Enel Green Power

Enel Green Power
45.0
GW
NET EFFICIENT INSTALLED CAPACITY
105.4
TWh
NET ELECTRICITY GENERATION
4,647
million
GROSS OPERATING PROFIT
4,629
million
CAPITAL
EXPENDITURE

Operations

NET ELECTRICITY GENERATION

Millions of kWh      
  2020 2019 Change
Hydroelectric 62,437 62,580 (143) -0.2%
Geothermal 6,167 6,149 18 0.3%
Wind 30,992 26,668 4,324 16.2%
Solar 5,763 3,974 1,789 45.0%
Other sources 1 21 (20) -95.2%
Total net generation 105,360 99,392 5,968 6.0%
- of which Italy 23,451 24,309 (858) -3.5%
- of which Iberia 13,415 10,090 3,325 33.0%
- of which Latin America 47,400 48,448 (1,048) -2.2%
- of which Europe 2,374 2,005 369 18.4%
- of which North America 17,182 12,969 4,213 32.5%
- of which Africa, Asia and Oceania 1,538 1,571 (33) -2.1%

Net electricity generation in 2020 increased from 2019 due to increases in wind and solar generation, partially offset by a decrease in hydro and biomass generation. The most significant changes in wind power were seen in the United States (+2,116 million kWh) due mainly to the start of operations at the High Lonesome (I and II) and Whitney Hill plants; in Iberia (+1,108 million kWh); in Mexico (+503 million kWh), due, above all, to the start of operations at the Dolores Wind plant; in Canada (+374 million kWh) due mainly to the start of operations at the Riverview plant; and in Greece (+346 million kWh) due mainly to the start-up of the new Kafireas wind farms. 
The increase in solar generation is mainly attributable to the United States (+850 million kWh) with the significant contribution of the new Roadrunner plant; Iberia (+397 million kWh), thanks, above all, to the new plants that went online in late 2019 in Estremadura; and Mexico (+397 million kWh), mainly due to the start of operations at the Magdalena plant.
Hydroelectric output fell slightly due to declining generation in Chile in particular (-866 million kWh) and Colombia (-1,305 million kWh), partly offset by an increase in output in Iberia (+1,821 million kWh).

Net efficient installed capacity

MW      
  2020 2019 Change
Hydroelectric 27,820 27,830 (10)
Geothermal 882 878 4 0.5%
Wind 12,412 10,327 2,085 20.2%
Solar 3,897 3,094 803 26.0%
Other sources 5 5 - -
Total net efficient generation capacity 45,016 42,134 2,882 6.8%
- of which Italy 13,986 13,972 14 0.1%
- of which Iberia 7,781 7,391 390 5.3%
- of which Latin America 14,554 13,676 878 6.4%
- of which Europe 1,141 1,037 104 10.0%
- of which North America 6,643 5,282 1,361 25.8%
- of which Africa, Asia and Oceania 911 776 135 17.4%

Net efficient installed capacity increased in 2020 compared with 2019, and mainly in:

  • the United States as a result of construction of the Roadrunner Ph II, Ph III and Ph IV solar plants, expansion of the Cimarron Bend wind farm, and the start of operations at the White Cloud and High Lonesome plants;
  • Mexico in relation to the Dolores Wind SA de Cv and Parque Amistad III SA de Cv wind farms;
  • Brazil in relation to the São Gonçalo photovoltaic plants and the Lagoa dos Ventos I wind farm;
  • Spain for the Aragona wind farms and the Andalusia, Castilla - La Mancha, Estremadura and Balearic Islands photovoltaic plants.

Performance(1)

Millions of euro      
  2020 2019 Change
Revenue 7,692 7,717 (25) -0.3%
Gross operating profit 4,647 4,588 59 1.3%
Ordinary gross operating profit 4,721 4,618 103 2.2%
Operating profit 2,734 3,260 (526) -16.1%
Capital expenditure 4,629 4,293(2) 336 7.8%

(1)The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.

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

The following tables show a breakdown of performance by Region/Country in 2020.

REVENUE(1)

Millions of euro      
  2020 2019 Change
Italy 2,154 1,918 236 12.3%
Iberia 771 653 118 18.1%
Latin America 3,234 3,677 (443) -12.0%
- of which Argentina 39 64 (25) -39.1%
- of which Brazil 837 694 143 20.6%
- of which Chile 1,209 1,479 (270) -18.3%
- of which Colombia 814 1,007 (193) -19.2%
- of which Peru 132 196 (64) -32.7%
- of which Panama 136 169 (33) -19.5%
- of which other countries 67 68 (1) -1.5%
North America 1,156 1,115 41 3.7%
- of which United States and Canada 1,018 956 62 6.5%
- of which Mexico 138 159 (21) -13.2%
Europe 323 271 52 19.2%
- of which Romania 198 175 23 13.1%
- of which Greece 114 86 28 32.6%
- of which Bulgaria 9 8 1 12.5%
- of which other countries 2 2 - -
Africa, Asia and Oceania 99 107 (8) -7.5%
Other 226 105 121 -
Eliminations and adjustments (271) (129) (142) -
Total 7,692 7,717 (25) -0.3%

(1)The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.

GROSS OPERATING PROFIT(1)

Millions of euro      
  2020 2019 Change
Italy 1,311 1,240 71 5.7%
Iberia 434 358 76 21.2%
Latin America 1,979 2,202 (223) -10.1%
- of which Argentina 28 51 (23) -45.1%
- of which Brazil 271 335 (64) -19.1%
- of which Chile 825 888 (63) -7.1%
- of which Colombia 573 620 (47) -7.6%
- of which Peru 136 157 (21) -13.4%
- of which Panama 101 112 (11) -9.8%
- of which other countries 45 39 6 15.4%
North America 767 737 30 4.1%
- of which United States and Canada 693 658 35 5.3%
- of which Mexico 74 79 (5) -6.3%
Europe 161 112 49 43.8%
- of which Romania 78 75 3 4.0%
- of which Russia (7) (1) (6) -
- of which Greece 85 35 50 -
- of which Bulgaria 7 6 1 16.7%
- of which other countries (2) (3) 1 33.3%
Africa, Asia and Oceania 53 62 (9) -14.5%
Other (58) (123) 65 52.8%
Total 4,647 4,588 59 1.3%

(1)The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.

The gross operating profit increased by €59 million from 2019, essentially reflecting:

  • an increase in gross operating profit in Italy, due above all to improved performance of hydroelectric plants;
  • an increase in gross operating profit in Spain, due above all to increased quantities generated and sold as a result of an increase in capacity following the start of operations at a number of wind and solar plants, as well as to increased quantities generated by hydroelectric plants, the effect of which was partially offset by a reduction in prices;
  • an improved gross operating profit in North America, mainly in the United States and Canada, where the recognition of negative goodwill in the amount of €181 million and gains on the sale of projects in the amount of €42 million in 2019 were more than offset by the following effects:
    • increased gross operating profit related to new plants entering service;
    • increased tax-partnership income (€137 million) recognized in 2020 following the start of operations at new Enel North America plants, in particular Cimarron Bend, White Cloud, Roadrunner, and Aurora Wind;
    • an increase in income from indemnities and disputes (€31 million);
    • an increase in income attributable to the sale of the Haystack wind project by Tradewind (€45 million);
  • an increase in gross operating profit in Europe, and in Greece in particular, following the start of operations for the Kafireas wind farms in the first part of 2020;
  • a decrease in gross operating profit in Latin America, due mainly to:
    • a decrease in gross operating profit in Chile due mainly to the recognition by Enel Generación Chile in 2019 of penalty revenue in the amount of €80 million as a result of the early withdrawal by a large-scale industrial customer from a long-term electricity supply agreement, as well as adverse exchange rate developments;
    • a deterioration of gross operating profit in Brazil, mainly as a result of the lower quantities sold, the significant weakening of the Brazilian real against the euro and the effect of the sale of a number of wind plants in 2019;
    • a reduction of gross operating profit in Colombia, mainly due to adverse exchange rate developments and to a decline in quantities generated and sold as a result, above all, of limited water availability and lower electricity demand.

The ordinary gross operating profit amounted to €4,721 million (€4,618 million in 2019), reflecting €50 million in costs relating to restructuring plans connected with the energy transition in Italy, Spain and Latin America, €10 million in costs incurred as a result of the COVID-19 pandemic for workplace sanitization activities, personal protective equipment and donations, €10 million in write-downs of the materials inventories of Enel Green Power Italia and €4 million for the supply of solar panels by Enel Green Power Italia related to a contractual clause connected with the sale of EF Solare Italia to F2i in 2019.

OPERATING PROFIT(1)

Millions of euro      
  2020 2019 Change
Italy 935 909 26 2.9%
Iberia 235 183 52 28.4%
Latin America 1,544 1,793 (249) -13.9%
- of which Argentina (15) 38 (53) -
- of which Brazil 207 249 (42) -16.9%
- of which Chile 660 718 (58) -8.1%
- of which Colombia 521 560 (39) -7.0%
- of which Peru 99 118 (19) -16.1%
- of which Panama 83 96 (13) -13.5%
- of which other countries (11) 14 (25) -
North America (28) 418 (446) -
- of which United States and Canada 394 367 27 7.4%
- of which Mexico (422) 51 (473) -
Europe 129 58 71 -
- of which Romania 109 49 60 -
- of which Russia (13) - (13) -
- of which Greece 46 10 36 -
- of which Bulgaria 4 3 1 33.3%
- of which other countries (17) (4) (13) -
Africa, Asia and Oceania (11) 24 (35) -
Other (70) (125) 55 -44.0%
Eliminations and adjustments - - - -
Total 2,734 3,260 (526) -16.1%

(1)The comparative figures for 2019 have been adjusted to take account of the fact that as from 2020 in Latin America amounts attributable to large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.

Operating profit for 2020, including depreciation, amortization and impairment losses in the amount of €1,913 million (€1,328 million in 2019), decreased by €526 million compared with 2019, due mainly to the recognition of impairment losses on the CGUs of Mexico, Australia and Argentina (for a total of €534 million) and to the impairment losses on the assets of a solar panel production line of Enel Green Power Italia (€65 million) and the CIS Nola plant (€15 million).

CAPITAL EXPENDITURE

Millions of euro      
  2020 2019 Change
Italy 283 240 43 17.9%
Iberia 460 765 (305) -39.9%
Latin America 1,514 1,055(1) 459 43.5%
North America 1,773 1,744 29 1.7%
Europe 157 189 (32) -16.9%
Africa, Asia and Oceania 414 274 140 51.1%
Other 28 26 2 7.7%
Total 4,629 4,293 336 7.8%

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

Capital expenditure increased by €336 million in 2020 compared with the same figure for the previous year. More specifically, the change is attributable to:

  • an increase of €459 million in capital expenditure in Latin America attributable mainly to photovoltaic plants (€403 million), geothermal plants (€12 million) and wind farms (€130 million), partially offset by a decrease in capital expenditure on hydroelectric plants (€71 million). The increase in capital expenditure was concentrated in Chile and Brazil;
  • an increase of €140 million in capital expenditure in Africa, Asia and Oceania related mainly to wind farms (€189 million) concentrated in South Africa and India, which was partially offset by decreased capital expenditure for photovoltaic plants (€49 million), mainly in Australia and Zambia;
  • an increase of €29 million in capital expenditure in North America related mainly to increased capital expenditure in the United States at wind farms (€306 million) and photovoltaic plants (€90 million), partially offset by reduced capital expenditure at wind farms (€235 million) and photovoltaic plants (€100 million) in Mexico and at wind farms in Canada (€84 million), reflecting the construction of numerous plants in 2019;
  • a decrease of €305 million in capital expenditure in Iberia, mainly related to wind farms (€387 million), given that construction for most of the projects was completed in 2019. This was partially offset by increased capital expenditure for photovoltaic and hydroelectric plants;
  • a decrease of €32 million in capital expenditure in Europe, particularly in Greece (€98 million), as projects developed in 2019 became operational. This effect was partially offset by increased capital expenditure for wind farms in Russia in the amount of €74 million.