Global Prospective on Renewable Energy from Enel Green Power in North America

Toni Volpe

Enel Green Power - Head of the North America AreaPresident and CEO of Enel North America, Inc.

The 2010 Energy Roundtable conference: A sustainable energy future? Tuesday, October 5th 2010, Calgary, AB

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COLUMBIA• First operator in

generation (21%)• Second operator in

distribution (15%)• 2,3 mln clients

ARGENTINA• First operator in

generation (16%)• Second operator in

distribution (17%)• 2,3 mln clients

CHILE• First operator in

generation (37%)• First operator in

distribution (32%)• 1,6 mln clients

PERU• First operator in

generation (30%)• Second operator in

distribution (19%)• 1,2 mln clients

NORTH AMERICA• Diversified presence in

the main renewable technologies (hydro, geothermal, wind)

SPAIN• First operator in generation

(26%)• First operator in distribution

(43%)• 13 mln clients (electricity and

gas)

ITALY• First operator in

generation (26%)• First operator in

distribution (84%)• 33 mln clients

(electricity and gas)

SLOVAKIA• First operator in

generation (83%)

ROMANIA• Second operator in

distribution (30%)• 2,6 mln clients

RUSSIA• First vertically integrated

foreign operator (upstream gas, generation, supply)

BRAZIL• 5,4 mln clients

Market shares for distribution calculated per TWh of distributed energy

CENTRAL AMERICA• Hydro and wind power

plants in Costa Rica, Panama, El Salvador and Guatemala

Assets in 23 countries on 4 continentsMore than 90 GW of installed capacity

61 million of clients~ 80.000 employees

Enel: a world dimensionMajor areas of presence

Global Leader in a Growing IndustryEGP global footprint – H1 20100

Source: Company information.Note: Presentation includes consolidated financial and operating data unless otherwise stated.

Capacity as of 30 June 2010 - Production end 2009 PF - Pipeline and in execution data as of 30 June 2010.(1) Ongoing disposal process of Bulgarian assets, which are included in the figures.

EGP presence

North America

Operating 788 MW

Production 2.4 TWh

Footprint in 16 countries across all main renewable technologies

Iberia and Latin America

Operating 2,076 MW

Production 6.4 TWh

Italy and Europe(1)

Operating 2,897 MW

Production 12.0 TWh

Enel Green Power

Operating 5,761 MW

Production 20.9 TWh

Enel Green Power Generation Mix

Installed capacity by technologyH1 2010, GW

2%13%

44%

41%

Production by technology2009 PF, TWh

Source: Company information.

Total = 5.8 GW

Well-balanced asset base

3%

52%

21%

25%

Total = 20.9 TWh

OtherWindGeothermalHydro

The North American AreaAssets overview

Balanced presence in main renewable technologies in US States and Canadian Provinces

CANADA

US

GEO47

WIND379

HYDRO314

TOTAL740

WIND27

BIOMASS21

TOTAL48

GEO47

WIND406

BIOMASS

HYDRO

21

314

TOTAL788

NORTH AMERICA

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Sizeable Market and Positive Macroeconomic Outlook

Abundant Renewable Resources

Political and Regulatory Scenario

Main Drivers in the North America markets

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Total installed capacity in Canada, 2009 (MW) Total renewable installed capacity in Canada,2009 (MW)

Canada Generation Mix in 2009

More than 900 MW of new wind installed capacity in 2009

Source: EER Global Renewable Generation Forecast 2010-2015

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Wind Development Experienced Strong Growth in 2009

• Sizable land availability and quality of wind

resource

• Canada places 9th globally for new wind

installed capacity in 2009

• More than 3,300 MW of wind capacity

• Total electrical output from wind reached

~10,000 GWh/y

Canadian market characterized by attractive fundamentals

Source: IEA wind report 2009

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Further Development of Renewable Energy Will Complement Investments in Traditional Power

• Hydroelectric will continue to be the major source of electricity

• Significant growth expected in wind power

• Additional contribution from biomass, landfill gas, waste heat, solar and tidal wave energy generation

Source: 2009 Reference Case scenario : Canadian energy demand and supply to 2020 . National Energy Board

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Renewable Energy Potential to 2025 (MW)

Source: EER Global Renewable Generation Forecast 2010-2015

• 6.538 MW of installed renewable capacity in 2009

• Expected 38,384 MW of total renewable installed capacity in 2025

• Wind grows at 14% CAGR, while 30% CAGR is estimated for solar PV and 2% for biomass (2009 to 2025)

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Canada Regulatory Framework

Renewable Energy

ecoEnergy for Renewable Power - $1.48 billion program aimed at fostering the development of low impact renewable projects (“ecoENERGY Initiative”);

Accelerated Capital Cost Allowance – Accelerated depreciation rates (30% to 50%), on a declining balance basis, apply to specified clean energy generation, such as wind, hydro and solar. Renewable power developers can therefore deduct the capital cost faster, thus improving after-tax project returns

Canadian Renewable and Conservation Expense (“CRCE”) – Expenditures that qualify as CRCE eligible (e.g. pre-feasibility studies, site preparation, test wind turbines) can be 100%deducted against income and can be transferred to investors

National Initiatives Incentives and mechanisms in Canada

Source: IEA wind report 2009

Feed-in-Tariff - Selected provinces have the mechanism. Ontario’s Feed-in-Tariff program(fit) pays participants a fixed-price (0.135 CAD/kWh) for electricity they generate

Renewable Energy Standard (RES) or Renewable Portfolio Standard (RPS) – Selected provinces have the mechanism. For example Nova Scotia will generate at least 18.5% of its electricity from renewable sources by 2013

Request for Proposal – Quebec held 3 calls for wind power – 1,000 MW in 2003, 2,000 MW in 2005, 500 MW in 2009.

British Columbia – Clean Power Call for up to 5,000 GWh/year of seasonal and hourly firm energy in 2008.

Manitoba Hydro – called for new wind projects totaling up to 300 MW in 2007

Other: net metering, investment found

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Solar PV potential

Resource availability

Source: The Atlas of Canada, Natural Resources Canada

Mean wind speed at 50 m annual (m/s)

Reservoir capacity map

Market fundamentals

Resource fundamentals are interesting and create an excellent potential market

GHG regulation to be further defined

Mix of different incentives schemes at provincial and national level

Enel Green Power Canadian projects

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•Enel Green Power owns and operates 2 projects: 1 wind (27 MW) and 1 biomass (21 MW)

•Enel Green Power partially owns an hydro project in NL

•1 wind project is under construction in Alberta (76 MW) on line by the end of 2011