléctrica del
Puerto de la Cruz SAU
Santa Cruz de
Tenerife
ES
12,621,210
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Distrilec Inversora SA
Buenos Aires
AR
497,612,021
ARS
Line-by-line
Enel Américas SA
51.50%
42.37%
Dodge Center Distributed
Solar LLC
Wilmington
US
-
USD
Line-by-line
Dolores Wind SA de Cv
Mexico City
MX
4,151,197,627
MXN
Line-by-line
Dominica Energía Limpia
SA de Cv
Mexico City
MX
2,070,600,646
MXN
Equity
Aurora Distributed
Solar LLC
100.00%
74.13%
Enel Green Power
México S de RL de Cv
1.00%
Enel Rinnovabile SA
de Cv
99.00%
100.00%
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
60.80%
20.00%
Dorset Ridge Wind Project
LLC
Andover
Dover Solar I LLC
Andover
Dragonfly Fields Solar Project
LLC
Andover
US
US
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
1
-
-
-
-
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Equity
Enel Kansas LLC
50.00%
50.00%
Equity
Drift Sand Wind
Holdings LLC
100.00%
50.00%
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
1,000,000
EUR
Line-by-line
Enel X Italia Srl
60.00%
60.00%
Attachments
485
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Earthly Reflections Solar
Project LLC
Andover
Eastern Rise Solar Project
LLC
Andover
US
US
Eastwood Solar LLC
Wilmington
US
Ebenezer Solar I LLC
Andover
US
1
1
-
1
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Ecosolar2 Private Company
Grevena
GR
1,000
EUR
-
Edgartown Depot Solar 1 LLC Boston
US
-
USD
Line-by-line
Enel Green Power
Hellas SA
0.10%
0.10%
Enel X MA Holdings
LLC
100.00%
100.00%
Edistribución Redes Digitales
SLU
Madrid
ES
1,204,540,060
EUR
Line-by-line
Endesa SA
100.00%
70.12%
e-distribuzione SpA
Rome
IT
2,600,000,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
EF Divesture LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Efficientya Srl
Bergamo
IT
100,000
EUR
Equity
Enel X Italia Srl
50.00%
50.00%
EGP Australia (Pty) Ltd
Sydney
AU
10,000
AUD
Equity
EGP BESS 1 (RF) (Pty) Ltd
Gauteng
ZA
1,000
ZAR
Line-by-line
EGP Bioenergy Srl
Rome
IT
1,000,000
EUR
Line-by-line
EGP fotovoltaica La Loma
SAS in liquidation
EGP Geronimo Holding
Company Inc.
Bogotá
CO
8,000,000
COP
Line-by-line
Wilmington
US
1,000
USD
Line-by-line
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Puglia Srl
100.00%
100.00%
Enel Colombia SA
ESP
100.00%
47.18%
Enel Green Power
North America Inc.
100.00%
100.00%
EGP GulfStar Solar PPA LLC
Andover
EGP HoldCo 1 LLC
Andover
EGP HoldCo 10 LLC
Andover
EGP HoldCo 11 LLC
Andover
EGP HoldCo 12 LLC
Andover
EGP HoldCo 13 LLC
Andover
EGP HoldCo 14 LLC
Andover
EGP HoldCo 15 LLC
Andover
EGP HoldCo 16 LLC
Andover
EGP HoldCo 17 LLC
Andover
US
US
US
US
US
US
US
US
US
US
1
-
-
-
-
-
-
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
EGP North America
PPA 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%
486 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGP HoldCo 18 LLC
Andover
EGP HoldCo 2 LLC
Andover
EGP HoldCo 3 LLC
Andover
EGP HoldCo 4 LLC
Andover
EGP HoldCo 5 LLC
Andover
EGP HoldCo 6 LLC
Andover
EGP HoldCo 7 LLC
Andover
EGP HoldCo 8 LLC
Andover
EGP HoldCo 9 LLC
Andover
US
US
US
US
US
US
US
US
US
-
-
-
-
-
-
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
EGP Magdalena Solar SA
de Cv
Mexico City
MX
1,258,077,873
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
99.50%
Enel Rinnovabile SA
de Cv
0.50%
100.00%
Enel Green Power
SpA
50.00%
50.00%
EGP Matimba NewCo 1 Srl
Rome
EGP Matimba NewCo 2 Srl
Rome
IT
IT
10,000
EUR
Equity
10,000
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
EGP Nevada Power LLC
Wilmington
US
EGP North America PPA LLC
Andover
US
-
1
USD
USD
Held for sale
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
EGP Sabaudia Srl
Rome
IT
1,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
EGP Salt Wells Solar LLC
Wilmington
US
EGP San Leandro Microgrid
I LLC
Wilmington
US
EGP Solar Services LLC
Andover
US
-
-
-
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 Kansas LLC
100.00%
100.00%
EGP Solar V SAU
EGP Solar VI SAU
San Salvador de
Jujuy
San Salvador de
Jujuy
AR
500,000
ARS
Line-by-line
AR
500,000
ARS
Line-by-line
Enel Green Power
Argentina
100.00%
82.27%
Enel Green Power
Argentina
100.00%
82.27%
EGP Stillwater Solar LLC
Wilmington
US
EGP Stillwater Solar PV II LLC Wilmington
US
-
1
USD
USD
Held for sale
Enel Stillwater LLC
100.00%
100.00%
Held for sale
Stillwater Woods Hill
Holdings LLC
100.00%
100.00%
EGP Terracina 01 Srl
Rome
EGP Terracina 02 Srl
Rome
IT
IT
1,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
1,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Attachments
487
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGP Timber Hills Project LLC
Los Angeles
US
-
USD
Line-by-line
EGPE Solar 2 SLU
Madrid
ES
3,000
EUR
Line-by-line
Padoma Wind Power
LLC
100.00%
100.00%
Enel Green Power
España SLU
100.00%
70.12%
EGPNA 2020 HoldCo 1 LLC
Andover
EGPNA 2020 HoldCo 10 LLC
Andover
EGPNA 2020 HoldCo 11 LLC
Andover
EGPNA 2020 HoldCo 12 LLC
Andover
EGPNA 2020 HoldCo 13 LLC
Andover
EGPNA 2020 HoldCo 14 LLC
Andover
EGPNA 2020 HoldCo 15 LLC
Andover
EGPNA 2020 HoldCo 16 LLC
Andover
EGPNA 2020 HoldCo 17 LLC
Andover
EGPNA 2020 HoldCo 18 LLC
Andover
EGPNA 2020 HoldCo 19 LLC
Andover
EGPNA 2020 HoldCo 2 LLC
Andover
EGPNA 2020 HoldCo 20 LLC
Andover
EGPNA 2020 HoldCo 21 LLC
Andover
EGPNA 2020 HoldCo 22 LLC
Andover
EGPNA 2020 HoldCo 23 LLC
Andover
EGPNA 2020 HoldCo 24 LLC
Andover
EGPNA 2020 HoldCo 25 LLC
Andover
EGPNA 2020 HoldCo 26 LLC
Andover
EGPNA 2020 HoldCo 27 LLC
Andover
EGPNA 2020 HoldCo 28 LLC
Andover
EGPNA 2020 HoldCo 29 LLC Andover
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
488 Integrated Annual Report 2023
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 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%
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%
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGPNA 2020 HoldCo 3 LLC
Andover
EGPNA 2020 HoldCo 30 LLC Andover
EGPNA 2020 HoldCo 4 LLC
Andover
EGPNA 2020 HoldCo 5 LLC
Andover
EGPNA 2020 HoldCo 6 LLC
Andover
EGPNA 2020 HoldCo 7 LLC
Andover
EGPNA 2020 HoldCo 8 LLC
Andover
EGPNA 2020 HoldCo 9 LLC
Andover
EGPNA 2023 HoldCo 1 LLC
Andover
EGPNA 2023 HoldCo 10 LLC
Andover
EGPNA 2023 HoldCo 11 LLC
Andover
EGPNA 2023 HoldCo 12 LLC
Andover
EGPNA 2023 HoldCo 13 LLC
Andover
EGPNA 2023 HoldCo 14 LLC
Andover
EGPNA 2023 HoldCo 15 LLC
Andover
EGPNA 2023 HoldCo 16 LLC
Andover
EGPNA 2023 HoldCo 17 LLC
Andover
EGPNA 2023 HoldCo 18 LLC
Andover
EGPNA 2023 HoldCo 19 LLC
Andover
EGPNA 2023 HoldCo 2 LLC
Andover
EGPNA 2023 HoldCo 20 LLC
Andover
EGPNA 2023 HoldCo 3 LLC
Andover
EGPNA 2023 HoldCo 4 LLC
Andover
EGPNA 2023 HoldCo 5 LLC
Andover
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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 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%
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
489
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
EGPNA 2023 HoldCo 6 LLC
Andover
EGPNA 2023 HoldCo 7 LLC
Andover
EGPNA 2023 HoldCo 8 LLC
Andover
EGPNA 2023 HoldCo 9 LLC
Andover
US
US
US
US
EGPNA Development
Holdings LLC
Wilmington
US
EGPNA Hydro Holdings LLC Wilmington
US
EGPNA Preferred Wind
Holdings II LLC
Wilmington
US
EGPNA Preferred Wind
Holdings LLC
Wilmington
US
1
1
1
1
-
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel 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%
EGPNA Project HoldCo 1 LLC Dover
US
100
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
EGPNA Project HoldCo 2 LLC Dover
US
100
USD
Line-by-line
EGPNA Project HoldCo 5 LLC Dover
US
100
USD
Line-by-line
EGPNA Project HoldCo 6 LLC Dover
US
100
USD
Line-by-line
EGPNA Project HoldCo 7 LLC Dover
US
100
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
EGPNA Renewable Energy
Partners LLC
Wilmington
US
EGPNA REP Holdings LLC
Wilmington
US
EGPNA REP Solar Holdings
LLC
Wilmington
US
EGPNA REP Wind Holdings
LLC
Wilmington
US
EGPNA Wind Holdings 1 LLC Wilmington
US
EGPNA-SP Seven Cowboy
Holdings LLC
Andover
US
-
-
-
-
-
1
USD
USD
USD
USD
USD
USD
Equity
EGPNA REP Holdings
LLC
10.00%
10.00%
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
Equity
EGPNA Renewable
Energy Partners LLC
100.00%
10.00%
EGPNA REP Wind
Holdings LLC
100.00%
10.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Elcogas SA in liquidation
Puertollano
ES
809,690
EUR
Elecgas SA
Pego
PT
50,000
EUR
Equity
Equity
Electra Capital (RF) (Pty) Ltd
Johannesburg
ZA
10,000,000
ZAR
Line-by-line
Eléctrica de Jafre SA
Barcelona
ES
165,876
EUR
Line-by-line
Endesa Generación
SAU
40.99%
Enel SpA
4.32%
33.06%
Endesa Generación
Portugal SA
50.00%
35.06%
Enel Green Power
South Africa (Pty) Ltd
60.00%
60.00%
Endesa SA
52.54%
Hidroeléctrica de
Catalunya SLU
47.46%
70.12%
Eléctrica de Lijar SL
Cádiz
ES
1,081,822
EUR
Equity
Endesa SA
50.00%
35.06%
490 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Eléctrica del Ebro SAU
Barcelona
ES
500,000
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Electricidad de Puerto
Real SA
Electro Metalúrgica del
Ebro SL
Electrotest Instalaciones,
Montajes y Mantenimientos
SL
Eletropaulo Metropolitana
Eletricidade de São Paulo SA
Emerald Crescent Solar
Limited Partnership
Puerto Real
ES
4,960,246
EUR
Equity
Endesa SA
50.00%
35.06%
Madrid
ES
2,906,862
EUR
Puerto Real
ES
10,000
EUR
-
-
Enel Green Power
España SLU
0.18%
0.12%
Epresa Energía SA
50.00%
17.53%
São Paulo
BR
3,079,524,934
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Enel Green Power
Emeroo Holding
(Pty) Ltd
Enel Green Power
España SLU
Endesa Generación
SAU
Empresa de
Alumbrado Eléctrico
de Ceuta SA
100.00%
50.00%
100.00%
70.12%
100.00%
70.12%
100.00%
67.61%
Calgary
CA
100
CAD
Line-by-line
Emeroo BESS (Pty) Ltd
Sydney
AU
100
AUD
Equity
Emintegral Cycle SLU
Madrid
Empresa Carbonífera del Sur
- ENCASUR SAU
Madrid
Empresa de Alumbrado
Eléctrico de Ceuta
Distribución SAU
Empresa de Alumbrado
Eléctrico de Ceuta Energía
SLU
Empresa de Alumbrado
Eléctrico de Ceuta SA
Ceuta
Ceuta
Ceuta
ES
ES
ES
ES
ES
3,000
EUR
Line-by-line
18,030,000
EUR
Line-by-line
9,335,000
EUR
Line-by-line
10,000
EUR
Line-by-line
Endesa Energía SAU
100.00%
70.12%
16,562,250
EUR
Line-by-line
Endesa SA
96.42%
67.61%
Distrilec Inversora SA
56.36%
Empresa Distribuidora Sur
SA - Edesur
Empresa Eléctrica
Pehuenche SA
Empresa Propietaria de la
Red SA
Buenos Aires
AR
898,585,028
ARS
Line-by-line
59.33%
Enel Argentina SA
43.10%
Santiago de Chile CL
175,774,920,733
CLP
Line-by-line
Enel Generación
Chile SA
92.65%
56.27%
Panama City
PA
58,500,000
USD
-
Enel SpA
11.11%
11.11%
EN. Solar 4 Single Member
Private Company
Maroussi
GR
1,000
Endesa Capital SAU
Madrid
Endesa Energía Renovable
SLU
Madrid
Endesa Energía SAU
Madrid
Endesa Financiación Filiales
SAU
Madrid
Endesa Generación II SAU
Seville
Endesa Generación Nuclear
SAU
Seville
ES
ES
ES
ES
ES
ES
EUR
EUR
EUR
Equity
Enel Green Power
Hellas Supply Single
Member SA
100.00%
50.00%
Line-by-line
Endesa SA
100.00%
70.12%
Line-by-line
Endesa Energía SAU
100.00%
70.12%
60,200
100,000
14,445,576
EUR
Line-by-line
Endesa SA
100.00%
70.12%
4,621,003,006
EUR
Line-by-line
Endesa SA
100.00%
70.12%
63,107
EUR
Line-by-line
Endesa SA
100.00%
70.12%
60,000
EUR
Line-by-line
Endesa Generación Portugal
SA
Lisbon
PT
50,000
EUR
Line-by-line
Endesa Generación
SAU
100.00%
70.12%
Endesa Energía SAU
0.20%
Endesa Generación
SAU
99.20%
70.12%
Enel Green Power
España SLU
0.60%
Endesa Generación SAU
Seville
ES
1,940,379,735
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Attachments
491
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Endesa Ingeniería SLU
Seville
Endesa Medios y Sistemas
SLU
Madrid
Endesa Mobility SLU
Madrid
Endesa Operaciones y
Servicios Comerciales SLU
Madrid
Endesa X Servicios SLU
Madrid
Endesa X Way SL
Madrid
Endesa SA
Madrid
Enel Alberta Solar Inc.
Calgary
Enel Alberta Storage Inc.
Calgary
ES
ES
ES
ES
ES
ES
ES
CA
CA
965,305
EUR
Line-by-line
Endesa SA
100.00%
70.12%
89,999,790
EUR
Line-by-line
Endesa SA
100.00%
70.12%
10,000,000
EUR
Line-by-line
Endesa SA
100.00%
70.12%
10,138,580
EUR
Line-by-line
Endesa Energía SAU
100.00%
70.12%
32,396
EUR
Line-by-line
Endesa SA
100.00%
70.12%
600,000
EUR
Line-by-line
1,270,502,540
EUR
Line-by-line
Endesa Mobility SLU
49.00%
Enel X Way Srl
Endesa SA
51.00%
0.02%
Enel Iberia SRLU
70.10%
85.36%
70.12%
1
1
CAD
CAD
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Enel Alberta Wind Inc.
Alberta
CA
16,251,021
CAD
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Enel Américas SA
Santiago de Chile CL
15,799,226,825
USD
Line-by-line
Enel SpA
82.27%
82.27%
Enel Argentina SA
Buenos Aires
AR
2,297,711,908
ARS
Line-by-line
Enel Bella Energy Storage
LLC
Wilmington
US
-
USD
Line-by-line
Enel Brasil SA
Niterói
BR
43,393,413,243
BRL
Line-by-line
Enel Américas SA
99.92%
Enel Generación
Chile SA
0.08%
82.25%
Enel Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
100.00%
100.00%
Enel Américas SA
99.61%
Enel Brasil SA
0.39%
82.27%
Enel Chile SA
Santiago de Chile CL
3,882,103,470,184
CLP
Line-by-line
Enel SpA
64.93%
64.93%
Enel CIEN SA
Rio de Janeiro
BR
285,044,682
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Colina SA
Santiago de Chile CL
82,222,000
CLP
Line-by-line
Enel Chile SA
0.00%
Enel Distribución
Chile SA
100.00%
64.34%
Enel Colombia SA ESP
Bogotá
CO
655,222,312,800
COP
Line-by-line
Enel Américas SA
57.34%
47.18%
Enel Costa Rica CAM SA
San José
CR
27,500,000
USD
Line-by-line
Enel Colombia SA
ESP
100.00%
47.18%
Enel Cove Fort II LLC
Wilmington
US
Enel Cove Fort LLC
Beaver
US
-
-
USD
USD
Held for sale
Enel Green Power
North America Inc.
100.00%
100.00%
Held for sale
Enel Geothermal LLC 100.00%
100.00%
Enel Distribución Chile SA
Santiago de Chile CL
177,568,664,063
CLP
Line-by-line
Enel Chile SA
99.09%
64.34%
Enel Distribución Perú SAA
San Miguel
PE
3,033,046,862
SOL
Held for sale
Enel Perú SAC
83.15%
68.41%
Enel Energia SpA
Rome
IT
10,000,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
492 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Enel Energia SA de Cv
Mexico City
MX
25,000,100
MXN
Line-by-line
Enel Energy Australia (Pty) Ltd Sydney
Enel Energy North America
Illinois LLC
Andover
Enel Energy North America
Ohio LLC
Andover
Enel Energy North America
Pennsylvania LLC
Andover
Enel Energy North America
Texas LLC
Andover
Enel Energy North America
LLC
Andover
Enel Energy South Africa
Wilmington
AU
US
US
US
US
US
ZA
200,100
AUD
Equity
1
1
1
1
1
100
USD
USD
USD
USD
USD
ZAR
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Enel Energy Storage
Holdings LLC (formerly EGP
Energy Storage Holdings
LLC)
Andover
US
100
USD
Line-by-line
Held by
% holding
Enel Green Power
México S de RL de Cv
100.00%
Enel Rinnovabile SA
de Cv
0.00%
Group %
holding
100.00%
Enel Green Power
Australia (Pty) Ltd
Enel Energy North
America LLC
Enel Energy North
America LLC
Enel Energy North
America LLC
Enel Energy North
America LLC
100.00%
50.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel X North America
Inc.
100.00%
100.00%
Enel X International
Srl
100.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Erre SpA
Rome
Enel Finance America LLC
Wilmington
IT
US
200,000,000
USD
Line-by-line
3,000,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Finance International NV Amsterdam
NL
1,478,810,371
EUR
Line-by-line
Enel North America
Inc.
Enel Holding Finance
Srl
Enel SpA
100.00%
100.00%
75.00%
25.00%
100.00%
Enel Fortuna SA
Panama City
PA
100,000,000
USD
Line-by-line
Enel Panamá CAM Srl 50.06%
23.62%
Enel Future Project 2020
#1 LLC
Andover
Enel Future Project 2020
#10 LLC
Andover
Enel Future Project 2020
#11 LLC
Andover
Enel Future Project 2020
#12 LLC
Andover
Enel Future Project 2020
#13 LLC
Andover
Enel Future Project 2020
#14 LLC
Andover
Enel Future Project 2020
#15 LLC
Andover
Enel Future Project 2020
#16 LLC
Andover
Enel Future Project 2020
#17 LLC
Andover
Enel Future Project 2020
#18 LLC
Andover
Enel Future Project 2020
#19 LLC
Andover
Enel Future Project 2020
#2 LLC
Andover
Enel Future Project 2020
#20 LLC
Andover
US
US
US
US
US
US
US
US
US
US
US
US
US
-
-
-
-
-
-
-
-
-
-
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Attachments
493
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Future Project 2020
#3 LLC
Andover
Enel Future Project 2020
#4 LLC
Andover
Enel Future Project 2020
#5 LLC
Andover
Enel Future Project 2020
#6 LLC
Andover
Enel Future Project 2020
#7 LLC
Andover
Enel Future Project 2020
#8 LLC
Andover
Enel Future Project 2020
#9 LLC
Andover
US
US
US
US
US
US
US
-
-
-
-
-
-
-
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%
Enel Generación Chile SA
Santiago de Chile CL
552,777,320,871
CLP
Line-by-line
Enel Chile SA
93.55%
60.74%
Enel Generación El Chocón
SA
Buenos Aires
AR
18,321,776,559
ARS
Line-by-line
Enel Generación Perú SAA
San Miguel
PE
3,134,886,677
SOL
Held for sale
Enel Argentina SA
8.67%
Hidroinvest SA
59.00%
Enel Américas SA
20.46%
Enel Perú SAC
66.49%
54.07%
71.54%
Enel Generación Piura SA
San Miguel
PE
249,202,667
SOL
Held for sale
Enel Perú SAC
96.50%
79.39%
Enel Generación SA de Cv
Mexico City
MX
7,100,100
MXN
Line-by-line
Enel Geothermal LLC
Wilmington
US
-
USD
Held for sale
Enel Green Power
México S de RL de Cv
100.00%
Enel Rinnovabile SA
de Cv
0.00%
100.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Global Services Srl
Rome
Enel Global Trading SpA
Rome
IT
IT
10,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
90,885,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Green Power
25RoseFarms Holdings LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Enel Green Power Argentina
Buenos Aires
AR
463,577,761
ARS
Line-by-line
Enel Américas SA
100.00%
82.27%
Enel Green Power Aroeira
01 SA
Enel Green Power Aroeira
02 SA
Enel Green Power Aroeira
03 SA
Enel Green Power Aroeira
04 SA
Rio de Janeiro
BR
334,518,402
BRL
Line-by-line
Rio de Janeiro
BR
284,501,000
BRL
Line-by-line
Rio de Janeiro
BR
284,501,000
BRL
Line-by-line
Rio de Janeiro
BR
430,299,146
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.97%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.03%
494 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
100.00%
Group %
holding
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 Australia
(Pty) Ltd
Enel Green Power Australia
Trust
Rio de Janeiro
BR
284,501,000
BRL
Line-by-line
Rio de Janeiro
BR
284,511,002
BRL
Line-by-line
Rio de Janeiro
BR
284,501,000
BRL
Line-by-line
Rio de Janeiro
BR
284,501,000
BRL
Line-by-line
Sydney
AU
100
AUD
Sydney
AU
100
AUD
Equity
Equity
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
82.27%
0.00%
50.00%
50.00%
Enel Green Power
SpA
50.00%
50.00%
Enel Green Power Azure Blue
Jay Solar Holdings LLC
Andover
Enel Green Power Azure
Ranchland Holdings LLC
Andover
Enel Green Power
AzureRanchII Wind Holdings
LLC
Andover
US
US
US
1
-
1
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%
Enel Green Power Blanche
Holding (Pty) Ltd
Enel Green Power Blanche
Holding Trust
Enel Green Power Boa Vista
01 Ltda
Enel Green Power Boa Vista
Eólica SA
Enel Green Power
Bouldercombe Holding
(Pty) Ltd
Enel Green Power
Bouldercombe Trust
Enel Green Power Bungala
(Pty) Ltd
Enel Green Power Bungala
Trust
Enel Green Power Cabeça
de Boi SA
Sydney
AU
100
AUD
Equity
EGP Australia (Pty) Ltd 100.00%
50.00%
Sydney
AU
100
AUD
Equity
Salvador
BR
3,554,607
BRL
Line-by-line
Enel Green Power
Australia Trust
100.00%
50.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Rio de Janeiro
BR
42,890,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Sydney
AU
100
AUD
Sydney
AU
10
AUD
Sydney
AU
100
AUD
Sydney
AU
-
AUD
Equity
Equity
Equity
Equity
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
Australia Trust
100.00%
50.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Niterói
BR
270,114,539
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power Cachoeira
Dourada SA
Cachoeira
Dourada
BR
64,339,836
BRL
Line-by-line
Enel Green Power Canada
Inc.
Enel Green Power Cerrado
Solar SA
Montreal
CA
85,681,857
CAD
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Brasil SA
99.61%
Enel Green Power
Cachoeira Dourada
SA
0.15%
82.07%
Enel Green Power
North America Inc.
100.00%
100.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Attachments
495
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Enel Green Power Chile SA
Santiago de Chile CL
842,121,531
USD
Line-by-line
Held by
% holding
Enel Chile SA
99.99%
Enel SpA
0.01%
Group %
holding
64.93%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Enel Green Power Cimarron
Bend Wind Holdings III LLC
Enel Green Power Cohuna
Holdings (Pty) Ltd
Sydney
AU
3,419,700
AUD
Enel Green Power Cohuna
Trust
Sydney
AU
Enel Green Power Cove Fort
Solar LLC
Wilmington
US
-
1
AUD
USD
Equity
Equity
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
Australia Trust
100.00%
50.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Enel Green Power Cristal
Eólica SA
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
Enel Green Power Cumaru
Participações SA
Enel Green Power Cumaru
Solar 01 SA
Enel Green Power Cumaru
Solar 02 SA
Enel Green Power
Damascena Eólica SA
Enel Green Power Delfina A
Eólica SA
Enel Green Power Delfina B
Eólica SA
Enel Green Power Delfina C
Eólica SA
Enel Green Power Delfina D
Eólica SA
Enel Green Power Delfina E
Eólica SA
Rio de Janeiro
BR
87,784,899
BRL
Line-by-line
Niterói
BR
204,653,591
BRL
Line-by-line
Niterói
BR
107,601,273
BRL
Line-by-line
Rio de Janeiro
BR
225,021,296
BRL
Line-by-line
Rio de Janeiro
BR
230,869,708
BRL
Line-by-line
Rio de Janeiro
BR
180,208,001
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
83,709,003
BRL
Line-by-line
Enel Brasil SA
98.63%
Enel Green Power
Desenvolvimento
Ltda
82.27%
1.37%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.94%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.16%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.84%
Rio de Janeiro
BR
284,062,483
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
93,068,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
31,105,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
105,864,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Niterói
BR
105,936,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
496 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
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
Rio de Janeiro
BR
61,617,590
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rome
IT
20,000
EUR
Line-by-line
Wilmington
US
1
USD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Diamond Vista
Holdings LLC
100.00%
100.00%
Rio de Janeiro
BR
83,347,009
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power Egypt SAE Cairo
EG
250,000
EGP
Line-by-line
El Salvador
SV
22,860
USD
Line-by-line
Alberta
CA
1,000
CAD
Line-by-line
Calgary
CA
1,000
CAD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Enel Américas SA
0.04%
Enel Green Power
SpA
99.96%
Enel Alberta Wind
Inc.
1.00%
Enel Green Power
Canada Inc.
99.00%
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
99.99%
100.00%
100.00%
Sydney
AU
100
AUD
Equity
EGP Australia (Pty) Ltd 100.00%
50.00%
Rio de Janeiro
BR
97,191,530
BRL
Line-by-line
Madrid
ES
3,000
EUR
Line-by-line
Madrid
ES
11,153
EUR
Line-by-line
Rio de Janeiro
BR
99,418,174
BRL
Line-by-line
Enel Brasil SA
98.35%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
España SLU
82.27%
1.65%
100.00%
70.12%
Endesa Generación
SAU
100.00%
70.12%
Enel Brasil SA
98.89%
Enel Green Power
Desenvolvimento
Ltda
82.27%
1.11%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Niterói
BR
264,141,174
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Sydney
AU
100
AUD
Equity
EGP Australia (Pty) Ltd 100.00%
50.00%
Enel Green Power El Salvador
SA de Cv
Enel Green Power Elkwater
Wind Limited Partnership
Enel Green Power
Elmsthorpe Wind LP
Enel Green Power Emeroo
Holding (Pty) Ltd
Enel Green Power Emiliana
Eólica SA
Enel Green Power España
Solar 1 SLU
Enel Green Power España
SLU
Enel Green Power Esperança
Eólica SA
Enel Green Power Estonian
Solar Project LLC
Enel Green Power Fazenda
SA
Enel Green Power Fence Post
Solar Holdings LLC
Enel Green Power Flat Rocks
One Holding (Pty) Ltd
Enel Green Power Flat Rocks
One Holding Trust
Enel Green Power Fontes dos
Ventos 2 SA
Sydney
AU
100
AUD
Equity
Rio de Janeiro
BR
183,315,219
BRL
Line-by-line
Enel Green Power Fontes dos
Ventos 3 SA
Rio de Janeiro
BR
221,001,000
BRL
Line-by-line
Enel Green Power Fontes II
Participações SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power
Australia Trust
100.00%
50.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Attachments
497
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
99.90%
Group %
holding
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Berlin
DE
25,000
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Sydney
AU
100
AUD
Sydney
AU
10
AUD
Equity
Equity
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
Australia Trust
100.00%
50.00%
Amsterdam
NL
10,000
EUR
Line-by-line
Enel Green Power Hadros
Wind Limited Partnership
-
CA
1,000
CAD
Line-by-line
Enel Green Power Hellas SA
Maroussi
GR
40,187,850
EUR
Maroussi
GR
13,357,770
EUR
Maroussi
GR
140,669,641
EUR
Equity
Equity
Equity
Berlin
DE
50,000
EUR
Line-by-line
Dover
US
1
USD
Line-by-line
Enel Green Power Fontes
Solar SA
Enel Green Power Ganado
Solar Holdings LLC
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 Hellas
Supply Single Member SA
Enel Green Power Hellas
Wind Parks South Evia Single
Member SA
Enel Green Power HF101
GmbH & Co. KG
Enel Green Power Hilltopper
Wind LLC (formerly Hilltopper
Wind Power LLC)
Enel Green Power Holding
Crocodile Creek (Pty) Ltd
Enel Green Power Horizonte
MP Solar SA
Enel Green Power
SpA
100.00%
100.00%
Enel Alberta Wind Inc.
1.00%
Enel Green Power
Canada Inc.
99.00%
100.00%
Hellas Res Holdings
Single Member
Societe Anonyme
100.00%
50.00%
Hella Res Societe
Anonyme
100.00%
50.00%
Enel Green Power
Hellas SA
100.00%
50.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Hilltopper Wind
Holdings LLC
100.00%
100.00%
Alba Energia Ltda
0.01%
Enel Brasil SA
99.99%
82.27%
Enel Green Power
Development Srl
100.00%
100.00%
Sydney
AU
100
AUD
Equity
EGP Australia (Pty) Ltd 100.00%
50.00%
Rio de Janeiro
BR
431,566,053
BRL
Line-by-line
200,000,000
INR
Line-by-line
Enel Green Power India
Private Limited
New Delhi
Enel Green Power Italia Srl
Rome
IN
IT
272,000,000
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
Rio de Janeiro
BR
219,806,646
BRL
Line-by-line
Rio de Janeiro
BR
227,810,333
BRL
Line-by-line
Rio de Janeiro
BR
408,949,643
BRL
Line-by-line
Rio de Janeiro
BR
90,259,530
BRL
Line-by-line
Bondia Energia Ltda
0.08%
Enel Brasil SA
99.92%
Bondia Energia Ltda
0.00%
Enel Brasil SA
100.00%
Bondia Energia Ltda
0.00%
Enel Brasil SA
100.00%
Enel Brasil SA
98.33%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
1.67%
99.00%
82.27%
82.27%
82.27%
82.27%
Nairobi
KE
100,000
KES
Line-by-line
100.00%
Enel Green Power
South Africa (Pty) Ltd
1.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power Korea LLC Seoul
KR
7,880,000,000
KRW
Line-by-line
498 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
99.90%
Group %
holding
Enel Green Power Lagoa do
Sol 01 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 02 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 03 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 04 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 05 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 06 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 07 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 08 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 09 SA
Teresina
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 10 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 11 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 12 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Lagoa do
Sol 13 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
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
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Attachments
499
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
99.20%
Group %
holding
Enel Green Power Maniçoba
Eólica SA
Enel Green Power Matimba
Srl in liquidation
Rio de Janeiro
BR
90,722,530
BRL
Line-by-line
Rome
IT
10,000
EUR
Equity
Enel Green Power Metehara
Solar Private Limited
Company
-
ET
5,600,000
ETB
Line-by-line
Enel Green Power México S
de RL de Cv
Mexico City
MX
10,595,218,475
MXN
Line-by-line
Enel Green Power MM GmbH
& Co. KG
Berlin
DE
50,000
EUR
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
82.27%
0.80%
50.00%
50.00%
Enel Green Power
Solar Metehara SpA
80.00%
80.00%
Enel Green Power
SpA
66.67%
Enel Rinnovabile SA
de Cv
33.33%
100.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Enel Green Power Modelo I
Eólica SA
Enel Green Power Modelo II
Eólica SA
Enel Green Power Morocco
Sàrl
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 Morro
Norte 02 SA
Enel Green Power Morro
Norte 03 SA
Enel Green Power Morro
Norte 04 SA
Rio de Janeiro
BR
70,842,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
63,742,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Casablanca
MA
839,000,000
MAD
Line-by-line
Enel Green Power
Development Srl
0.00%
Enel Green Power
SpA
100.00%
100.00%
Rio de Janeiro
BR
248,138,287
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
206,050,114
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Green Power Mourão SA Rio de Janeiro
BR
25,600,100
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power Namibia
(Pty) Ltd
Windhoek
NA
10,000
NAD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power North
America Development LLC
Wilmington
US
Enel Green Power North
America Inc.
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
Enel Green Power Nova
Olinda 02 SA
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
500 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
99.90%
Group %
holding
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Rio de Janeiro
BR
10,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power Nova
Olinda 03 SA
Enel Green Power Nova
Olinda 04 SA
Enel Green Power Nova
Olinda 05 SA
Enel Green Power Nova
Olinda 06 SA
Enel Green Power Nova
Olinda 07 SA
Enel Green Power Nova
Olinda 08 SA
Enel Green Power Nova
Olinda 09 SA
Enel Green Power Nova
Olinda 10 SA
Enel Green Power Nova
Olinda 11 SA (formerly Enel
Green Power Aroeira 09 SA)
Enel Green Power Nova
Olinda 12 SA
Enel Green Power Nova
Olinda 13 SA (formerly Enel
Brasil Central SA)
Enel Green Power Novo Lapa
01 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
02 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
03 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
04 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
05 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
06 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Attachments
501
Enel Green Power O&M
Solar LLC
Enel Green Power
Paranapanema SA
Enel Green Power
Partecipazioni Speciali Srl
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
99.90%
Group %
holding
Enel Green Power Novo Lapa
07 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Novo Lapa
08 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Niterói
BR
162,567,500
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rome
IT
10,000
EUR
Line-by-line
Enel Green Power Pau Ferro
Eólica SA
Rio de Janeiro
BR
74,124,000
BRL
Line-by-line
Enel Green Power Pedra do
Gerônimo Eólica SA
Enel Green Power PO11
GmbH & Co. KG
Enel Green Power PO133
GmbH & Co. KG
Enel Green Power PO25
GmbH & Co. KG
Enel Green Power Primavera
Eólica SA
Rio de Janeiro
BR
119,319,528
BRL
Line-by-line
Berlin
DE
50,000
EUR
Line-by-line
Berlin
DE
50,000
EUR
Line-by-line
Berlin
DE
50,000
EUR
Line-by-line
Rio de Janeiro
BR
95,674,900
BRL
Line-by-line
Enel Green Power Puglia Srl
Rome
IT
1,000,000
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Enel Brasil SA
97.92%
Enel Green Power
Desenvolvimento
Ltda
82.27%
2.08%
Enel Brasil SA
98.25%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Germany GmbH
82.27%
1.75%
100.00%
100.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Enel Brasil SA
98.50%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Italia Srl
82.27%
1.50%
100.00%
100.00%
Enel Green Power Quorn
Holding (Pty) Ltd
Enel Green Power Quorn
Holding Trust
Sydney
AU
100
AUD
Equity
EGP Australia (Pty) Ltd 100.00%
50.00%
Sydney
AU
100
AUD
Equity
Enel Green Power
Australia Trust
100.00%
50.00%
Enel Green Power RA SAE in
liquidation
Cairo
EG
15,000,000
EGP
Line-by-line
Enel Green Power
Egypt SAE
100.00%
100.00%
Enel Green Power
Rattlesnake Creek Wind
Project LLC (formerly
Rattlesnake Creek Wind
Project LLC)
Enel Green Power
Roadrunner Solar Project
Holdings II LLC
Enel Green Power
Roadrunner Solar Project
Holdings LLC
Enel Green Power
Roadrunner Solar Project
II LLC
Delaware
US
Andover
Andover
US
US
1
-
-
USD
USD
USD
Line-by-line
Rattlesnake Creek
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%
Dover
US
100
USD
Line-by-line
Enel Roadrunner
Solar Project
Holdings II LLC
100.00%
100.00%
Enel Green Power Rockhaven
Ranchland Holdings LLC
Andover
Enel Green Power Roseland
Solar LLC
Andover
US
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
25RoseFarms
Holdings LLC
100.00%
100.00%
502 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Green Power RSA
(Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Enel Green Power RSA 2 (RF)
(Pty) Ltd
Johannesburg
ZA
120
ZAR
Equity
Equity
Enel Green Power Rus
Limited Liability Company
Moscow
RU
60,500,000
RUB
Line-by-line
EGP Matimba NewCo
1 Srl
100.00%
50.00%
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
SpA
100.00%
50.00%
1.00%
99.00%
100.00%
Enel Green Power SpA
Rome
IT
272,000,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Green Power Salto
Apiacás SA (formerly Enel
Green Power Damascena
Eólica SA)
Rio de Janeiro
BR
274,420,832
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Green Power Sannio Srl
Rome
IT
750,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power São
Abraão Eólica SA
Enel Green Power São Cirilo
02 SA
Enel Green Power São Cirilo
03 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)
Enel Green Power São
Gonçalo 11 SA (formerly Enel
Green Power Projetos 44 SA)
Enel Green Power São
Gonçalo 12 SA (formerly Enel
Green Power Projetos 22 SA)
Enel Green Power São
Gonçalo 14
Enel Green Power São
Gonçalo 15
Enel Green Power São
Gonçalo 17 SA
Enel Green Power São
Gonçalo 18 SA (formerly
Enel Green Power Ventos de
Santa Ângela 13 SA)
Rio de Janeiro
BR
91,300,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Teresina
BR
81,960,397
BRL
Line-by-line
Teresina
BR
82,268,019
BRL
Line-by-line
Teresina
BR
114,522,005
BRL
Line-by-line
Teresina
BR
109,281,818
BRL
Line-by-line
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Enel Brasil SA
100.00%
82.27%
82.27%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Teresina
BR
82,871,484
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Teresina
BR
114,475,155
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Teresina
BR
108,022,915
BRL
Line-by-line
Teresina
BR
147,279,288
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Teresina
BR
120,057,469
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Teresina
BR
122,007,043
BRL
Line-by-line
Teresina
BR
120,981,744
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Attachments
503
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
100.00%
Group %
holding
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
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 15)
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
Teresina
BR
122,467,789
BRL
Line-by-line
Teresina
BR
99,994,198
BRL
Line-by-line
Teresina
BR
99,787,960
BRL
Line-by-line
Teresina
BR
91,324,686
BRL
Line-by-line
Teresina
BR
90,925,258
BRL
Line-by-line
Teresina
BR
98,230,525
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
Alba Energia Ltda
0.00%
Enel Brasil SA
100.00%
82.27%
82.27%
82.27%
82.27%
82.27%
Teresina
BR
183,602,691
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Niterói
BR
82,674,900
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Teresina
BR
1,000
BRL
Line-by-line
Wilmington
US
100
USD
Line-by-line
Enel Brasil SA
98.26%
Enel Green Power
Desenvolvimento
Ltda
82.27%
1.74%
Alba Energia Ltda
0.10%
Enel Brasil SA
99.90%
Alba Energia Ltda
0.10%
Enel Brasil SA
99.90%
Alba Energia Ltda
0.10%
Enel Brasil SA
Enel Brasil SA
Enel Green Power
Desenvolvimento
Ltda
99.90%
99.90%
0.10%
Enel Brasil SA
99.90%
82.27%
82.27%
82.27%
82.27%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
North America Inc.
82.27%
0.10%
100.00%
100.00%
Enel Green Power Shu SAE in
liquidation
Cairo
EG
15,000,000
EGP
Line-by-line
Enel Green Power
Egypt SAE
100.00%
100.00%
Enel Green Power Singapore
Pte Ltd
Enel Green Power Solar
Energy Srl
Enel Green Power Solar
Metehara SpA
Enel Green Power Solar
Ngonye SpA (formerly Enel
Green Power Africa Srl)
Enel Green Power South
Africa (Pty) Ltd
Enel Green Power South
Africa 3 (Pty) Ltd
Enel Green Power Stampede
Solar Holdings LLC
Singapore
SG
8,000,000
SGD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Rome
Rome
Rome
IT
IT
IT
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
50,000
EUR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
50,000
EUR
Held for sale
EGP Matimba NewCo
2 Srl
100.00%
100.00%
Johannesburg
ZA
1,000
ZAR
Line-by-line
Gauteng
ZA
1,000
ZAR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
504 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Green Power Swift
Wind LP
Enel Green Power Tacaicó
Eólica SA
Calgary
CA
1,000
CAD
Line-by-line
Rio de Janeiro
BR
50,034,360
BRL
Line-by-line
Enel Green Power Tefnut SAE
in liquidation
Cairo
EG
15,000,000
EGP
Line-by-line
Enel Green Power Turkey
Enerjí Yatirimlari Anoním
Şírketí
Enel Green Power UB33
GmbH & Co. KG
Enel Green Power UB43
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
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)
Istanbul
TR
37,141,108
TRY
Line-by-line
Berlin
DE
75,000
EUR
Line-by-line
Berlin
DE
50,000
EUR
Line-by-line
Teresina
BR
182,273,006
BRL
Line-by-line
Teresina
BR
122,100,849
BRL
Line-by-line
Teresina
BR
132,786,606
BRL
Line-by-line
Teresina
BR
198,554,956
BRL
Line-by-line
Teresina
BR
125,100,849
BRL
Line-by-line
Teresina
BR
152,022,288
BRL
Line-by-line
Teresina
BR
95,587,248
BRL
Line-by-line
Teresina
BR
299,922,006
BRL
Line-by-line
Teresina
BR
92,895,409
BRL
Line-by-line
Teresina
BR
85,179,410
BRL
Line-by-line
Teresina
BR
99,786,606
BRL
Line-by-line
Teresina
BR
100,732,205
BRL
Line-by-line
Group %
holding
100.00%
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
Enel Brasil SA
97.87%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Egypt SAE
82.27%
2.13%
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Enel Green Power
Germany GmbH
100.00%
100.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Attachments
505
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
100.00%
Group %
holding
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)
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)
Teresina
BR
84,786,606
BRL
Line-by-line
Teresina
BR
83,786,606
BRL
Line-by-line
Teresina
BR
81,245,806
BRL
Line-by-line
Teresina
BR
91,786,606
BRL
Line-by-line
Teresina
BR
118,786,606
BRL
Line-by-line
Teresina
BR
94,727,364
BRL
Line-by-line
Teresina
BR
77,496,725
BRL
Line-by-line
Teresina
BR
89,917,563
BRL
Line-by-line
Teresina
BR
86,496,703
BRL
Line-by-line
Rio de Janeiro
BR
173,154,501
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
221,832,010
BRL
Line-by-line
Rio de Janeiro
BR
152,494,014
BRL
Line-by-line
Rio de Janeiro
BR
252,240,013
BRL
Line-by-line
Rio de Janeiro
BR
252,240,013
BRL
Line-by-line
Rio de Janeiro
BR
225,898,777
BRL
Line-by-line
Rio de Janeiro
BR
124,625,154
BRL
Line-by-line
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Esperança Energias
Renováveis SA
0.00%
82.27%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Ventos de Santa
Ângela Energias
Renováveis SA
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
98.67%
Enel Green Power
Desenvolvimento
Ltda
81.18%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
506 Integrated Annual Report 2023
Consolidation
method
Held by
% holding
Enel Brasil SA
100.00%
Group %
holding
Company name
Headquarters
Country
Share capital
Currency
Segment
Enel Green Power Ventos
de Santa Esperança 25 SA
(formerly Enel Green Power
Projetos 40 SA)
Enel Green Power Ventos
de Santa Esperança 26 SA
(formerly Enel Green Power
Projetos 41 SA)
Enel Green Power Ventos de
Santa Esperança 3 SA
Enel Green Power Ventos
de Santa Esperança 7 SA
(formerly Enel Green Power
Lagedo Alto SA)
Enel Green Power Ventos
de Santa Esperança
Participações SA (formerly
Enel Green Power Cumaru
06 SA)
Enel Green Power Ventos de
Santo Orestes 1 SA
Rio de Janeiro
BR
171,324,008
BRL
Line-by-line
Rio de Janeiro
BR
344,251,126
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Ventos de
Santo Orestes 2 SA
Rio de Janeiro
BR
1,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 01 SA
Teresina
BR
383,436,551
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 02 SA
Teresina
BR
369,758,651
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 03 SA
Teresina
BR
262,576,701
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 04 SA
Teresina
BR
379,980,531
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 05 SA
Teresina
BR
362,501,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 06 SA
Teresina
BR
262,501,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 07 SA
Teresina
BR
262,501,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 08 SA
Teresina
BR
337,473,758
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 11 SA
Teresina
BR
318,740,451
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 13 SA
Teresina
BR
262,501,000
BRL
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
99.90%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.10%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
99.96%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.04%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Attachments
507
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Enel Brasil SA
100.00%
Group %
holding
Enel Green Power Ventos de
São Roque 16 SA
Teresina
BR
353,284,551
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 17 SA
Teresina
BR
298,952,101
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 18 SA
Teresina
BR
332,473,759
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 19 SA
Teresina
BR
262,501,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 22 SA
Teresina
BR
262,501,000
BRL
Line-by-line
Enel Green Power Ventos de
São Roque 26 SA
Teresina
BR
262,501,000
BRL
Line-by-line
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 Việt Nam)
Teresina
BR
262,501,000
BRL
Line-by-line
Berlin
DE
25,000
EUR
Line-by-line
Ho Chi Minh City
VN
2,431,933
USD
Line-by-line
Enel Green Power Villoresi Srl Rome
IT
1,200,000
EUR
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Germany GmbH
82.27%
0.00%
100.00%
100.00%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
Italia Srl
51.00%
51.00%
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
Niterói
BR
565,756,528
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Lusaka
ZM
15,000
ZMW
Line-by-line
Enel Green Power
Development Srl
1.00%
Enel Green Power
South Africa (Pty) Ltd
99.00%
100.00%
Rio de Janeiro
BR
77,939,980
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
6,986,993
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Grids Srl
Rome
IT
10,100,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel Guatemala SA
Guatemala City
GT
67,208,000
GTQ
Line-by-line
Enel Américas SA
0.00%
Enel Colombia SA
ESP
100.00%
47.18%
Enel Holding Finance Srl
Rome
Enel Iberia SRLU
Madrid
Enel Innovation Hubs Srl
Rome
Enel Insurance NV
Amsterdam
Enel Investment Holding BV
Amsterdam
Enel Italia SpA
Rome
IT
ES
IT
NL
NL
IT
10,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
336,142,500
EUR
Line-by-line
Enel SpA
100.00%
100.00%
1,100,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
60,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
1,000,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
100,000,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
508 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Kansas Development
Holdings LLC
Andover
US
Enel Kansas LLC
Wilmington
US
Enel Land HoldCo LLC
Andover
Enel Logistics Srl
Rome
US
IT
-
-
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
1,000,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Minnesota Holdings LLC Minneapolis
US
-
USD
Line-by-line
EGP Geronimo
Holding Company
Inc.
100.00%
100.00%
Enel Mobility Chile SpA
Santiago de Chile CL
504,094,780
CLP
Line-by-line
Enel Chile SA
100.00%
64.93%
Enel Nevkan Inc.
Wilmington
US
-
Enel North America Inc.
Andover
US
50
USD
USD
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
CAD
Line-by-line
Enel Panamá CAM Srl
Panama City
PA
3,001
USD
Line-by-line
Enel Green Power
Canada Inc.
100.00%
100.00%
Enel Américas SA
0.03%
Enel Colombia SA
ESP
99.97%
47.19%
Enel Perú SAC
San Miguel
PE
5,361,789,105
SOL
Line-by-line
Enel Américas SA
100.00%
82.27%
Enel Produzione SpA
Rome
IT
1,800,000,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel QPSF (Pty) Ltd
Sydney
AU
100
AUD
Equity
Enel Renovable Srl
Panama City
PA
40,320
USD
Line-by-line
Enel Rinnovabile SA de Cv
Mexico City
MX
12,645,490,022
MXN
Line-by-line
Enel Roadrunner Solar
Project Holdings II LLC
Enel Roadrunner Solar
Project Holdings LLC
Andover
US
-
USD
Line-by-line
Dover
US
100
USD
Line-by-line
Enel Green Power
Australia Trust
100.00%
50.00%
Enel Colombia SA
ESP
0.79%
Enel Panamá CAM Srl 99.21%
Enel Green Power
Global Investment BV
100.00%
Enel Green Power
México S de RL de Cv
0.00%
47.19%
100.00%
Enel Green Power
Roadrunner Solar
Project Holdings
II LLC
Enel Green Power
Roadrunner Solar
Project Holdings LLC
100.00%
100.00%
100.00%
100.00%
Enel Salt Wells LLC
Fallon
US
-
USD
Held for sale
Enel Geothermal LLC 100.00%
100.00%
Enel Services México SA
de Cv
Mexico City
MX
6,339,849
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
46.27%
Enel Green Power
SpA
53.73%
Enel Guatemala SA
0.00%
Enel Rinnovabile SA
de Cv
0.00%
100.00%
Enel Sole Srl
Rome
IT
4,600,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
Enel Soluções Energéticas
Ltda
Rio de Janeiro
BR
42,863,000
BRL
Line-by-line
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
82.27%
0.00%
Enel Stillwater LLC
Wilmington
US
-
USD
Held for sale
Enel Geothermal LLC 100.00%
100.00%
Attachments
509
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel Surprise Valley LLC
Wilmington
US
-
USD
Held for sale
Enel Kansas LLC
100.00%
100.00%
Enel Texkan Inc.
Wilmington
US
100
USD
Line-by-line
Chi Power Inc.
100.00%
100.00%
Enel Trading Argentina Srl
Buenos Aires
AR
14,012,000
ARS
Line-by-line
Enel Américas SA
55.00%
Enel Argentina SA
45.00%
82.26%
Enel Trading Brasil SA
Rio de Janeiro
BR
54,280,312
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel Trading North America
LLC
Wilmington
Enel Uruguay SA
Montevideo
Enel Vayu (Project 2) Private
Limited
Gurugram
Enel Wind Project (Amberi)
Private Limited
New Delhi
Enel X Advisory Services
Germany GmbH
Frankfurt
Enel X Advisory Services
Japan GK
Enel X Advisory Services
North America Inc.
Tokyo
Boston
Enel X Advisory Services Srl
Rome
US
UY
IN
IN
DE
JP
US
IT
10,000,000
USD
Line-by-line
Enel North America
Inc.
100.00%
100.00%
20,000
UYU
Line-by-line
Enel Brasil SA
100.00%
82.27%
45,000,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
5,000,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
50,000
EUR
Line-by-line
100,000,000
JPY
Line-by-line
-
-
USD
EUR
Line-by-line
Enel X Advisory
Services Srl
Enel X Advisory
Services Srl
Enel X Advisory
Services Srl
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel X Advisory Services UK
Limited
London
GB
30,000
GBP
Line-by-line
Enel X Advisory Services
USA LLC
Boston
Enel X Arecibo LLC
Boston
US
US
-
-
USD
USD
Line-by-line
Enel X Srl
100.00%
100.00%
Enel X Advisory
Services Srl
Enel X Advisory
Services North
America Inc.
100.00%
100.00%
100.00%
100.00%
Line-by-line
Line-by-line
Enel X Project MP
Holdings LLC
100.00%
100.00%
Enel X Argentina SAU
Buenos Aires
AR
127,800,000
ARS
Line-by-line
Enel X Asputeck Ave. Project
LLC
Boston
Enel X Australia Holding
(Pty) Ltd
Melbourne
Enel X Australia (Pty) Ltd
Melbourne
US
AU
AU
-
USD
Line-by-line
45,424,578
AUD
Line-by-line
24,209,880
AUD
Line-by-line
Enel X Battery Storage
Limited Partnership
Oakville
CA
10,000
CAD
Line-by-line
Enel X Beech Road Project
LLC
Dover
Enel X Brasil Gerenciamento
de Energia Ltda
Sorocaba
Enel X Brasil SA
São Paulo
US
BR
BR
100
USD
Line-by-line
5,538,403
BRL
Line-by-line
Enel X International
Srl
100.00%
100.00%
Enel X Finance
Partner LLC
Enel X International
Srl
Energy Response
Holdings (Pty) Ltd
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel X Canada
Holding Inc.
0.01%
Enel X Canada Ltd
99.99%
100.00%
Enel X Finance
Partner LLC
Enel X Advisory
Services Srl
100.00%
100.00%
100.00%
100.00%
766,725,892
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enel X Canada Holding Inc.
Oakville
CA
1,000
Enel X Canada Ltd
Mississauga
CA
1,000
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
2,837,737,149
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 Colombia SAS ESP
Bogotá
CO
230,368,000
COP
Line-by-line
Enel X MA Holdings
LLC
Enel Colombia SA
ESP
100.00%
100.00%
100.00%
47.18%
510 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Cosgray Road Project
LLC
Dover
Enel X Demand Response SA São Paulo
Enel X Demand Response
LLC
Boston
Enel X Federal LLC
Boston
Enel X Finance Partner LLC
Boston
Enel X Germany GmbH
Berlin
Enel X Hayden Rowe St.
Project LLC
Boston
Enel X International Srl
Rome
Enel X Ireland Limited
Dublin
Enel X Italia Srl
Rome
Enel X Japan KK
Tokyo
Enel X KOMIPO Solar Limited
Seoul
Enel X Korea Limited
Seoul
Enel X Las Piedras LLC
Boston
Enel X MA Holdings LLC
Boston
Enel X MA PV Portfolio 1 LLC
Boston
Enel X MA PV Portfolio 2 LLC
Boston
Enel X MA PV Portfolio 3 LLC
Boston
US
BR
US
US
US
DE
US
IT
IE
IT
JP
KR
KR
US
US
US
US
US
100
USD
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
2,000,000
BRL
Line-by-line
Enel X Brasil SA
100.00%
82.27%
100
5,000
100
USD
USD
USD
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
25,000
EUR
Line-by-line
100
USD
Line-by-line
Enel X International
Srl
Enel X MA Holdings
LLC
100.00%
100.00%
100.00%
100.00%
100,000
EUR
Line-by-line
Enel X Srl
100.00%
100.00%
10,841
EUR
Line-by-line
Enel X International
Srl
100.00%
100.00%
200,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
1,030,000,000
JPY
Line-by-line
Enel X International
Srl
100.00%
100.00%
11,054,000,000
KRW
Line-by-line
Enel X Korea Limited
80.00%
80.00%
11,800,000,000
KRW
Line-by-line
Enel X International
Srl
100.00%
100.00%
-
100
-
-
-
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
Line-by-line
Enel X Project MP
Holdings LLC
Enel X Project MP
Holdings LLC
100.00%
100.00%
100.00%
100.00%
Enel X México S de RL de Cv Mexico City
MX
264,303,595
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
0.00%
Enel X International
Srl
100.00%
100.00%
Enel X Mobilidade Urbana SA São Paulo
Enel X Morrissey Blvd. Project
LLC
Boston
Enel X New Zealand Limited Wellington
Enel X Newton Court Project
LLC
Boston
Enel X North America Inc.
Boston
Enel X Perú SAC
San Miguel
Enel X Polska Sp. Zo.o.
Warsaw
Enel X Pr Holdings LLC
Boston
Enel X Project MP Holdings
LLC
Boston
Enel X Project MP Sponsor
LLC
Boston
BR
US
NZ
US
US
PE
PL
US
US
US
163,642,000
BRL
Line-by-line
Enel X Brasil SA
100.00%
82.27%
100
USD
Line-by-line
313,606
AUD
Line-by-line
10,000
USD
Line-by-line
1,000
USD
Line-by-line
Enel X MA Holdings
LLC
100.00%
100.00%
Energy Response
Holdings (Pty) Ltd
Enel X Finance
Partner LLC
100.00%
100.00%
100.00%
100.00%
Enel North America
Inc.
100.00%
100.00%
1,020,815
SOL
Held for sale
Enel Perú SAC
100.00%
82.27%
12,275,150
PLN
Line-by-line
Enel X Ireland Limited 100.00%
100.00%
-
-
-
USD
USD
USD
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%
Attachments
511
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Enel X Rus LLC
Moscow
Enel X Srl
Rome
RU
IT
8,000,000
RUB
Line-by-line
Enel X International
Srl
99.00%
99.00%
1,050,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Enel X Services India Private
Limited
Mumbai
IN
1,497,290
INR
Line-by-line
Enel X Storage LLC
Boston
US
100
USD
Line-by-line
Enel X International
Srl
100.00%
Enel X North America
Inc.
0.00%
100.00%
Enel X North America
Inc.
100.00%
100.00%
Enel X Taiwan Co. Ltd
Taipei
TW
271,100,000
TWD
Line-by-line
Enel X Ireland Limited 100.00%
100.00%
Enel X UK Limited
London
Enel X Warner Road Project
LLC
Dover
GB
US
32,626
GBP
Line-by-line
100
USD
Line-by-line
Enel X International
Srl
100.00%
100.00%
Enel X Finance
Partner LLC
100.00%
100.00%
Enel X Way (Shanghai) Co. Ltd Shanghai
CN
10,500,000
CNY
Line-by-line
Enel X Way Srl
100.00%
100.00%
Enel X Way Brasil SA
Rio de Janeiro
BR
20,045,337
BRL
Line-by-line
Enel Brasil SA
Enel X Way Srl
20.00%
80.00%
96.45%
Enel X Way Canada Holding
Ltd
Vancouver
CA
-
CAD
Line-by-line
Enel X Way Srl
100.00%
100.00%
Enel X Way Chile SpA
Santiago de Chile CL
14,229,030,071
CLP
Line-by-line
Enel X Way Colombia SAS
Bogotá
CO
15,036,000,000
COP
Line-by-line
Enel Chile SA
Enel X Way Srl
Enel Colombia SA
ESP
49.00%
51.00%
40.00%
Enel X Way Srl
60.00%
82.81%
78.87%
Enel X Way France SAS
Paris
Enel X Way Germany GmbH
Berlin
Enel X Way Italia Srl
Rome
FR
DE
IT
6,101,000
EUR
Line-by-line
Enel X Way Srl
100.00%
100.00%
25,000
EUR
Line-by-line
Enel X Way Srl
100.00%
100.00%
5,000,000
EUR
Line-by-line
Enel X Way Srl
100.00%
100.00%
Enel X Way México SA de Cv Mexico City
MX
6,479,171
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
0.00%
Enel X Way Srl
100.00%
100.00%
Enel X Way North America
Inc.
San Carlos
US
-
USD
Line-by-line
Enel X Way Srl
100.00%
100.00%
Enel X Way Perú SAC
Lima
PE
1,561,900
SOL
Line-by-line
Enel Perú SAC
Enel X Way Srl
20.00%
80.00%
96.45%
Enel X Way Srl
Rome
Enel X Way UK Limited
London
Enel X Way USA LLC
San Carlos
Enel X Wood St. Project LLC
Boston
Enel X Woodland Solar
Project LLC
Enelpower Contractor and
Development Saudi Arabia
Ltd
Boston
Riyadh
IT
GB
US
US
US
SA
6,026,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
1
-
-
-
GBP
USD
USD
USD
Line-by-line
Enel X Way Srl
100.00%
100.00%
Line-by-line
Enel X Way North
America Inc.
100.00%
100.00%
Line-by-line
Enel X Finance
Partner LLC
100.00%
100.00%
Line-by-line
Enel X Project MP
Holdings LLC
100.00%
100.00%
5,000,000
SAR
Line-by-line
Enelpower Srl
51.00%
51.00%
Enelpower do Brasil Ltda
Rio de Janeiro
BR
5,689,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Enelpower Srl
Milan
IT
2,000,000
EUR
Line-by-line
Enel SpA
100.00%
100.00%
Energética Monzón SAC
San Miguel
PE
118,321,846
SOL
Held for sale
Enel Generación
Perú SAA
100.00%
Enel Perú SAC
0.00%
71.54%
512 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Energía Base Natural SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Energía Ceuta XXI
Comercializadora de
Referencia SAU
Ceuta
ES
65,000
EUR
Line-by-line
Endesa Energía SAU
100.00%
70.12%
Energía Eólica Ábrego SLU
Madrid
ES
3,576
EUR
Line-by-line
Energía Eólica Galerna SLU
Madrid
ES
3,413
EUR
Line-by-line
Energía Eólica Gregal SLU
Madrid
ES
3,250
EUR
Line-by-line
Energía Global de México
(Enermex) SA de Cv
Energía Limpia de Amistad
SA de Cv
Energía Limpia de Palo Alto
SA de Cv
Energía Limpia de Puerto
Libertad S de RL de Cv
Mexico City
MX
50,000
MXN
Line-by-line
Mexico City
MX
33,452,769
MXN
Mexico City
MX
673,583,489
MXN
Equity
Equity
Mexico City
MX
2,953,980
MXN
Line-by-line
Energía Marina SpA
Santiago de Chile CL
2,404,240,000
CLP
Equity
Energía Neta Sa Caseta
Llucmajor SLU
Palma de Mallorca ES
9,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
SpA
99.00%
99.00%
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
México S de RL de Cv
0.01%
Enel Rinnovabile SA
de Cv
99.99%
100.00%
Enel Green Power
Chile SA
25.00%
16.23%
Enel Green Power
España SLU
100.00%
70.12%
Energía XXI Comercializadora
de Referencia SLU
Madrid
Energía y Naturaleza SLU
Madrid
ES
ES
2,000,000
EUR
Line-by-line
Endesa Energía SAU
100.00%
70.12%
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Energías Alternativas del
Sur SL
Las Palmas de
Gran Canaria
ES
546,919
EUR
Line-by-line
Enel Green Power
España SLU
54.95%
38.53%
Energía de Aragón I SLU
Zaragoza
ES
3,200,000
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Energía de Graus SL
Zaragoza
ES
1,298,160
EUR
Line-by-line
Energías Especiales de
Careón SA
Santiago de
Compostela
ES
270,450
EUR
Line-by-line
Energías Especiales del Alto
Ulla SAU
Energías Especiales del
Bierzo SA
Madrid
ES
9,210,840
EUR
Line-by-line
Torre del Bierzo
ES
1,635,000
EUR
Equity
Energías Limpias de
Carmona SL
Seville
ES
7,000
EUR
Equity
Energías Renovables La Mata
SA de Cv
Mexico City
MX
3,011,133,575
MXN
Line-by-line
Enel Green Power
España SLU
66.67%
46.74%
Enel Green Power
España SLU
97.00%
68.01%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
50.00%
35.06%
Enviatos Promoción
I SLU
6.25%
Enviatos Promoción
II SLU
6.25%
13.15%
Enviatos Promoción
III SLU
6.25%
Enel Green Power
México S de RL de Cv
99.50%
Enel Rinnovabile SA
de Cv
0.50%
100.00%
Energie Electrique de
Tahaddart SA
Tangiers
MA
306,160,000
MAD
Energotel AS
Bratislava
SK
2,191,200
EUR
Equity
-
Endesa Generación
SAU
32.00%
22.44%
Slovenské elektrárne
AS
20.00%
6.60%
Attachments
513
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Energy Podium Private
Company
Energy Response Holdings
(Pty) Ltd
Katerini Pieria
GR
4,001
EUR
-
Melbourne
AU
52,128,517
AUD
Line-by-line
Enel Green Power
Hellas Supply Single
Member SA
Enel X Australia
Holding (Pty) Ltd
0.02%
0.01%
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
EnergyQ1BESS Srl
Rome
EnerNOC GmbH
Munich
EnerNOC Ireland Limited
Dublin
IT
DE
IE
10,000
EUR
Line-by-line
25,000
10,589
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
GBP
Line-by-line
Enel X UK Limited
100.00%
100.00%
Enigma Green Power 1 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Entech Utility Service Bureau
Inc.
Lutherville
US
1,500
USD
Line-by-line
Enviatos Promoción I SLU
Madrid
ES
3,000
EUR
Line-by-line
Enviatos Promoción II SLU
Madrid
ES
3,000
EUR
Line-by-line
Enviatos Promoción III SLU
Madrid
ES
3,000
EUR
Line-by-line
Enviatos Promoción XX SLU
Madrid
ES
3,000
EUR
Line-by-line
Eojin Wind Power Co. Ltd
Seoul
KR
301,000,000
KRW
Line-by-line
Eólica Valle del Ebro SA
Zaragoza
ES
3,561,343
EUR
Line-by-line
Eólica Zopiloapan SA de Cv
Mexico City
MX
1,877,201,544
MXN
Line-by-line
Eólicas de Agaete SL
Eólicas de Fuencaliente SA
Las Palmas de
Gran Canaria
Las Palmas de
Gran Canaria
ES
240,400
EUR
Line-by-line
ES
216,360
EUR
Line-by-line
Eólicas de Fuerteventura AIE
Puerto del
Rosario
ES
4,558,427
EUR
Eólicas de la Patagonia SA
Buenos Aires
AR
480,930
ARS
ES
1,758,226
EUR
ES
420,708
EUR
Eólicas de Lanzarote SL
Eólicas de Tenerife AIE
Eólicos de Tirajana SL
Las Palmas de
Gran Canaria
Santa Cruz de
Tenerife
Las Palmas de
Gran Canaria
Epresa Energía SA
Puerto Real
Equity
Equity
Equity
Equity
Enel X North America
Inc.
100.00%
100.00%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
SpA
100.00%
100.00%
Enel Green Power
España SLU
50.50%
35.41%
Enel Green Power
México S de RL de Cv
56.98%
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
España SLU
100.00%
43.02%
80.00%
56.09%
Enel Green Power
España SLU
55.00%
38.56%
Enel Green Power
España SLU
40.00%
28.05%
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
40.00%
28.05%
Enel Green Power
España SLU
50.00%
35.06%
ES
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
60.00%
42.07%
2,500,000
EUR
Equity
Endesa SA
50.00%
35.06%
Ermis 2 Energeiaki Private
Company
Grevena
GR
1,002
EUR
Equity
E-Solar 2 Srl
Rome
IT
2,500
EUR
Line-by-line
Enel Green Power
Hellas SA
0.10%
0.05%
Enel Green Power
Italia Srl
100.00%
100.00%
514 Integrated Annual Report 2023
Enel Green Power
Italia Srl
100.00%
100.00%
Nareva Enel Green
Power Morocco SA
70.00%
35.00%
EGP North America
PPA LLC
100.00%
100.00%
Enel Global Trading
SpA
2.38%
2.38%
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
E-Solar Srl
Rome
IT
2,500
EUR
Line-by-line
Essaouira Wind Farm
Casablanca
MA
300,000
MAD
Equity
Estonian Solar PPA LLC
Andover
European Energy Exchange
AG
Leipzig
EV Gravitational Energy
Storage LLC
Andover
US
DE
US
1
USD
Line-by-line
40,050,000
EUR
-
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Evacuación Carmona 400-
220 kV Renovables SL
Seville
ES
10,003
EUR
Equity
Enviatos Promoción
I SLU
3.13%
Enviatos Promoción
II SLU
3.13%
6.58%
Enviatos Promoción
III SLU
3.13%
Evolution Wind Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Ewiva Srl
Milan
Expedition Solar Project LLC
Andover
Explorer Solar Project LLC
Andover
Explorer Wind Project LLC
Andover
IT
US
US
US
1,000,000
EUR
Equity
Enel X Way Srl
50.00%
50.00%
1
1
1
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%
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
Costanera SA
Explotaciones Eólicas Sierra
la Virgen SA
Zaragoza
ES
3,505,000
EUR
Line-by-line
Zaragoza
ES
3,230,000
EUR
Line-by-line
Zaragoza
ES
100,000
EUR
Line-by-line
Zaragoza
ES
5,488,500
EUR
Line-by-line
Zaragoza
ES
8,046,800
EUR
Line-by-line
Zaragoza
ES
4,200,000
EUR
Line-by-line
Enel Green Power
España SLU
70.00%
49.08%
Enel Green Power
España SLU
73.60%
51.61%
Enel Green Power
España SLU
51.00%
35.76%
Enel Green Power
España SLU
65.00%
45.58%
Enel Green Power
España SLU
90.00%
63.10%
Enel Green Power
España SLU
90.00%
63.10%
Falls Park Energy Storage
Project LLC
Andover
Farrier Station Energy
Storage Project LLC
Andover
Fayette Solar I LLC
Andover
US
US
US
1
1
1
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
Brick Road Solar
Holdings LLC
100.00%
100.00%
Fazenda Aroeira
Empreendimento de Energia
Ltda
Rio de Janeiro
BR
2,362,046
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Fence Post Solar Holdings
LLC
Andover
Fence Post Solar Project LLC Andover
US
US
1
-
USD
USD
Line-by-line
Enel Green Power
Fence Post Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Fence Post Solar
Holdings LLC
100.00%
100.00%
Fenner Wind Holdings LLC
Dover
US
100
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Attachments
515
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Field Day Solar Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Finocchiara Solar Srl
Rome
Finsec Lab Ltd
Tel Aviv
Flagpay Srl
Milan
IT
IL
IT
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
100
ILS
Held for sale
Enel X Srl
30.00%
30.00%
10,000
EUR
Equity
Mooney SpA
100.00%
50.00%
Flat Rock Wind Project LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Flat Rocks Girgarre Cohuna
Finco (Pty) Ltd
Sydney
AU
120
AUD
Equity
Flat Rocks One Wind Farm
(Pty) Ltd
Flat Rocks One Wind Farm
Trust
Sydney
AU
100
AUD
Sydney
AU
100
AUD
Equity
Equity
Cohuna Solar Farm
Trust
33.33%
Flat Rocks One Wind
Farm Trust
33.33%
50.00%
Girgarre Solar Farm
Trust
33.33%
Enel Green Power
Flat Rocks One
Holding (Pty) Ltd
Enel Green Power
Flat Rocks One
Holding Trust
100.00%
50.00%
100.00%
50.00%
Flat Top Solar Project LLC
Andover
Flint Rock Solar Project LLC
Andover
US
US
Florence Hills LLC
Minneapolis
US
Flowing Spring Farms LLC
Andover
US
-
-
-
1
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Fontibón ZE SAS
Bogotá
CO
434,359,750
COP
Equity
Bogotá ZE SAS
100.00%
9.44%
Fótons de Santo Anchieta
Energias Renováveis SA
Rio de Janeiro
BR
577,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Fotovoltaica Yunclillos SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
1
1
1
-
USD
USD
USD
USD
Fourmile Wind Project LLC
Andover
Fox Run Energy Project LLC
Andover
Franklintown Farm LLC
Andover
US
US
US
Freedom Energy Storage LLC Andover
US
Front Marítim del Besòs SL
Barcelona
Frontiersman Solar Project
LLC
Andover
ES
US
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 Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
Endesa Generación
SAU
100.00%
100.00%
61.37%
43.03%
9,000
EUR
Equity
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
FRV Corchitos I SLU
Madrid
ES
75,800
EUR
Line-by-line
FRV Corchitos II Solar SLU
Madrid
ES
22,000
EUR
Line-by-line
FRV Gibalbín - Jerez SLU
Madrid
ES
23,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
516 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
FRV Tarifa SLU
Madrid
ES
3,000
EUR
Line-by-line
FRV Villalobillos SLU
Madrid
ES
3,000
EUR
Line-by-line
FRV Zamora Solar 1 SLU
Madrid
ES
3,000
EUR
Line-by-line
FRV Zamora Solar 3 SLU
Madrid
ES
3,000
EUR
Line-by-line
FRWF Stage 1 (Pty) Ltd
Sydney
AU
100
AUD
Equity
Fundamental Recognized
Systems SLU
Andorra
ES
3,000
EUR
Line-by-line
Furatena Solar 1 SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
Enel Green Power
Ganado Solar
Holdings LLC
100.00%
70.12%
100.00%
100.00%
Ganado Solar Holdings LLC
Andover
Ganado Solar LLC
Andover
Ganado Storage LLC
Andover
US
US
US
1
-
1
USD
USD
USD
Line-by-line
Line-by-line
Ganado Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Garob Wind Farm (RF)
(Pty) Ltd
Gas y Electricidad
Generación SAU
Johannesburg
ZA
100
ZAR
Equity
Palma de Mallorca ES
213,775,700
EUR
Line-by-line
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
27.50%
Endesa Generación
SAU
100.00%
70.12%
Gauley Hydro LLC
Wilmington
US
Gauley River Management
LLC
Willison
US
-
1
USD
USD
Equity
GRPP Holdings LLC
100.00%
50.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Generadora de Occidente SA Guatemala City
GT
16,262,000
GTQ
Line-by-line
Generadora Montecristo SA Guatemala City
GT
3,820,000
GTQ
Line-by-line
Enel Colombia SA
ESP
99.00%
Enel Guatemala SA
1.00%
Enel Colombia SA
ESP
100.00%
Enel Guatemala SA
0.00%
47.18%
47.18%
Generadora Solar Austral SA
Panama City
PA
10,000
USD
Line-by-line
Enel Panamá CAM Srl
100.00%
47.19%
Generadora Solar de
Occidente SA
Generadora Solar El Puerto
SA
Panama City
PA
10,000
USD
Line-by-line
Enel Panamá CAM Srl
100.00%
47.19%
Panama City
PA
10,000
USD
Line-by-line
Enel Panamá CAM Srl
100.00%
47.19%
Geotérmica del Norte SA
Santiago de Chile CL
326,577,419,702
CLP
Line-by-line
Gibson Bay Wind Farm (RF)
(Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Line-by-line
Girgarre Solar Farm (Pty) Ltd
Sydney
AU
-
AUD
Girgarre Solar Farm Trust
Sydney
AU
10
AUD
Equity
Equity
Enel Green Power
Chile SA
84.59%
54.92%
Enel Green Power
South Africa (Pty) Ltd
60.00%
60.00%
Enel Green Power
Girgarre Holdings
(Pty) Ltd
Enel Green Power
Girgarre Trust
100.00%
50.00%
100.00%
50.00%
Glass Top Solar Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Global Commodities
Holdings Limited
London
GB
4,042,375
GBP
-
Enel Global Trading
SpA
4.68%
4.68%
Attachments
517
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Globyte SA
San José
CR
910,000
CRC
-
Gloucester Solar I LLC
Andover
US
1
USD
Line-by-line
GNL Chile SA
Santiago de Chile CL
3,026,160
USD
Equity
Enel Costa Rica
CAM SA
10.00%
4.72%
Brick Road Solar
Holdings LLC
Enel Generación
Chile SA
100.00%
100.00%
33.33%
20.25%
Golden Terrace Solar Project
LLC
Andover
US
Goodwell Wind Project LLC Wilmington
US
Goose Foot Energy Storage
Project LLC
Andover
Gooseneck Solar Project LLC Andover
US
US
1
-
1
1
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Origin Goodwell
Holdings LLC
100.00%
10.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Gorona del Viento El Hierro
SA
Santa Cruz de
Tenerife
ES
30,936,736
EUR
Equity
Unión Eléctrica de
Canarias Generación
SAU
23.21%
16.28%
Grand Prairie Solar Project
LLC
Andover
US
-
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Gridspertise Iberia SL
Madrid
ES
3,000
EUR
Equity
Gridspertise Srl
100.00%
50.00%
Gridspertise India Private
Limited
Gurugram
IN
19,759,130
INR
Equity
Gridspertise Srl
100.00%
50.00%
Gridspertise Latam SA
São Paulo
BR
2,010,000
BRL
Equity
Enel Brasil SA
0.00%
Gridspertise Srl
100.00%
50.00%
Gridspertise Srl
Rome
IT
7,500,000
EUR
Equity
Enel Grids Srl
50.00%
50.00%
Gridspertise LLC
Dover
US
160,000
USD
Equity
Gridspertise Srl
100.00%
50.00%
Grineo Gestión Circular SL
Ponferrada
ES
3,000
EUR
GRPP Holdings LLC
Andover
US
2
USD
Equity
Equity
Endesa Generación
SAU
35.00%
24.54%
EGPNA REP Holdings
LLC
50.00%
50.00%
Guadarranque Solar 4 SLU
Seville
ES
3,006
EUR
Line-by-line
Guayepo Solar SAS
Bogotá
CO
1,000,000
COP
Line-by-line
Guir Wind Farm
Casablanca
MA
10,000
MAD
Line-by-line
Endesa Generación
II SAU
100.00%
70.12%
Enel Colombia SA
ESP
100.00%
47.18%
Enel Green Power
Morocco Sàrl
99.90%
99.90%
GulfStar Power LLC
Andover
Gusty Hill Wind Project LLC
Andover
US
US
Hadley Ridge LLC
Minneapolis
US
Hamilton County Solar
Project LLC
Andover
Hamlet Mill Storage Project
LLC
Andover
Hansborough Valley Solar
Project LLC
Andover
US
US
US
1
1
-
1
1
-
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
Chi Minnesota Wind
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
Enel Kansas LLC
100.00%
100.00%
518 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Harmony Plains Solar I LLC
Andover
US
Hastings Solar LLC
Wilmington
US
Heartland Farms Wind
Project LLC
Wilmington
US
1
-
1
USD
USD
USD
Hellas Res Holdings Single
Member Societe Anonyme
Maroussi
GR
478,746,698
EUR
Hella Res Societe Anonyme
Maroussi
GR
491,738,436
EUR
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Equity
Hella Res Societe
Anonyme
100.00%
50.00%
Enel Green Power
SpA
50.00%
50.00%
Hidroeléctrica de Catalunya
SLU
Barcelona
ES
126,210
EUR
Line-by-line
Endesa SA
100.00%
70.12%
Hidroeléctrica de Ourol SL
A Coruña
ES
1,608,200
EUR
Equity
Hidroelectricidad del Pacífico
S de RL de Cv
Colima
MX
100,000,000,000
MXN
Line-by-line
Hidroflamicell SL
Barcelona
ES
78,120
EUR
Line-by-line
Hidroinvest SA
Buenos Aires
AR
55,312,093
ARS
Line-by-line
HIF H2 SpA
Santiago de Chile CL
6,303,000
USD
Equity
Enel Green Power
España SLU
30.00%
21.03%
Enel Green Power
México S de RL de Cv
99.99%
99.99%
Hidroeléctrica de
Catalunya SLU
75.00%
52.59%
Enel Américas SA
41.94%
79.55%
Enel Argentina SA
54.76%
Enel Green Power
Chile SA
50.00%
32.46%
High Chaparral Solar Project
LLC
Andover
High Lonesome Storage LLC Andover
US
US
-
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
High Lonesome Wind
Holdings LLC
High Lonesome Wind Power
LLC
Wilmington
US
100
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Boston
US
100
USD
Line-by-line
High Lonesome Wind
Holdings LLC
100.00%
100.00%
High Noon Solar Project LLC
Andover
High Street Corporation
(Pty) Ltd
Melbourne
US
AU
-
2
USD
AUD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Enel Green Power
Australia (Pty) Ltd
100.00%
50.00%
Hilltopper Wind Holdings LLC Wilmington
US
1,000
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Hispano Generación de
Energía Solar SL
Jerez de los
Caballeros
ES
3,500
EUR
Line-by-line
Enel Green Power
España SLU
51.00%
35.76%
Honey Stone Solar Project
LLC
Andover
Honeybee Solar Project LLC
Andover
US
US
Hope Creek LLC
Crestview
US
Hope Ridge Wind Project
LLC
Andover
Horse Run Solar I LLC
Andover
Horse Wrangler Solar Project
LLC
Andover
US
US
US
-
-
-
1
1
1
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
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
Enel Kansas LLC
100.00%
100.00%
Attachments
519
Company name
Headquarters
Country
Share capital
Currency
Segment
Hubject GmbH
Berlin
Ice Tudela SL
Pozuelo de
Alarcón
DE
ES
65,943
EUR
3,000
EUR
Consolidation
method
Held by
% holding
Group %
holding
-
-
Enel X Way Srl
12.50%
12.50%
Enel Green Power
España SLU
5.12%
3.59%
Idalia Park Solar Project LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Idrosicilia SpA
Milan
IT
22,520,000
EUR
Equity
Enel SpA
1.00%
1.00%
IIK Energía de Dzemul SA
de Cv
Mexico City
MX
6,204,259
MXN
Line-by-line
Ilary Energia Srl
Rome
IT
10,000
EUR
Line-by-line
Impofu Cluster Investment
SPV (RF) (Pty) Ltd
Gauteng
ZA
2,000,000
ZAR
Equity
Infinitesun Srl
Rome
IT
10,000
EUR
Line-by-line
Infraestructura de
Evacuación Peñaflor 220
kV SL
Infraestructuras Puerto Santa
María 220 SL
Infraestructuras San Serván
220 SL
Infraestructuras San Serván
Set 400 SL
Ingwe Solar Power Plant (RF)
(Pty) Ltd
Inkolan Información y
Coordinación de Obras AIE
Instalaciones San Serván II
400 SL
Madrid
ES
3,500
EUR
Equity
Madrid
ES
3,000
EUR
Line-by-line
Madrid
ES
12,000
EUR
Equity
Madrid
ES
90,000
EUR
Equity
Gauteng
ZA
1,000
ZAR
Line-by-line
Bilbao
ES
84,142
EUR
-
Madrid
ES
11,026
EUR
Equity
International Multimedia
University Srl in bankruptcy
-
IT
24,000
EUR
Ipsomata DPGU Private
Company
Heraklion, Crete
GR
5,000
EUR
-
-
Enel Green Power
México S de RL de Cv
0.00%
Enel Rinnovabile SA
de Cv
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Italia Srl
Enel Green Power
SpA
Enel Green Power
España SLU
100.00%
50.00%
96.74%
3.26%
100.00%
41.14%
28.85%
Puerto Santa María
Energía I SLU
Puerto Santa María
Energía II SLU
50.00%
50.00%
70.12%
Enel Green Power
España SLU
30.80%
21.60%
Aranort Desarrollos
SLU
6.41%
Baylio Solar SLU
6.41%
13.48%
Furatena Solar 1 SLU
6.41%
Enel Green Power
SpA
100.00%
100.00%
Edistribución Redes
Digitales SLU
14.29%
10.02%
Aranort Desarrollos
SLU
7.94%
Baylio Solar SLU
7.94%
16.69%
Furatena Solar 1 SLU
7.94%
Enel Italia SpA
13.04%
13.04%
Enel Green Power
Hellas SA
0.02%
0.02%
Iris Bloom Solar Project LLC
Andover
Iron Belt Energy Storage
Project LLC
Andover
Iron Bull Solar Project LLC
Andover
US
US
US
1
1
1
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%
Isamu Ikeda Energia SA
Niterói
BR
16,474,476
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Italgest Energy (Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Line-by-line
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
520 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Jack River LLC
Minneapolis
US
Jackrabbit Energy Storage
Project LLC
Andover
US
-
1
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Jade Energia Ltda
Rio de Janeiro
BR
4,107,097
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Jaguito Solar 10 MW SA
Panama City
PA
10,000
USD
Line-by-line
Enel Panamá CAM Srl
100.00%
47.19%
Jessica Mills LLC
Minneapolis
US
Julia Hills LLC
Minneapolis
US
Junia Insurance Srl
Mosciano
Sant’Angelo
Juniper Canyon Energy
Storage Project LLC
Andover
Keeneys Creek Solar I LLC
Andover
IT
US
US
-
-
USD
USD
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
10,000
EUR
Equity
Mooney Group SpA
100.00%
50.00%
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Ken Renewables India Private
Limited
Gurugram
IN
12,100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
King Branch Solar I LLC
Andover
US
Kingston Energy Storage LLC Wilmington
US
1
-
USD
USD
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%
Kino Contractor SA de Cv
Mexico City
MX
1,000,100
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
100.00%
Enel Rinnovabile SA
de Cv
0.00%
100.00%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Knickerbocker Energy
Storage Project LLC
Kokkinari DPGU Private
Company
Heraklion, Crete
GR
15,000
EUR
Korea Line Corporation
Seoul
KR
122,132,520,000
KRW
Koukos Energy Private
Company
Athens
GR
4,003
EUR
-
-
-
Enel Green Power
Hellas SA
0.01%
0.01%
Enel Global Trading
SpA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Supply Single
Member SA
Endesa Medios y
Sistemas SLU
0.25%
0.25%
0.07%
0.02%
0.01%
29.26%
20.52%
Kromschroeder SA
L’Hospitalet de
Llobregat
Kutlwano Solar Power Plant
(RF) (Pty) Ltd
Gauteng
ES
ZA
Lake Emily Solar LLC
Wilmington
US
Lake Pulaski Solar LLC
Wilmington
US
Land Run Solar Project LLC
Andover
US
627,126
EUR
Equity
1,000
ZAR
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
-
-
1
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
Enel Kansas LLC
100.00%
100.00%
Land Run Wind Project LLC
Dover
US
100
USD
Line-by-line
Sundance Wind
Project LLC
100.00%
100.00%
Attachments
521
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Lantana Springs Hydrogen
Project LLC
Andover
Lantern Trail Solar Project
LLC
Andover
Lariat Energy Storage Project
LLC
Andover
Lasso Solar Project LLC
Andover
US
US
US
US
1
1
1
1
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Latamsolar Energías
Renovables SAS
Latamsolar Fotovoltaica
Fundación SAS
Latamsolar Fotovoltaica
Sahagun SAS
Bogotá
CO
8,000,000
COP
Line-by-line
Bogotá
CO
8,000,000
COP
Line-by-line
Bogotá
CO
8,000,000
COP
Line-by-line
Enel Colombia SA
ESP
100.00%
47.18%
Enel Colombia SA
ESP
100.00%
47.18%
Enel Colombia SA
ESP
100.00%
47.18%
Lathrop Solar I LLC
Andover
Lava Solar Project LLC
Andover
US
US
Lawrence Creek Solar LLC
Minneapolis
US
Layerx Security Ltd
Tel Aviv
Lebanon Solar I LLC
Andover
IL
US
Legacy Blossom Storage
Project Limited Partnership
Calgary
CA
Lemonade Solar Project LLC
Andover
US
1
1
-
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%
20,112
ILS
-
Finsec Lab Ltd
3.00%
0.90%
1
-
-
USD
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
CAD
Line-by-line
Enel Alberta Storage
Inc.
0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Lerato Solar Power Plant (RF)
(Pty) Ltd
Gauteng
ZA
1,000
ZAR
Line-by-line
Liberty Energy Storage LLC
Andover
US
-
USD
Line-by-line
Enel Green Power
SpA
100.00%
100.00%
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
Libra Flexsys Srl
Rome
Light Cirrus Solar Project LLC Andover
Lily Solar Holdings LLC
Andover
Lily Solar LLC
Andover
LY
IT
US
US
US
Lindahl Wind Holdings LLC
Wilmington
US
Lindahl Wind Project LLC
Wilmington
US
Little Elk Wind Holdings LLC Wilmington
US
1,350,000
EUR
-
Enelpower Srl
0.33%
0.33%
10,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
1
1
-
-
-
-
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Green Power Lily
Solar Holdings LLC
100.00%
100.00%
Line-by-line
Lily Solar Holdings
LLC
100.00%
100.00%
Line-by-line
EGPNA Preferred
Wind Holdings LLC
100.00%
100.00%
Line-by-line
Lindahl Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
522 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Little Elk Wind Project LLC
Wilmington
US
Little Salt Solar Project LLC
Andover
US
Litus Energy Storage LLC
Andover
US
Lone Pine Wind Inc.
Alberta
Lone Pine Wind Project LP
Alberta
CA
CA
-
-
-
-
-
USD
USD
USD
CAD
CAD
Lucas Sostenible SL
Madrid
ES
1,099,775
EUR
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Little Elk Wind
Holdings 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)
100.00%
100.00%
-
Equity
Equity
Enel Green Power
Canada Inc.
10.00%
10.00%
Enel Green Power
Canada Inc.
10.00%
10.00%
Enel Green Power
España SLU
35.29%
24.74%
Luminary Highlands Solar
Project LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Luz de Angra Energia SA
Rio de Janeiro
BR
14,304,790
BRL
Line-by-line
Enel X Brasil SA
51.00%
41.96%
Luz de Caruaru Energia SA
Rio de Janeiro
BR
21,027,600
BRL
Line-by-line
Enel X Brasil SA
51.00%
41.96%
Luz de Cataguases SA
Cataguases
BR
4,800,000
BRL
Line-by-line
Enel X Brasil SA
60.00%
49.36%
Luz de Caxias do Sul SA
Rio de Janeiro
BR
31,017,000
BRL
Line-by-line
Enel X Brasil SA
80.00%
65.82%
Luz de Itanhaém SA
Itanhaém
BR
22,700,000
BRL
Line-by-line
Enel X Brasil SA
60.00%
49.36%
Luz de Jaboatão Energia SA
Rio de Janeiro
BR
21,114,200
BRL
Line-by-line
Enel X Brasil SA
51.00%
41.96%
Luz de Macapá Energia SA
Rio de Janeiro
BR
24,338,000
BRL
Line-by-line
Enel X Brasil SA
51.00%
41.96%
Luz de Ponta Grossa SA
Rio de Janeiro
BR
17,889,000
BRL
Line-by-line
Enel X Brasil SA
80.00%
65.82%
Maicor Wind Srl
Rome
Mansar Renewable Energy
Private Limited
Gurgaon
Maple Canada Solutions
Holdings Ltd
Maple Energy Solutions LP
-
-
Maple Run Solar Project LLC
Andover
IT
IN
CA
CA
US
20,850,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
-
-
1
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%
María Renovables SL
Zaragoza
ES
3,000
EUR
Equity
Marshoy Energy Advisory
Services Private Limited
Mumbai
Marte Srl
Rome
Marudhar Wind Energy
Private Limited
Gurugram
IN
IT
IN
313,709,000
INR
Line-by-line
6,100,000
EUR
Line-by-line
100,000
INR
Line-by-line
Más Energía S de RL de Cv
Mexico City
MX
61,873,926
MXN
Line-by-line
Enel Green Power
España SLU
45.36%
31.80%
Enel X Advisory
Services Srl
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
India Private Limited
100.00%
100.00%
Enel Green Power
México S de RL de Cv
66.67%
Enel Rinnovabile SA
de Cv
33.33%
100.00%
Attachments
523
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Mason Jar Solar Project LLC
Andover
US
Mason Mountain Wind
Project LLC
Wilmington
US
1
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Padoma Wind Power
LLC
100.00%
100.00%
Matrigenix (Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Line-by-line
Maty Energia Srl
Rome
IT
10,000
EUR
Line-by-line
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
Enel Green Power
Italia Srl
100.00%
100.00%
MC Solar I LLC
Andover
US
McBride Wind Project LLC
Wilmington
US
Merit Wind Project LLC
Andover
US
Metro Wind LLC
Minneapolis
US
-
1
1
-
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Mexicana de
Hidroelectricidad Mexhidro S
de RL de Cv
Mexico City
MX
181,728,901
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
99.99%
99.99%
Mibgas SA
Madrid
ES
3,000,000
EUR
-
Endesa SA
1.35%
0.95%
Midelt Wind Farm SA
Casablanca
MA
145,000,000
MAD
Equity
Nareva Enel Green
Power Morocco SA
70.00%
35.00%
Millstone Junction Solar
Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Minglanilla Renovables 400
kV AIE
Valencia
ES
-
EUR
Proportional
Minicentrales Acequia Cinco
Villas AIE
Ejea de los
Caballeros
ES
3,346,993
EUR
Minicentrales del Canal de las
Bárdenas AIE
Ejea de los
Caballeros
ES
1,202,000
EUR
-
-
Minicentrales del Canal
Imperial-Gallur SL
Zaragoza
ES
1,820,000
EUR
Equity
Mira Energy (Pty) Ltd
Johannesburg
ZA
100
ZAR
Line-by-line
Energía Base Natural
SLU
4.79%
Energía Eólica
Ábrego SLU
Energía Eólica
Galerna SLU
7.98%
9.31%
25.36%
Energía Eólica Gregal
SLU
9.31%
Energía y Naturaleza
SLU
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%
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
Miranda Plataforma Logística
SA
Miranda de Ebro
ES
1,800,000
EUR
-
Nuclenor SA
0.22%
0.08%
MO Land Holdings 1358 LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Monte Reina Renovables SL
Madrid
ES
4,000
EUR
Equity
FRV Zamora Solar
1 SLU
20.58%
14.43%
Montrose Solar LLC
Wilmington
US
Moonbeam Solar Project LLC Andover
US
-
1
USD
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
524 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Mooney Group SpA
Milan
Mooney SpA
Milan
Mooney Servizi SpA
Milan
Morgan Branch Solar I LLC
Andover
Morning Light Energy
Storage Project LLC
Andover
Mount Pleasant Energy
Storage 1 LLC
Boston
Mountrail Wind Project LLC
Andover
MPG Solar I LLC
Andover
Mucho Viento Wind Project
LLC
Andover
Mule Bit Wind Project LLC
Andover
Muskegon County Solar
Project LLC
Andover
Muskegon Green Wind
Project LLC
Andover
Mustang Run Wind Project
LLC
Andover
IT
IT
IT
US
US
US
US
US
US
US
US
US
US
10,050,000
EUR
Equity
Enel X Srl
50.00%
50.00%
87,833,331
EUR
Equity
Mooney Group SpA
100.00%
50.00%
8,549,999
EUR
Equity
Mooney Group SpA
100.00%
50.00%
1
1
-
1
1
1
1
1
1
1
USD
USD
USD
USD
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
Enel X North America
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
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
Tradewind Energy Inc. 100.00%
100.00%
MyCicero Srl
Senigallia
IT
1,142,857
EUR
Equity
Mooney Servizi SpA
30.00%
Pluservice Srl
70.00%
39.50%
Nabb Solar I LLC
Andover
Napolean Wind Project LLC
Andover
US
US
1
1
USD
USD
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
MAD
Equity
Enel Green Power
Morocco Sàrl
50.00%
50.00%
Neugemacht GmbH
Frankfurt
DE
25,000
EUR
Equity
Gridspertise Srl
51.00%
25.50%
Nevkan Renewables LLC
Wilmington
US
New York Distributed
Storage Projects LLC
Boston
US
-
-
USD
USD
Line-by-line
Enel Nevkan Inc.
100.00%
100.00%
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
Ngonye Power Company
Limited
Nojoli Wind Farm (RF) (Pty)
Ltd
Lusaka
ZM
10
ZMW
Held for sale
Johannesburg
ZA
10,000,000
ZAR
Line-by-line
Enel Green Power
Solar Ngonye SpA
(formerly Enel Green
Power Africa Srl)
80.00%
80.00%
Enel Green Power
South Africa (Pty) Ltd
60.00%
60.00%
North English Wind Project
LLC
Andover
North Rock Wind LLC
Andover
Northland Wind Project LLC
Andover
US
US
US
1
1
1
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%
Attachments
525
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Northstar Wind Project LLC
Andover
US
Northwest Hydro LLC
Wilmington
US
-
-
USD
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Chi West LLC
100.00%
100.00%
Wilmington
US
100
USD
Line-by-line
Notch Butte Hydro Company
Inc.
Novolitio Recuperación de
Baterías SL
Ponferrada
ES
180,000
EUR
Nuclenor SA
Valle de Tobalina
ES
5,406,000
EUR
Equity
Equity
Nuove Energie Srl
Porto Empedocle
IT
5,204,029
EUR
Line-by-line
Nxuba Wind Farm (RF)
(Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Equity
Enel Green Power
North America Inc.
100.00%
100.00%
Endesa Generación
SAU
45.00%
31.55%
Endesa Generación
SAU
Enel Global Trading
SpA
50.00%
35.06%
100.00%
100.00%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
51.00%
25.50%
NYC Storage (353 Chester)
SPE LLC
Wilmington
Ochrana A Bezpecnost
Se Sro
Kalná Nad
Hronom
Olathe Solar I LLC
Andover
Old Sport Wind Project LLC
Andover
US
SK
US
US
1
33,194
1
1
USD
EUR
USD
USD
Line-by-line
Equity
Enel X North America
Inc.
Slovenské elektrárne
AS
100.00%
100.00%
100.00%
33.00%
Line-by-line
Brick Road Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Olivum PV Farm 01 SLU
Madrid
ES
3,000
EUR
Line-by-line
Lisbon
PT
2,610,000
EUR
-
Enel Green Power
España SLU
100.00%
70.12%
Endesa Generación
Portugal SA
5.00%
3.51%
OMIP - Operador do
Mercado Ibérico (Portugal)
SGPS SA
Open Range Wind Project
LLC
Operador del Mercado
Ibérico de Energía - Polo
Español SA
Operadora Distrital de
Transporte SAS
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Madrid
ES
1,999,998
EUR
-
Endesa SA
5.00%
3.51%
Bogotá
CO
12,500,000,000
COP
Equity
Enel Colombia SA
ESP
20.00%
9.44%
Orchid Acres Solar Project
LLC
Andover
US
Origin Goodwell Holdings
LLC
Wilmington
US
Origin Wind Energy LLC
Wilmington
US
-
-
-
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Equity
Equity
EGPNA Wind
Holdings 1 LLC
100.00%
10.00%
Origin Goodwell
Holdings LLC
100.00%
10.00%
Osage Wind Holdings LLC
Wilmington
US
100
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Osage Wind LLC
Wilmington
US
Ossining Energy Storage
1 LLC
Boston
Oxagesa AIE in liquidation
Alcañiz
US
ES
-
-
USD
USD
6,010
EUR
Oyster Bay Wind Farm (RF)
(Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Padoma Wind Power LLC
Elida
Painted Rose Solar Project
LLC
Andover
US
US
-
1
USD
USD
Line-by-line
Osage Wind Holdings
LLC
100.00%
100.00%
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
Equity
Equity
Enel Green Power
España SLU
33.33%
23.37%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
27.50%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
526 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Palo Alto Farms Wind Project
LLC
Dallas
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Pampinus PV Farm 01 SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Paradise Creek Wind Project
LLC
Andover
US
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Paravento SL
Paradela
ES
3,006
EUR
Line-by-line
Enel Green Power
España SLU
90.00%
63.10%
Parc Eòlic La Tossa-La Mola
d’en Pascual SL
Madrid
ES
1,183,100
EUR
Parc Eòlic Los Aligars SL
Madrid
ES
1,313,100
EUR
Equity
Equity
Enel Green Power
España SLU
30.00%
21.03%
Enel Green Power
España SLU
30.00%
21.03%
Parco Eolico Monti Sicani Srl
Rome
IT
10,000
EUR
Line-by-line
Parque Amistad II SA de Cv
Mexico City
MX
2,589,177,005
MXN
Line-by-line
Parque Amistad III SA de Cv Mexico City
MX
1,706,287,200
MXN
Line-by-line
Parque Amistad IV SA de Cv Mexico City
MX
2,728,499,160
MXN
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Enel Green Power
México S de RL de Cv
0.50%
Enel Rinnovabile SA
de Cv
99.50%
Enel Green Power
México S de RL de Cv
0.50%
Enel Rinnovabile SA
de Cv
99.50%
Enel Green Power
México S de RL de Cv
0.50%
Enel Rinnovabile SA
de Cv
99.50%
100.00%
100.00%
100.00%
Parque Eólico A Capelada
SLU
Santiago de
Compostela
ES
5,857,704
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Parque Eólico Belmonte SA
Madrid
ES
120,400
EUR
Line-by-line
Parque Eólico BR-1 SA de Cv Mexico City
MX
50,000
MXN
Line-by-line
Parque Eólico Carretera de
Arigana SA
Las Palmas de
Gran Canaria
ES
1,007,000
EUR
Line-by-line
Parque Eólico de Barbanza
SA
Santiago de
Compostela
Parque Eólico de San Andrés
SA
Santiago de
Compostela
ES
3,606,073
EUR
Line-by-line
ES
552,920
EUR
Line-by-line
Parque Eólico de Santa
Lucía SA
Las Palmas de
Gran Canaria
ES
901,500
EUR
Line-by-line
Parque Eólico Finca de
Mogán SA
Santa Cruz de
Tenerife
ES
3,810,340
EUR
Line-by-line
Parque Eólico Montes de las
Navas SA
Madrid
ES
6,540,000
EUR
Line-by-line
Parque Eólico Muniesa SLU
Madrid
ES
3,006
EUR
Line-by-line
Parque Eólico Palmas dos
Ventos Ltda
Salvador
BR
4,096,626
BRL
Line-by-line
Parque Eólico Pampa SA
Buenos Aires
AR
477,139,364
ARS
Line-by-line
Enel Green Power
España SLU
50.17%
35.17%
Enel Green Power
México S de RL de Cv
0.00%
Enel Rinnovabile SA
de Cv
100.00%
25.50%
Enel Green Power
España SLU
80.00%
56.09%
Enel Green Power
España SLU
75.00%
52.59%
Enel Green Power
España SLU
Enel Green Power
España SLU
Parque Eólico de
Santa Lucía SA
Enel Green Power
España SLU
82.00%
57.50%
65.67%
1.00%
46.51%
90.00%
63.10%
Enel Green Power
España SLU
75.50%
52.94%
Enel Green Power
España SLU
100.00%
70.12%
Enel Brasil SA
100.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
82.27%
0.00%
100.00%
100.00%
Attachments
527
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Parque Eólico Punta de
Teno SA
Santa Cruz de
Tenerife
ES
528,880
EUR
Line-by-line
Enel Green Power
España SLU
52.00%
36.46%
Parque Eólico Sierra del
Madero SA
Madrid
ES
7,193,970
EUR
Line-by-line
Parque Salitrillos SA de Cv
Mexico City
MX
100
MXN
Equity
Parque Solar Cauchari IV SA
San Salvador de
Jujuy
AR
500,000
ARS
Line-by-line
Parque Solar Don José SA
de Cv
Parque Solar Villanueva Tres
SA de Cv
Mexico City
MX
100
MXN
Mexico City
MX
306,024,631
MXN
Equity
Equity
Parque Talinay Oriente SA
Santiago de Chile CL
66,092,165,173
CLP
Line-by-line
Enel Green Power
España SLU
58.00%
40.67%
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
60.80%
20.00%
Enel Green Power
Argentina
100.00%
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
Enel Green Power
SpA
60.91%
39.09%
78.64%
Pastis - Centro Nazionale per
la ricerca e lo sviluppo dei
materiali SCPA in liquidation
Brindisi
IT
2,065,000
EUR
-
Enel Italia SpA
1.14%
1.14%
Paynesville Solar LLC
Wilmington
US
-
USD
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
PayTipper Network Srl
Cascina
PDP Technologies Ltd
Kfar Saba
IT
IL
40,000
EUR
Equity
Mooney SpA
100.00%
50.00%
1,129,252
ILS
-
Enel Grids Srl
4.75%
4.75%
Pearl Star Wind Limited
Partnership
Pebble Stream Solar Project
LLC
Calgary
CA
100
CAD
Line-by-line
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Pegop - Energia Eléctrica SA Pego
PT
50,000
EUR
Equity
PH Chucás SA
San José
CR
100,000
CRC
Line-by-line
PH Don Pedro SA
San José
CR
100,001
CRC
Line-by-line
PH Río Volcán SA
San José
CR
100,001
CRC
Line-by-line
Endesa Generación
Portugal SA
0.02%
Endesa Generación
SAU
49.98%
35.06%
Enel Costa Rica
CAM SA
65.00%
30.67%
Enel Costa Rica
CAM SA
33.44%
Globyte SA
66.54%
Enel Costa Rica
CAM SA
34.32%
Globyte SA
65.66%
18.92%
19.29%
Piebald Hill Energy Storage
Project LLC
Andover
Pike Den Solar Project LLC
Andover
Pilesgrove Solar I LLC
Andover
US
US
US
Pincher Creek LP
Alberta
CA
1
1
1
-
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
Brick Road Solar
Holdings LLC
100.00%
100.00%
CAD
Line-by-line
Enel Green Power
Canada Inc.
Pincher Creek
Management Inc.
Enel Green Power
Canada Inc.
50.50%
1.00%
51.01%
51.00%
51.00%
Aurora Distributed
Solar LLC
100.00%
74.13%
Pincher Creek Management
Inc.
Pine Island Distributed
Solar LLC
Calgary
CA
100
CAD
Line-by-line
Wilmington
US
-
USD
Line-by-line
528 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Playa Flat Energy Storage
Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
450,000
EUR
Equity
Mooney Servizi SpA
70.00%
35.00%
Pluservice Srl
Senigallia
Point Bar Solar Project LLC
Andover
Point Rider Solar Project LLC Andover
Polka Dot Wind Project LLC
Andover
IT
US
US
US
Pomerado Energy Storage
LLC
Wilmington
US
1
-
1
1
USD
USD
USD
USD
PowerCrop Macchiareddu Srl Russi
PowerCrop Russi Srl
Russi
PowerCrop SpA (formerly
PowerCrop Srl)
Russi
IT
IT
IT
100,000
EUR
100,000
EUR
4,000,000
EUR
Prairie Rose Transmission
LLC
Minneapolis
US
Prairie Rose Wind LLC
Albany
US
-
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Equity
Equity
Equity
Equity
Equity
Enel Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
PowerCrop SpA
(formerly PowerCrop
Srl)
PowerCrop SpA
(formerly PowerCrop
Srl)
100.00%
100.00%
100.00%
50.00%
100.00%
50.00%
Enel Green Power
Italia Srl
50.00%
50.00%
Prairie Rose Wind
LLC
100.00%
10.00%
EGPNA REP Wind
Holdings LLC
100.00%
10.00%
Primavera Energia SA
Niterói
BR
36,965,445
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Productive Solar Systems
SLU
Andorra
ES
3,000
EUR
Line-by-line
Productora de Energías SA
Barcelona
ES
60,101
EUR
Equity
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
30.00%
21.03%
Productora Eléctrica
Urgellenca SA
La Seu d’Urgell
ES
8,400,000
EUR
-
Endesa SA
8.43%
5.91%
Progreso Solar 20 MW SA
Panama City
PA
10,000
USD
Line-by-line
Enel Panamá CAM Srl
100.00%
47.19%
Promociones Energéticas del
Bierzo SLU
Madrid
ES
12,020
EUR
Line-by-line
Promotores Mudéjar 400
kV SL
Zaragoza
ES
3,000
EUR
Equity
Proveedora de Electricidad
de Occidente S de RL de Cv
Proyectos Universitarios de
Energías Renovables SL
Proyectos y Soluciones
Renovables SAC
Mexico City
MX
89,708,835
MXN
Line-by-line
Alicante
ES
27,000
EUR
Equity
San Miguel
PE
1,000
SOL
Line-by-line
PSG Energy Private Limited
-
IN
100,000
INR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
24.75%
Renovables La
Pedrera SLU
6.75%
26.08%
Renovables Mediavilla
SLU
5.69%
Enel Green Power
México S de RL de Cv
99.99%
99.99%
Enel Green Power
España SLU
Enel Green Power
Partecipazioni
Speciali Srl
33.33%
23.37%
99.90%
99.98%
Enel Perú SAC
0.10%
Enel Green Power
India Private Limited
100.00%
100.00%
Attachments
529
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
PT Enel Green Power Optima
Way Ratai
Jakarta
ID
10,002,740
USD
Line-by-line
Enel Green Power
SpA
90.00%
90.00%
Puerto Santa María Energía
I SLU
Puerto Santa María Energía
II SLU
Madrid
ES
3,000
EUR
Line-by-line
Madrid
ES
3,000
EUR
Line-by-line
Pulida Energy (RF) (Pty) Ltd
Johannesburg
ZA
10,000,000
ZAR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
South Africa (Pty) Ltd
52.70%
52.70%
Pumpkin Vine Wind Project
LLC
Andover
US
-
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Quatiara Energia SA
Niterói
BR
13,766,119
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Queens Energy Storage LLC
Andover
US
-
USD
Line-by-line
Quorn Park Solar Farm
(Pty) Ltd
Sydney
AU
100
AUD
Quorn Park Solar Farm Trust
Sydney
AU
100
AUD
Equity
Equity
Enel Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
Enel Green Power
Quorn Holding
(Pty) Ltd
100.00%
100.00%
100.00%
50.00%
Enel Green Power
Quorn Holding Trust
100.00%
50.00%
Raleigh Solar I LLC
Andover
Ranchland Solar Project LLC
Andover
Ranchland Wind Holdings
LLC
Andover
Ranchland Wind Project
II LLC
Andover
Ranchland Wind Project LLC Andover
Ranchland Wind Storage LLC Andover
Rattlesnake Creek Holdings
LLC
Delaware
Rausch Creek Wind Project
LLC
Andover
US
US
US
US
US
US
US
US
1
1
-
1
-
-
1
1
USD
USD
USD
USD
USD
USD
USD
USD
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
AzureRanchII 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
EUR
-
Enel Green Power
Italia Srl
0.50%
0.50%
1
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
RE Arroyo LLC
Andover
Reaktortest Sro
Trnava
Rebuilding Agente
Rehabilitador SL
Madrid
Red Cap Impofu (Pty) Ltd
Sandton
US
SK
ES
ZA
66,389
EUR
250,000
EUR
20,000,000
ZAR
Red Cap Impofu East (Pty)
Ltd
Red Cap Impofu West
(Pty) Ltd
Gauteng
ZA
35,059,068
ZAR
Gauteng
ZA
10,000
ZAR
530 Integrated Annual Report 2023
-
Equity
Equity
Equity
Equity
Slovenské elektrárne
AS
49.00%
16.17%
Endesa X Servicios
SLU
Impofu Cluster
Investment SPV (RF)
(Pty) Ltd
Impofu Cluster
Investment SPV (RF)
(Pty) Ltd
Impofu Cluster
Investment SPV (RF)
(Pty) Ltd
50.00%
35.06%
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Red Cardinal Solar Project
LLC
Red Centroamericana de
Telecomunicaciones SA
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Panama City
PA
2,700,000
USD
-
Enel SpA
11.11%
11.11%
Red Dirt Wind Holdings I LLC Dover
US
100
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Red Dirt Wind Holdings LLC Wilmington
US
Red Dirt Wind Project LLC
Dover
US
Red Fox Wind Project LLC
Wilmington
US
Red Stag Energy Storage
Project LLC
Andover
Red Top Solar Project LLC
Andover
Red Yucca Energy Storage
Project LLC
Andover
US
US
US
Regal Rising Solar Project
Limited Partnership
Calgary
CA
Ren Wave Solar Project LLC
Andover
US
-
1
1
1
1
1
-
1
USD
USD
USD
USD
USD
USD
CAD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Red Dirt Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
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 Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Renovables Andorra SLU
Madrid
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Renovables Brovales 400
kV SL
Seville
ES
5,000
EUR
Equity
Renovables Brovales Segura
de León 400 kV SL
Seville
ES
5,000
EUR
Equity
Renovables de Guatemala SA Guatemala City
GT
1,924,465,600
GTQ
Line-by-line
Renovables La Pedrera SLU
Zaragoza
ES
3,000
EUR
Line-by-line
Renovables Manzanares
400 kV SL
Madrid
ES
5,000
EUR
Equity
Renovables Mediavilla SLU
Zaragoza
ES
3,000
EUR
Line-by-line
Renovables Teruel SLU
Madrid
ES
3,000
EUR
Line-by-line
Baylio Solar SLU
6.24%
Dehesa de los
Guadalupes Solar
SLU
6.24%
Emintegral Cycle SLU 16.99%
Enel Green Power
España SLU
22.20%
Furatena Solar 1 SLU
6.24%
Seguidores Solares
Planta 2 SLU
6.24%
Emintegral Cycle SLU 33.02%
Enel Green Power
España SLU
Enel Colombia SA
ESP
31.03%
100.00%
Enel Guatemala SA
0.00%
44.98%
44.91%
47.18%
Enel Green Power
España SLU
Enel Green Power
España SLU
Stonewood
Desarrollos SLU
Enel Green Power
España SLU
100.00%
70.12%
27.86%
16.12%
30.84%
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Reservoir Falls Energy
Storage Project LLC
Andover
Rhinestone Solar Project LLC Andover
US
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Attachments
531
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Ribina Renovables 400 SL
Pozuelo de
Alarcón
ES
3,000
EUR
Equity
Enel Green Power
España SLU
40.21%
28.19%
River Mill Solar Project LLC
Andover
River Point Wind Project LLC Andover
Riverbend Farms Wind
Project LLC
Andover
US
US
US
Riverview LP
Alberta
CA
1
1
1
-
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
Tradewind Energy Inc. 100.00%
100.00%
CAD
Line-by-line
Enel Green Power
Canada Inc.
Riverview
Management Inc.
Enel Green Power
Canada Inc.
Brick Road Solar
Holdings LLC
Enel Roadrunner
Solar Project
Holdings LLC
50.50%
1.00%
51.01%
51.00%
51.00%
100.00%
100.00%
100.00%
100.00%
Riverview Management Inc.
Calgary
CA
100
CAD
Line-by-line
Riverview Solar I LLC
Andover
US
1
USD
Line-by-line
Roadrunner Solar Project
LLC
Andover
US
100
USD
Line-by-line
Roadrunner Storage LLC
Andover
US
-
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rock Creek Wind Holdings
I LLC
Rock Creek Wind Holdings
II LLC
Dover
US
100
USD
Line-by-line
Dover
US
100
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Rock Creek Wind
Holdings LLC
100.00%
100.00%
Rock Creek Wind Holdings
LLC
Wilmington
US
Rock Creek Wind Project LLC Clayton
Rock Prairie Wind Project
LLC
Andover
Rockhaven Ranchland
Holdings LLC
Andover
Rockhaven Wind Project LLC Andover
US
US
US
US
Rocky Caney Holdings LLC
Oklahoma City
US
Rocky Caney Wind LLC
Albany
US
Rocky Ridge Wind Project
LLC
Oklahoma City
US
-
1
1
1
1
1
-
-
USD
USD
USD
USD
USD
USD
USD
USD
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
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Rockhaven
Ranchland Holdings
LLC
100.00%
100.00%
Equity
Enel Kansas LLC
10.00%
10.00%
Equity
Equity
Rocky Caney
Holdings LLC
100.00%
10.00%
Rocky Caney Wind
LLC
100.00%
10.00%
Enel Green Power
Rus Limited Liability
Company
100.00%
100.00%
Enel Green Power
India Private Limited
100.00%
100.00%
Rodnikovskaya WPS
Moscow
RU
6,010,000
RUB
Line-by-line
Roha Renewables India
Private Limited
Gurugram
IN
100,000
INR
Line-by-line
Rolling Farms Wind Project
LLC
Andover
Rosy Range Solar Project LLC Andover
US
US
Ruthton Ridge LLC
Minneapolis
US
1
1
-
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
Chi Minnesota Wind
LLC
100.00%
100.00%
532 Integrated Annual Report 2023
Enel Green Power
España SLU
50.00%
35.06%
Enel Green Power
España SLU
66.67%
46.74%
Padoma Wind Power
LLC
100.00%
100.00%
Enel Green Power
India Private Limited
100.00%
100.00%
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
S4ma Developments
Spółka z Ograniczoną
Odpowiedzialnośą
Wrocław
PL
5,000
PLN
Line-by-line
Sacme SA
Buenos Aires
AR
12,000
ARS
Equity
Enel Green Power
SpA
100.00%
100.00%
Empresa
Distribuidora Sur SA
- Edesur
50.00%
29.66%
Saddle House Solar Project
LLC
Andover
Salt Springs Wind Project
LLC
Andover
US
US
-
-
USD
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Salto de San Rafael SL
Seville
ES
462,186
EUR
Equity
San Francisco de Borja SA
Zaragoza
ES
60,000
EUR
Line-by-line
Wilmington
US
-
USD
Line-by-line
Gurugram
IN
100,000
INR
Line-by-line
San Juan Mesa Wind Project
II LLC
Sanosari Energy Private
Limited
Santo Rostro Cogeneración
SA in liquidation
Seville
ES
207,340
EUR
Sardhy Green Hydrogen Srl
Sarroch
IT
10,000
EUR
Equity
Equity
Enel Green Power
España SLU
45.00%
31.55%
Enel Green Power
Italia Srl
50.00%
50.00%
Saugus River Energy Storage
LLC
Dover
US
100
USD
Line-by-line
Savanna Power Solar 10 SLU Madrid
ES
3,000
EUR
Line-by-line
Savanna Power Solar 12 SLU Madrid
ES
3,000
EUR
Line-by-line
Savanna Power Solar 13 SLU
Seville
ES
3,000
EUR
Line-by-line
Savanna Power Solar 4 SLU
Madrid
ES
3,000
EUR
Line-by-line
Savanna Power Solar 5 SLU
Madrid
ES
3,000
EUR
Line-by-line
Savanna Power Solar 6 SLU
Madrid
ES
3,000
EUR
Line-by-line
Savanna Power Solar 9 SLU
Madrid
Se Služby Inžinierskych
Stavieb Sro
Kalná Nad
Hronom
ES
SK
3,000
EUR
Line-by-line
200,000
EUR
Equity
Enel Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
100.00%
100.00%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Slovenské elektrárne
AS
100.00%
33.00%
Seaway Landing Solar Project
LLC
Seccionadora Almodóvar
Renovables SL
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Málaga
ES
5,000
EUR
Equity
Enel Green Power
España SLU
37.50%
26.29%
Seguidores Solares Planta
2 SLU
Madrid
Servizio Elettrico Nazionale
SpA
Rome
Set Carmona 400 kV
Renovables SL
Seville
Setyl Srl
Bergamo
ES
IT
ES
IT
3,010
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
10,000,000
EUR
Line-by-line
Enel Italia SpA
100.00%
100.00%
10,000
EUR
Equity
Enel Green Power
España SLU
16.00%
11.22%
100,000
EUR
Equity
Enel X Italia Srl
27.50%
27.50%
Attachments
533
Company name
Headquarters
Country
Share capital
Currency
Segment
Seven Cowboy PPA LLC
Andover
Seven Cowboy Wind Project
Holdings LLC
Andover
Seven Cowboy Wind Project
II LLC
Andover
Seven Cowboy Wind Project
LLC
Andover
Seven Cowboys Solar Project
LLC
Andover
US
US
US
US
US
1
1
1
1
-
USD
USD
USD
USD
USD
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
EGP North America
PPA 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
Seven Cowboy Wind
Project Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Shark Power 10 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 4 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 5 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 6 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 7 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 8 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power 9 SLU
Madrid
ES
3,000
EUR
Line-by-line
Shark Power SLU
100.00%
70.12%
Shark Power SLU
Madrid
ES
143,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Shepherd Pass Wind Project
LLC
Andover
US
Shiawassee Wind Project
LLC
Wilmington
US
Shield Energy Storage
Project LLC
Wilmington
US
1
1
-
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 Energy Storage
Holdings LLC
(formerly EGP Energy
Storage Holdings
LLC)
100.00%
100.00%
Shikhar Surya (One) Private
Limited
Gurugram
Sicilhy Srl
Rome
SIET - Società Informazioni
Esperienze Termoidrauliche
SpA
Piacenza
Silt Solar I LLC
Andover
Silver Dollar Solar Project LLC Andover
Silverware Solar Project LLC
Andover
Sinergia EWR4
Rome
Sinergia GP6 Srl
Rome
IN
IT
IT
US
US
US
IT
IT
340,100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
697,820
EUR
Equity
Enel Innovation
Hubs Srl
41.55%
41.55%
1
1
1
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
Enel Kansas LLC
100.00%
100.00%
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
534 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Sinergia GP7 Srl
Rome
IT
10,000
EUR
Line-by-line
Sistema Eléctrico de
Conexión Valcaire SL
Madrid
ES
175,200
EUR
Equity
Sistemas Energéticos Mañón
Ortigueira SA
Santiago de
Compostela
ES
2,007,750
EUR
Line-by-line
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%
Skyview Solar Project LLC
Andover
Skyview Wind Project LLC
Andover
US
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
SL Energy SAC
Lima
PE
1,000
SOL
Held for sale
Sleep Hollow Solar I LLC
Andover
US
1
USD
Line-by-line
Enel Generación
Perú SAA
99.90%
Enel Perú SAC
0.10%
71.55%
Brick Road Solar
Holdings LLC
100.00%
100.00%
25,010,000
EUR
Equity
Enel Produzione SpA
50.00%
50.00%
Slovak Power Holding BV
Amsterdam
Slovenské elektrárne -
Energetické Služby Sro
Bratislava
Slovenské elektrárne AS
Bratislava
NL
SK
SK
4,505,000
EUR
1,269,295,725
EUR
Slovenské elektrárne Česká
Republika Sro
Moravská Ostrava CZ
295,819
CZK
Smoky Hill Holdings II LLC
Wilmington
US
Smoky Hills Wind Farm LLC
Topeka
Smoky Hills Wind Project
II LLC
Lenexa
Snowy Knoll Wind Project
LLC
Andover
US
US
US
Snyder Wind Farm LLC
Hermleigh
US
-
-
-
1
-
USD
USD
USD
USD
USD
Equity
Equity
Equity
Slovenské elektrárne
AS
100.00%
33.00%
Slovak Power Holding
BV
66.00%
33.00%
Slovenské elektrárne
AS
100.00%
33.00%
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
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Texkan Wind LLC
100.00%
100.00%
Socibe Energia SA
Niterói
BR
12,969,032
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Sociedad Agrícola de
Cameros Ltda
Santiago de Chile CL
5,738,046,495
CLP
Line-by-line
Enel Chile SA
57.50%
37.33%
Sociedad Eólica de Andalucía
SA
Seville
ES
4,507,591
EUR
Line-by-line
Sociedad Eólica el Puntal SL
Seville
ES
1,643,000
EUR
Equity
Sociedad Eólica Los Lances
SA
Seville
ES
2,404,048
EUR
Line-by-line
Società Elettrica Trigno Srl
Rome
IT
100,000
EUR
Line-by-line
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%
Enel Green Power
Italia Srl
100.00%
100.00%
Soetwater Wind Farm (RF)
(Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Solana Renovables SL
Madrid
ES
6,246
EUR
Equity
Equity
Enel Green Power
RSA 2 (RF) (Pty) Ltd
55.00%
27.50%
Enel Green Power
España SLU
39.90%
27.97%
Soliloquoy Ridge LLC
Minneapolis
US
-
USD
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Attachments
535
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Sona Enerjí Üretím Anoním
Şírketí
Istanbul
TR
50,000
TRY
Line-by-line
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
100.00%
100.00%
Sonak Solar Project LLC
Andover
US
-
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Sone Renewable Energy
Private Limited
Gurgaon
IN
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
Sotavento Galicia SA
Santiago de
Compostela
ES
601,000
EUR
South Italy Green Hydrogen
Srl
Rome
IT
10,000
EUR
South Rock Wind Project LLC Andover
South Sky Solar Project LLC
Andover
Southern Star Solar Project
LLC
Andover
US
US
US
Southwest Transmission LLC Cedar Bluff
US
Southwestern Rays Solar
Project LLC
Andover
US
Spartan Hills LLC
Minneapolis
US
1
1
1
-
1
-
USD
USD
USD
USD
USD
USD
Equity
Equity
Enel Green Power
España SLU
36.00%
25.24%
Enel Green Power
Italia Srl
50.00%
50.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Spinazzola SPV Srl
Rome
IT
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Spring Wheat Solar Project
LLC
Andover
Square Dance Solar Project
LLC
Andover
US
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Sreeja Infrastructure Private
Limited
Hyderabad
IN
100,000
INR
Line-by-line
Stable Brook Storage Project
Limited Partnership
Calgary
CA
Stampede Solar Holdings
LLC
Andover
Stampede Solar Project LLC
Andover
Star Catcher Solar Project
LLC
Andover
US
US
US
-
1
-
1
Enel Green Power
India Private Limited
100.00%
100.00%
Enel Alberta Storage
Inc.
0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
CAD
Line-by-line
USD
USD
USD
Line-by-line
Enel Green Power
Stampede Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Fence Post Solar
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Star Energy Single Member
PC
Station Tales Solar Limited
Partnership
Sterling and Wilson Enel X
e-Mobility Private Limited
Maroussi
GR
63,010
EUR
Equity
Calgary
CA
100
CAD
Line-by-line
Enel Green Power
Hellas SA
100.00%
50.00%
Enel Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Mumbai
IN
90,000,000
INR
Equity
Enel X Way Srl
50.00%
50.00%
Stillman Valley Solar LLC
Wilmington
US
Stillwater Woods Hill
Holdings LLC
Wilmington
US
-
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Held for sale
Enel Kansas LLC
100.00%
100.00%
536 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Stipa Nayaá SA de Cv
Mexico City
MX
1,811,016,347
MXN
Line-by-line
Enel Green Power
México S de RL de Cv
55.21%
Enel Green Power
Partecipazioni
Speciali Srl
44.79%
Group %
holding
99.99%
Stockyard Solar Project LLC
Andover
Stone Belt Solar Project LLC
Andover
US
US
-
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Stonewood Desarrollos SLU
Madrid
ES
4,053,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Storey Plains Wind Project
LLC
Andover
Stormy Hills Wind Project
LLC
Andover
Strinestown Solar I LLC
Andover
US
US
US
1
1
-
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%
Suave Energía S de RL de Cv Mexico City
MX
1,000
MXN
Line-by-line
Sublunary Trading (RF)
(Pty) Ltd
Bryanston
ZA
13,750,000
ZAR
Line-by-line
Enel Green Power
México S de RL de Cv
0.10%
Enel Rinnovabile SA
de Cv
99.90%
100.00%
Enel Green Power
South Africa (Pty) Ltd
57.00%
57.00%
Sugar Pine Solar Project LLC Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Paço de Arcos
PT
50,000
EUR
Line-by-line
Endesa Generación
Portugal SA
100.00%
70.12%
Cádiz
ES
12,020,240
EUR
Equity
Endesa SA
33.50%
23.49%
Suggestion Power
Unipessoal Ltda
Suministradora Eléctrica de
Cádiz SA
Suministro de Luz y Fuerza
SL
Barcelona
ES
2,800,000
EUR
Line-by-line
Summit Energy Storage Inc. Wilmington
US
1,000
USD
Line-by-line
Hidroeléctrica de
Catalunya SLU
60.00%
42.07%
Enel Green Power
North America Inc.
75.00%
75.00%
Sun River LLC
Bend
US
Sun Rock Solar Limited
Partnership
Calgary
CA
Sun Up Solar Project LLC
Andover
US
Sun4 Koryta Spółka
z Ograniczoną
Odpowiedzialnością
Sun4 Torzym Spółka
z Ograniczoną
Odpowiedzialnością
Wrocław
Wrocław
PL
PL
-
-
1
USD
CAD
USD
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Line-by-line
Enel Alberta Solar Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
5,750
PLN
Line-by-line
5,750
PLN
Line-by-line
S4ma Developments
Spółka z Ograniczoną
Odpowiedzialnośą
S4ma Developments
Spółka z Ograniczoną
Odpowiedzialnośą
80.00%
80.00%
80.00%
80.00%
Sundance Wind Project LLC
Dover
US
100
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Sunflower Prairie Solar
Project LLC
Andover
Swather Solar Project LLC
Andover
Sweet Apple Solar Project
LLC
Andover
US
US
US
-
1
1
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
537
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
TAE Technologies Inc.
Pauling
US
53,207,936
USD
-
Enel Produzione SpA
1.02%
1.02%
Tasseling Jewel Wind Project
LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tauste Energía Distribuida SL Zaragoza
ES
60,508
EUR
Line-by-line
Enel Green Power
España SLU
51.00%
35.76%
Teal Canoe Solar Project LLC Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tecnoguat SA
Guatemala City
GT
30,948,000
GTQ
Line-by-line
Tejo Energia - Produção
e Distribuição de Energia
Eléctrica SA
Tenedora de Energía
Renovable Sol y Viento SAPI
de Cv
Lisbon
PT
5,025,000
EUR
Mexico City
MX
2,892,643,576
MXN
Equity
Equity
Enel Colombia SA
ESP
75.00%
35.38%
Endesa Generación
SAU
43.75%
30.68%
Enel Green Power
SpA
32.90%
32.90%
Tera Renewables India Private
Limited
Gurugram
Termica Colleferro SpA
Bologna
IN
IT
100,000
INR
Line-by-line
Enel Green Power
India Private Limited
100.00%
100.00%
6,100,000
EUR
Equity
Cogenio Srl
60.00%
12.00%
Termoeléctrica José de San
Martín SA
Termoeléctrica Manuel
Belgrano SA
Buenos Aires
AR
7,078,298
ARS
Buenos Aires
AR
7,078,307
ARS
-
-
Termotec Energía AIE in
liquidation
La Pobla de
Vallbona
ES
481,000
EUR
Equity
Terrer Renovables SL
Madrid
ES
5,000
EUR
Equity
Enel Generación El
Chocón SA
Enel Generación El
Chocón SA
5.60%
3.03%
6.23%
3.37%
Enel Green Power
España SLU
45.00%
31.55%
Baylio Solar SLU
11.66%
Dehesa de los
Guadalupes Solar
SLU
8.83%
20.73%
Seguidores Solares
Planta 2 SLU
9.08%
Texas Sage Solar Project LLC Andover
Texkan Wind LLC
Andover
US
US
1
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Texkan Inc.
100.00%
100.00%
Thar Surya 1 Private Limited
Gurgaon
IN
1,127,840
INR
Equity
Thunder Ranch Wind
Holdings I LLC
Dover
US
100
USD
Line-by-line
Avikiran Surya India
Private Limited
100.00%
51.00%
Enel Green Power
North America Inc.
100.00%
100.00%
Thunder Ranch Wind
Holdings LLC
Wilmington
US
Thunder Ranch Wind Project
LLC
Dover
Thunderegg Storage Project
LLC
Andover
Thunderegg Wind Project
LLC
Andover
US
US
US
-
1
1
1
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Thunder Ranch Wind
Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Tico Solar 1 SLU
Zaragoza
ES
3,000
EUR
Line-by-line
Tico Solar 2 SLU
Zaragoza
ES
3,000
EUR
Line-by-line
Enel Green Power
España SLU
100.00%
70.12%
Enel Green Power
España SLU
100.00%
70.12%
Tieton Storage Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
538 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Tobivox (RF) (Pty) Ltd
Johannesburg
ZA
10,000,000
ZAR
Line-by-line
Toledo PV AIE
Madrid
ES
26,888
EUR
Toro Renovables 400 kV SL
Madrid
ES
3,000
EUR
Equity
Equity
Torrepalma Energy 1 SLU
Madrid
ES
3,100
EUR
Line-by-line
Enel Green Power
South Africa (Pty) Ltd
60.00%
60.00%
Enel Green Power
España SLU
33.33%
23.37%
FRV Zamora Solar
1 SLU
8.28%
5.81%
Enel Green Power
España SLU
100.00%
70.12%
Tradewind Energy Inc.
Wilmington
US
1,000
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Trading Post Solar Project
LLC
Andover
Trail Ride Canyon Wind
Project LLC
Andover
US
US
1
1
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Transformadora Almodóvar
Renovables SL
Transportadora de Energía
SA - TESA
Seville
ES
5,000
EUR
Equity
Enel Green Power
España SLU
60.53%
42.44%
Enel Argentina SA
0.00%
Buenos Aires
AR
2,584,473,416
ARS
Held for sale
Enel Brasil SA
60.15%
82.27%
Transportes y Distribuciones
Eléctricas SA in liquidation
Olot
ES
72,121
EUR
Line-by-line
Trévago Renovables SL
Madrid
ES
3,000
EUR
Equity
Enel CIEN SA
39.85%
Edistribución Redes
Digitales SLU
73.33%
51.42%
Furatena Solar 1 SLU
17.73%
Seguidores Solares
Planta 2 SLU
17.77%
24.89%
Tsar Nicholas LLC
Minneapolis
US
Tulip Grove Solar Project LLC Andover
Tumbleweed Flat Solar
Project LLC
Andover
US
US
-
-
1
USD
USD
USD
Line-by-line
Chi Minnesota Wind
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%
Tunga Renewable Energy
Private Limited
Gurugram
IN
96,300,000
INR
Line-by-line
Avikiran Energy India
Private Limited
100.00%
100.00%
TWE Franklin Solar Project
LLC
Andover
TWE ROT DA LLC
Andover
US
US
Twin Lake Hills LLC
Minneapolis
US
Twin Saranac Holdings LLC
Wilmington
US
Tyme Srl
Bergamo
Unión Eléctrica de Canarias
Generación SAU
Las Palmas de
Gran Canaria
IT
ES
-
1
-
-
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
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
100,000
EUR
Equity
Enel X Italia Srl
50.00%
50.00%
190,171,521
EUR
Line-by-line
Endesa Generación
SAU
100.00%
70.12%
Enel Green Power
South Africa (Pty) Ltd
100.00%
100.00%
Upington Solar (Pty) Ltd
Johannesburg
ZA
1,000
ZAR
Line-by-line
Usina Eólica Pedra Pintada
A Ltda
Usina Eólica Pedra Pintada
B Ltda
Rio de Janeiro
BR
286,427,454
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
135,748,697
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Attachments
539
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Usina Eólica Pedra Pintada
C Ltda
Usina Eólica Pedra Pintada
D Ltda
Usina Eólica Pedra Pintada
E Ltda
Usina Eólica Pedra Pintada
F Ltda
Usina Eólica Pedra Pintada
G Ltda
Usina Fotovoltaica Arinos E
11 Ltda
Usina Fotovoltaica Arinos E
12 Ltda
Usina Fotovoltaica Arinos E
13 Ltda
Usina Fotovoltaica Arinos E
14 Ltda
Usina Fotovoltaica Arinos E
15 Ltda
Usina Fotovoltaica Arinos E
16 Ltda
Usina Fotovoltaica Arinos E
17 Ltda
Usina Fotovoltaica Arinos E
21 Ltda
Usina Fotovoltaica Arinos E
22 Ltda
Usina Fotovoltaica Arinos E
23 Ltda
Usina Fotovoltaica Arinos E
24 Ltda
Rio de Janeiro
BR
135,805,024
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
135,653,327
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
653
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
653,327
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
653,327
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
249,033,267
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
221,724,006
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
USME ZE SAS
Bogotá
CO
739,653,977
COP
Equity
Bogotá ZE SAS
100.00%
9.44%
Ustav Jaderného Výzkumu
Rez AS
Řež
CZ
524,139,000
CZK
-
Gurugram
IN
30,000,000
INR
Line-by-line
Slovenské elektrárne
AS
27.77%
9.17%
Enel Green Power
India Private Limited
100.00%
100.00%
Vayu (Project 1) Private
Limited
Vektör Enerjí Üretím Anoním
Şírketí
Velvet Wheat Solar Project
LLC
Ventos de Santa Ângela
Energias Renováveis SA
Ventos de Santa Esperança
Energias Renováveis SA
Ventos de Santo Orestes
Energias Renováveis SA
Ventos de São Cirilo Energias
Renováveis SA
Istanbul
TR
3,500,000
TRY
Line-by-line
Enel SpA
100.00%
100.00%
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Rio de Janeiro
BR
7,315,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
4,727,414
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
1,754,031
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
2,572,010
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
540 Integrated Annual Report 2023
Ventos de São Mário
Energias Renováveis SA
Ventos de São Roque
Energias Renováveis SA
Vientos del Altiplano SA
de Cv
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Rio de Janeiro
BR
2,492,000
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Rio de Janeiro
BR
10,188,722
BRL
Line-by-line
Enel Brasil SA
100.00%
82.27%
Mexico City
MX
1,455,854,094
MXN
Villanueva Solar SA de Cv
Mexico City
MX
205,316,027
MXN
Viruleiros SL
Santiago de
Compostela
ES
160,000
EUR
Line-by-line
Viva Labs AS
Oslo
NO
1,250,000
NOK
Line-by-line
Equity
Equity
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
España SLU
67.00%
46.98%
Enel X International
Srl
100.00%
100.00%
Wagon Train Solar Project
LLC
Andover
Walking Horse Wind Project
LLC
Andover
Wapella Bluffs Wind Project
LLC
Andover
Waseca Solar LLC
Waseca
Waypost Solar Project LLC
Andover
US
US
US
US
US
Weber Energy Storage
Project LLC
Wilmington
US
West Faribault Solar LLC
Wilmington
US
West Waconia Solar LLC
Wilmington
US
1
1
1
-
1
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
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%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Line-by-line
Aurora Distributed
Solar LLC
100.00%
74.13%
Western New York Wind
Corporation
Albany
US
300
USD
Line-by-line
Enel Green Power
North America Inc.
100.00%
100.00%
Western Trails Solar Project
LLC
Andover
Wharton-El Campo Solar
Project LLC
Andover
White Cloud Wind Holdings
LLC
Andover
White Cloud Wind Project
LLC
Andover
White Peaks Wind Project
LLC
Andover
Whitetail Trails Solar Project
LLC
Andover
US
US
US
US
US
US
1
1
-
1
1
-
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 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%
Whitney Hill Wind Power
Holdings LLC
Andover
US
99
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Whitney Hill Wind Power LLC Andover
Whittle’s Ferry Solar Project
LLC
Andover
US
US
-
1
USD
USD
Line-by-line
Whitney Hill Wind
Power Holdings LLC
100.00%
100.00%
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Attachments
541
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Wild Ox Solar Project LLC
Andover
US
1
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Wild Run LP
Alberta
CA
10
CAD
Line-by-line
Enel Alberta Wind Inc. 0.10%
Enel Green Power
Canada Inc.
99.90%
100.00%
Wild Six Solar Project LLC
Andover
Wildcat Flats Wind Project
LLC
Andover
Wilderness Range Solar
Project LLC
Andover
Wildflower Flats Battery
Project LLC
Andover
Wildflower Flats Solar Project
LLC
Andover
Wind Belt Transco LLC
Andover
US
US
US
US
US
US
1
1
-
1
1
1
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 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
Tradewind Energy Inc. 100.00%
100.00%
Wind Parks Anatolis - Prinias
Single Member SA
Maroussi
GR
15,803,388
EUR
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
Wind Parks Platanos Single
Member SA
Wind Parks Spilias Single
Member SA
Maroussi
GR
19,932,048
EUR
Equity
Maroussi
GR
26,107,790
EUR
Equity
Maroussi
GR
19,909,374
EUR
Equity
Maroussi
GR
22,268,039
EUR
Equity
Maroussi
GR
13,342,867
EUR
Equity
Maroussi
GR
28,267,490
EUR
Equity
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 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
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
100.00%
50.00%
Windbreaker Storage Project
LLC
Andover
US
Winter’s Spawn LLC
Minneapolis
US
1
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00%
100.00%
Wkn Basilicata Development
PE1 Srl
Rome
IT
10,000
EUR
Line-by-line
Enel Green Power
Italia Srl
100.00%
100.00%
Woods Hill Solar LLC
Wilmington
US
-
USD
Held for sale
Stillwater Woods Hill
Holdings LLC
100.00%
100.00%
X-bus Italia Srl
Milan
IT
15,000
EUR
Equity
Enel X Italia Srl
20.00%
20.00%
Yacylec SA
Buenos Aires
AR
20,000,000
ARS
Held for sale
Enel Américas SA
33.33%
27.42%
Yedesa Cogeneración SA in
liquidation
Almería
ES
234,395
EUR
Equity
Enel Green Power
España SLU
40.00%
28.05%
542 Integrated Annual Report 2023
Company name
Headquarters
Country
Share capital
Currency
Segment
Consolidation
method
Held by
% holding
Group %
holding
Yellow Rose Wind Project
LLC
Andover
Yorktown Energy Storage
1 LLC
Boston
US
US
1
-
USD
USD
Line-by-line
Enel Kansas LLC
100.00%
100.00%
Line-by-line
Enel X North America
Inc.
100.00%
100.00%
Zacapa Topco Sàrl
Luxembourg
LU
29,970,000
EUR
-
Enel X International
Srl
19.50%
19.50%
Zoo Solar Project LLC
Andover
US
-
USD
Line-by-line
Tradewind Energy Inc. 100.00%
100.00%
Attachments
543
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
Enel
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