Enel Green Power

Operations

Net electricity generation

Millions of kWh

   
 

2019

2018

Change

Hydroelectric

62,580

65,893

(3,313)

-5.0%

Geothermal

6,148

5,881

267

4.5%

Wind

26,668

22,161

4,507

20.3%

Solar

3,974

4,897

(923)

-18.8%

Other sources

21

108

(87)

-80.6%

Total net generation

99,391

98,940

451

0.5%

- of which Italy

24,308

25,476

(1,168)

-4.6%

- of which Iberia

10,090

12,172

(2,082)

-17.1%

- of which Latin America

48,448

48,137

311

0.6%

- of which Europe and Euro-Mediterranean Affairs

2,005

1,895

110

5.8%

- of which North America

12,969

9,752

3,217

33.0%

- of which Africa, Asia and Oceania

1,571

1,508

63

4.2%

Net electricity generation 2019 increased slightly from 2018 due to increases in wind and geothermal production, which were partially offset by decreases in hydroelectric and solar power generation. The most significant changes in wind power came in the United States and in Iberia, where production increased by 4,496 million kWh and 439 million kWh, respectively. These increases were partially offset by decreases in wind power generation in Mexico (down 759 million kWh) due, in part, to the sale of a number of companies in September 2018.
The increase in geothermal generation came mainly in the United States (up 285 million kWh). The decrease in hydro generation was due mainly to reduced water availability in Italy and Iberia, only partially offset by an increase in Latin America (up 458 million kWh), where output varied throughout the region. Of particular note were increases in Brazil (+940 million kWh), Colombia (+857 million kWh), and Peru (+462 million kWh), and these increases were offset by decreases in Argentina (-350 million kWh), Chile (-899 million kWh), and Panama (-308 million kWh).

   

Net efficient generation capacity

MW

    
 

at Dec. 31, 2019

at Dec. 31, 2018

Change

Hydroelectric

27,830

27,844

(14)

-0.1%

Geothermal

878

804

74

9.2%

Wind

10,327

8,190

2,137

26.1%

Solar

3,094

2,322

772

33.2%

Other sources

5

43

(38)

-88.4%

Total net power efficiency

42,134

39,203

2,931

7.5%

of which Italy

13,972

14,011

(39)

-0.3%

of which Iberia

7,391

6,525

866

13.3%

of which Latin America

13,676

13,869

(193)

-1.4%

of which Europe and Euro-Mediterranean Affairs

1,037

883

154

17.4%

of which North America

5,282

3,220

2,062

64.0%

- Africa, Asia and Oceania

776

695

81

11.7%

Net power efficiency capacity for 2019 increased from 2018, mainly in the United States due to the acquisition by Enel Green Power North America (EPGNA, now named Enel North America) of 13 companies that own wind, geothermal and solar plants, as well as to an increase in power generation capacity at the High Lonesome and Roadrunner plants. Wind and solar power generation capacity also increased in Iberia.

Performance

Millions of euro

   
 

2019

2018

Change

Revenue

7,733

8,056

(323)

-4.0%

Gross operating margin

4,604

4,608

(4)

-0.1%

Operating income

3,276

3,505

(229)

-6.5%

Capital expenditure

4,293(1)

2,784(2)

1,509

54.2%


(1) The figure does not include €4 million regarding units classified as “held for sale”.
(2) The figure does not include €378 million regarding units classified as “held for sale”.

   

The following tables show a breakdown of performance by country in 2019.

     

Revenue(1)

Millions of euro

   
 

2019

2018

Change

Italy

1,918

2,084

(166)

-8.0%

Iberia

653

716

(63)

-8.8%

Latin America

3,692

3,843

(151)

-3.9%

- of which Argentina

64

59

5

8.5%

- of which Brazil

694

676

18

2.7%

- of which Chile

1,489

1,584

(95)

-6.0%

- of which Colombia

1,007

941

66

7.0%

- of which Peru

201

334

(133)

-39.8%

- of which Panama

169

151

18

11.9%

- of which other countries

68

98

(30)

-30.6%

North America

1,115

860

255

29.7%

- of which the United States

956

564

392

69.5%

- of which Mexico

159

296

(137)

-46.3%

Europe and Euro-Mediterranean Affairs

271

255

16

6.3%

- of which Romania

175

173

2

1.2%

- of which Greece

86

73

13

17.8%

- of which Bulgaria

8

9

(1)

-11.1%

- of which other countries

2

-

2

-

Africa, Asia and Oceania

107

101

6

5.9%

Other

105

316

(211)

-66.8%

Eliminations and adjustments

(128)

(119)

(9)

-7.6%

Total

7,733

8,056

(323)

-4.0%

(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.

 

Gross operating margin(1)

Millions of euro

   
 

2019

2018

Change

Italy

1,240

1,220

20

1.6%

Iberia

358

361

(3)

-0.8%

Latin America

2,218

2,201

17

0.8%

- of which Argentina

51

46

5

10.9%

- of which Brazil

335

395

(60)

-15.2%

- of which Chile

899

877

22

2.5%

- of which Colombia

620

544

76

14.0%

- of which Peru

162

156

6

3.8%

- of which Panama

112

113

(1)

-0.9%

- of which other countries

39

70

(31)

-44.3%

North America

737

538

199

37.0%

- of which the United States

658

398

260

65.3%

- of which Mexico

79

140

(61)

-43.6%

Europe and Euro-Mediterranean Affairs

112

115

(3)

-2.6%

- of which Romania

75

62

13

21.0%

- of which Russia

(1)

(1)

-

-

- of which Greece

35

49

(14)

-28.6%

- of which Bulgaria

6

6

-

-

- of which other countries

(3)

(1)

(2)

-

Africa, Asia and Oceania

62

58

4

6.9%

Other

(123)

115

(238)

-

Total

4,604

4,608

(4)

-0.1%

(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.

Gross operating margin decreased by €4 million from 2018, which was essentially due to the following:

  • an increase of €199 million in the margin in North America, mainly due to:
    • an increase of €260 million in the margin the United States due essentially to the increase (€92 million) related to the change in the scope of consolidation following the acquisition by Enel North America (formerly Enel Green Power North America) of 13 companies sold by Enel Green Power North America Renewable Energy Partners LLC (EGPNA REP) and to the negative goodwill on the transaction (€106 million); to the negative goodwill related to the purchase of Tradewind Energy (€75 million), which was partially offset by the company’s negative margin (-€53 million); to the gains on the disposal of the projects Outlaw (€22 million) and Gratiot (€20 million); to the increase in tax partnership income related to the companies High Lonesome Wind Power (€87 million) and Roadrunner Solar Project (€67 million), which were partially offset by decreases in such income from Diamond Vista (-€40 million) and Rattlesnake Creek (-€39 million); 
    • a reduction of €61 million in the margin in Mexico due mainly to the change in the scope of consolidation following the sale of eight companies from Project Kino at the end of September 2018;
  • an increase of €17 million in the margin in Latin America, mainly due to:
    • the increase of €76 million in the margin in Colombia, due essentially to an increase in revenue on electricity sales (€73 million) as a result of an increase in average prices and in quantities traded on the power exchange, and lower costs for electricity purchases and transport (€78 million) related to lower quantities purchased, and to a decrease in fuel consumption (€15 million), partially offset by an increase in costs for ancillary services related to the electricity business (€82 million); 
    • an increase of €22 million in the margin in Chile, essen tially attributable to recognition of €80 million in penalty revenue by Enel Generación Chile due to a major industrial client exercising the right to early withdrawal from a long-term electricity provisioning agreement, partially offset by a loss on the electricity margin (€62 million) as a result of a decrease in production; 
    • a decrease of €60 million in the margin in Brazil, where the increase in revenue from electricity sales as a result of greater generation, partly eroded by a reduction in spot prices, was more than offset by an increase in costs for the purchase of electricity and the change in the scope of consolidation related to the disposal of three plants; 
    • decrease of €31 million in the margin in other countries due mainly to a decline in revenue from the sale of electricity in Costa Rica and Guatemala as a result of decreases in quantities generated and the change in the scope of consolidation that took place in Uruguay in December 2018; 
  • an increase of €20 million in the margin in Italy due essentially to an increase in the sales price of electricity despite the lower volume of hydro generation, partially offset by the effect of the recognition in the previous year of the gain on the sale of EF Solare Italia (€65 million); 
  • a reduction of €238 million in the margin that mainly reflected the recognition in the previous year of the gain on the sale of eight Project Kino companies in Mexico at the end of September 2018, as well as the fair value measurement of the Group’s 20% interest in the companies (€190 million) and the gain on the sale of a number of companies in Uruguay (€18 million).

Operating income(1)

Millions of euro

   
 

2019

2018

Change

Italy

909

828

81

9.8%

Iberia

183

208

(25)

-12.0%

Latin America

1,809

1,776

33

1.9%

- of which Argentina

38

39

(1)

-2.6%

- of which Brazil

250

309

(59)

-19.1%

- of which Chile

728

699

29

4.1%

- of which Colombia

560

488

72

14.8%

- of which Peru

123

107

16

15.0%

- of which Panama

96

98

(2)

-2.0%

- of which other countries

14

36

(22)

-61.1%

North America

418

364

54

14.8%

- of which the United States

367

270

97

35.9%

- of which Mexico

51

94

(43)

-45.7%

Europe and Euro-Mediterranean Affairs

58

195

(137)

-70.3%

- of which Romania

49

40

9

22.5%

- of which Russia

-

(1)

1

-

- of which Greece

10

154

(144)

-93.5%

- of which Bulgaria

3

3

-

-

- of which other countries

(4)

(1)

(3)

-

Africa, Asia and Oceania

24

19

5

26.3%

Other

(125)

115

(240)

-

Eliminations and adjustments

-

-

-

-

Total

3,276

3,505

(229)

-6.5%

(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.

In 2019, operating income, taking account of depreciation, amortization and impairment losses in the amount of €1,328 million (€1,103 million in 2018), decreased by €229 million compared with 2018 due to an increase in depreciation and amortization in the United States (€116 million) related mainly to the change in the scope of consolidation noted earlier and the start of operations at the Rattlesnake, Hilltopper and Diamond Vista plants, the impairment losses on the assets of a number of wind projects that are no longer viable, and the fair value adjustment of hydroelectric projects classified as HFS (€36 million), as well as the recognition in the previous year of the reversal of impairment on the Hellas CGU (€117 million).

Capital expenditure(1)

Millions of euro

   
 

2019

2018

Change

Italy

240

252(3)

(12)

-4.8%

Iberia

765

246

519

-

Latin America

1,055(2)

654

401

61.3%

North America

1,744

1,322(4)

422

31.9%

Europe and Euro-Mediterranean Affairs

189

139

50

36.0%

Africa, Asia and Oceania

274

142

132

93.0%

Other

26

29

(3)

-10.3%

Total

4,293

2,784

1,509

54.2%

(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guatemala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
(2) The figure does not include €4 million regarding units classified as “held for sale”.
(3) The figure does not include €3 million regarding units classified as “held for sale”.
(4) The figure does not include €375 million regarding units classified as “held for sale”.

Capital expenditure increased by €1,509 million compared with the previous year. More specifically, the change is attributable to:

  • an increase of €519 million in capital expenditure in Iberia attributable mainly to wind farms (€364 million) and photovoltaic plants (€153 million); 
  • an increase of €422 million in capital expenditure in North America, mainly attributable to an increase of €237 million in the United States and of €74 million in Mexico for solar plants and to increases in capital expenditure for wind farms (€112 million) following a sharp increase in Mexico (€224 million), partially offset by a decrease in capital expenditure in the United States (€198 million); 
  • an increase of €401 million in capital expenditure in Latin America attributable mainly to wind farms (€274 million) and photovoltaic plants (€170 million), which was partially offset by a decrease in capital expenditure on hydroelectric plants (€90 million). The increase in capital expenditure was concentrated in Brazil;
  • an increase of €132 million in capital expenditure in Africa, Asia and Oceania related mainly to wind farms (€82 million) following an increase in South Africa (€101 million), which was partially offset by decreases in capital expenditure in India (€19 million) and for solar plants (€50 million), mainly in Australia (€38 million);
  • an increase of €50 million in capital expenditure by Europe and Euro-Mediterranean Affairs, mainly on wind farms in Russia and Greece.