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Europe and North Africa

Operations

Net electricity generation

Millions of kWh
20162015 restatedChange
Thermal42,99345,024(2,031)-4.5%
Nuclear7,52314,081(6,558)-46.6%
Hydroelectric1,2352,410(1,175)-48.8%
Wind1,7151,798(83)-4.6%
Other sources147188(41)-21.8%
Total53,61363,501(9,888)-15.6%
- of which Russia 41,062 42,090 (1,028) -2.4%
- of which Slovakia 9,684 18,292 (8,608) -47.1%
- of which Belgium 977 1,150 (173) -15.0%
- of which other countries 1,890 1,969 (79) -4.0%

In 2016, net electricity generation amounted to 53,613 million kWh, a decrease of 9,888 million kWh on the same period of 2015.
This change is mainly attributable to the decrease in production in Slovakia in both the nuclear and hydroelectric segments due mainly to the deconsolidation of Slovenské elektrárne beginning as from the end of July 2016. To this factor we can also add the decline in power generation in Russia due to a failure at the Nevinnomisskaya combinedcycle plant (-967 million kWh) and a decrease in productionby the coal-fired plants (-641 million kWh), the effects of which were only partially offset by the positive trend for the traditional oil and gas-fired plants favored by the temporary unavailability of other technologies.

Contribution to gross thermal generation

Millions of kWh
20162015 restatedChange
Natural gas25,00046.7%25,55240.7%(552)-2.2%
Coal20,48338.2%22,09835.2%(1,615)-7.3%
Nuclear fuel8,10215.1%15,14624.1%(7,044)-46.5%
Total53,585100.0%62,796100.0%(9,211)-14.7%

Gross thermal generation for 2016 decreased by 9,211 million kWh to 53,585 million kWh, a change which mostly concerned the nuclear fuel segment in Slovakia following the deconsolidation, but the other sources also posted declines.

Electricity distribution and transport networks

MW
at Dec. 31, 2016at Dec. 31, 2015
restated
Change
Thermal plants8,9449,950(1,006)-10.1%
Nuclear plants-1,814(1,814)-100.0%
Hydroelectric plants191,609(1,590)-98.8%
Wind farms741741--
Other106133(27)-
Total9,81014,247(4,437)-31.1%
- of which Russia 8,944 8,944 --
- of which Slovakia -4,032 (4,032) -100.0%
- of which Belgium -406 (406) -100,0%
- of which other countries 866 865 1 0.1%

Net efficient capacity in 2016 totaled 9,810 MW, a decrease of 4,437 MW on the previous year. The change compared with December 31, 2015 is entirely attributable to the deconsolidation of Slovenské elektrárne and Marcinelle Energie
following their sale in July and December 2016, respectively.

Electricity distribution and transport networks

 20162015 restated2016-2015
Linee alta tensione a fine esercizio (km)6.5056.584(79)-1,2%
Linee media tensione a fine esercizio (km)35.01535.043(28)-0,1%
Linee bassa tensione a fine esercizio (km)49.93849.6582800,6%
Totale linee di distribuzione di energia elettrica (km)91.45891.2851730,2%
Energia trasportata sulla rete di distribuzione di Enel (milioni di kWh)14.89014.5823082,1%

Electricity transported, which was concentrated entirely in Romania, posted an increase of 308 million kWh (+2.1%), going from 14,582 million kWh to 14,890 million kWh in 2016. This increase was mainly the result of new grid connections,
which reflects the development of the country’s power grid.

Electricity sales

Millions of kWh
20162015 restatedChange
Free market 7,471 10,407 (2,936) -28.2%
Regulated market 4,864 5,353 (489) -9.1%
Total12,33515,760(3,425)-21.7%
- of which Romania7,7197,691280.4%
- of which France2,2183,966(1,748)-44.1%
- of which Slovakia2,3984,103(1,705)-41.6%

Electricity sales in 2016 decreased by 3,425 million kWh, going from 15,760 million kWh to 12,335 million kWh. This reduction may be attributed to:

  • alle minori quantità vendute in Francia per 1.748 milioni di kWh a seguito della politica commerciale intrapresa dal Gruppo nel Paese e ispirata anche dalla cessione di Enel France avvenuta nel dicembre 2016;
  • alla diminuzione delle vendite registrate in Slovacchia per 1.705 milioni di kWh, con una variazione quasi interamente imputabile al deconsolidamento.

Performance

Millions of euro
  2016   2015 restated   Change   
 Revenue   3,798   4,990   (1,192)   -23.9%  
 Gross operating margin   762   1,451   (689)   -47.5%  
 Operating income   286   (569)   855   - 
 Capital expenditure   265 (1)   249 (2)   16   6.4%  

(1) Does not include €283 million regarding units classified as “held for sale”..
(2) Does not include €648 million regarding units classified as “held for sale”.

The following tables show a breakdown of performance by country in 2016.

Revenue

Millions of euro
20162015 restatedChange
Romania1,0581,090(32)-2.9%
Russia9851,062(77)-7.3%
Slovakia1,3602,401(1,041)-43.4%
Other countries395437(42)-9.6%
Total3,7984,990(1,192)-23.9%

Revenue for 2016, in the amount of €3,798 million, decreased by €1,192 million (-23.9%) from the previous year. The performance was related to the following factors:

  • the €1,041 million decrease in revenue in Slovakia due to deconsolidation following the sale at the end of July 2016;
  • a decrease of €77 million in revenue in Russia due mainly to the weakening of the ruble against the euro (€88 million), which, combined with lower quantities generated, was only partially offset by an increase in unit sales prices;
  • the decrease of €32 million in revenue in Romania due essentially to the lower sales volumes on the retail market following the progressive liberalization of the market, the effects of which were only partially offset by an increase in quantities transported and in new connections;
  • a reduction of €124 million in revenue in France, which was only partially offset by an increase mainly in Belgium due to increased sales of gas.

Gross operating margin

Millions of euro
20162015 restatedChange
Romania339364(25)-6.9%
Russia1861642213.4%
Slovakia191871(680)-78.1%
Other countries4652(6)-11.5%
Total7621,451(689)-47.5%

Gross operating margin amounted to €762 million, a decrease of €689 million compared with 2015. This performance was mainly due to:

  • a decrease of €680 million in gross operating margin in Slovakia related mainly to the partial reversal of the provision for the disposal of nuclear fuel in the amount of €550 million in the 3rd Quarter of 2015 upon completion of the study by independent experts and taking account of new legislation introduced by the Slovakian Government in July 2015 concerning the back end of exhausted nuclear fuel. Add to this the effect of the deconsolidation at the end of July 2016;
  • a reduction of €25 million in the margin in Romania, which was almost entirely attributable to the margin on electricity transport;
  • a decrease in gross operating margin in Belgium as a result of an increase in cost and a decrease in quantities produced.

Operating income

Millions of euro
  2016   2015 restated   Change   
 Romania   71   58   13   22.4%  
 Russia   136   (839)   975   - 
 Slovakia   114   184   (70)   -38.0%  
 Other countries   (35)   28   (63) -  
 Total 286   (569)   855   - 

Operating income in 2016 totaled €286 million, an increase of €855 million. The result takes account of a decrease of €1,544 million in depreciation, amortization and impairment losses. More specifically, the change was mainly the result of:

  • a decrease of €86 million in depreciation and amortization, mostly related to the deconsolidation of Slovenské elektrárne;
  • an increase in impairment on the CGU Enel Green Power Romania;
  • impairment recognized in 2015 on the assets of Slovenské elektrárne in the amount of €574 million in order to adjust their value to estimated net realizable value in accordance with IFRS 5; analogous impairment of €19 million was recognized in 2016;
  • impairment of €899 million recognized in 2015 on the power generation assets held by Enel Russia given the ongoing unfavorable conditions of the market and regulatory landscape there.

Capital expenditure

Millions of euro
20162015 restatedChange
Romania1361211512.4%
Russia105112(7)-6.2%
Other countries2416850.0%
Total265 (1)249 (2) 166.4%

(1) Does not include €283 million regarding units classified as “held for sale.
(2) Does not include €648 million regarding units classified as “held for sale”.

Capital expenditure came to €265 million, up €16 million year on year.