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Iberia

Iberia

Operations

Net electricity generation

Millions of kWh
20162015 restatedChange
Thermal35,52540,129(4,604)-11.5%
Nuclear25,92125,7561650.6%
Hydroelectric7,2887,250380.5%
Wind3,4224,094(672)-16.4%
Other sources167215(48)-22.3%
Total72,32377,444(5,121)-6.6%

In 2016, net electricity generation totaled 72,323 million kWh, a reduction of 5,121 million kWh from 2015. This decrease was mainly due to reduced thermal power generation in Spain following greater imports at lower prices from France, which was only partially offset by increased nuclear power generation as well as greater hydroelectric generation due to improved water availability during the period.
Another factor was the reduction in wind generation, which reflects, in part, the sale of the assets of the ENEOP consortium in Portugal in November 2015.

Contribution to gross thermal generation

Millions of kWh
20162015 restatedChange
Fuel oil6,2549.7%5,6328.1%62211.0%
Natural gas5,0087.8%5,1677.5%(159)-3.1%
Coal22,41334.7%27,44139.7%(5,028)-18.3%
Nuclear fuel26,99341.9%26,80638.8%1870.7%
Other fuels3,8105.9%4,1165.9%(306)-7.4%
Total64,478100.0%69,162100.0%(4,684)-6.8%

Gross thermal generation in 2016 totaled 64,478 million kWh, a decrease of 4,684 million kWh compared with the previous year. With regard to the mix of fuels used, there was a decline in the use of coal, which was penalized by a number of regulatory changes.

Net efficient generation capacity

MW
at Dec. 31, 2016at Dec. 31, 2015
restated
Change
Thermal plants13,03013,168(138)-1.0%
Nuclear plants3,3183,318--
Hydroelectric plants4,7644,764--
Wind farms1,6181,61620.1%
Other1446(32)-69.6%
Total22,74422,912(168)-0.7%

Net efficient capacity in 2016 totaled 22,744 MW, a decrease of 168 MW on the previous year connected mainly with the closure of unit 2 of the Compostilla plant.

Electricity distribution and transport networks

MW
20162015 restatedChange
High-voltage lines at period end (km)19,53919,479600.3%
Medium-voltage lines at year end (km)117,632118,436(804)-0.7%
Low-voltage lines at year end (km)179,391179,760(369)-0.2%
Total electricity distribution network (km) 316,562317,675(1,113)-0.4%
Electricity transported on Enel’s distribution network (millions of kWh) (1) 109,109107,1391,9701.8%

(1) The figure for 2015 reflects a more accurate measurement of amounts transported.

Electricity transported in 2016 totaled 109,109 million kWh, an increase of 1,970 million kWh, which is essentially in line with the increase in demand.

Electricity sales

Millions of kWh
20162015 restatedChange
Electricity sold by Enel93,49092,8995910.6%

Electricity sales to end users in 2016 totaled 93,490 million kWh, an increase of 591 million kWh over the same period of 2015.

Performance

Millions of euro
20162015 restatedChange
Revenue18,95320,484(1,531)-7.5%
Gross operating margin3,5623,3532096.2%
Operating income1,7661,47329319.9%
Capital expenditure1,1471,00114614.6%

The following tables break down performance by type of business in 2016.

Revenue

Milions of euro
20162015 restatedChange
Generation and Trading4,8935,800(907)-15.6%
Infrastructure and Networks2,5662,667(101)-3.8%
Renewables665808(143)-17.7%
End-user markets14,13215,677(1,545)-9.9%
Services25225110.4%
Eliminations and adjustments(3,555)(4,719)1,164-24.7%
Total18,95320,484(1,531)-7.5%

Revenue in 2016 decreased by €1,531 million due to:

  • a decrease of €1,545 million in revenue on End-user markets, essentially due to the reduction in the average sales prices;
  • a decrease of €907 million in revenue from Generation and Trading operations, primarily associated with:
    • a decrease of €659 million in revenue from the sale of electricity by the generation companies largely in relation to the Division’s companies that sell electricity and so is also reflected in an analogous increase in eliminations;
    • a decrease of €200 million in revenue from the sale and fair-value measurement of environmental certificates essentially related to a number of transactions conducted in 2015;
  • a decrease of €143 million in revenue from Renewables generation due mainly to the lower volumes of energy produced, which primarily reflected the change in the scope of consolidation during the period following the sale of the Portuguese assets at the end of 2015 and for which the fair value was adjusted following the spin-off of the ENEOP consortium in the amount of €29 million;
  • a decrease of €101 million in revenue from Infrastructure and Networks operations, primarily reflecting the decrease in revenue from connection fees despite an increase in quantities transported.

Gross operating margin

Millions of euro
20162015 restatedChange
Generation and Trading812780324.1%
Infrastructure and Networks1,8151,64317210.5%
Renewables351419(68)-16.2%
End-user markets67755712021.5%
Services(93)(46)(47)-
Total3,5623,3532096.2%

The gross operating margin amounted to €3,562 million, an increase of €209 million compared with 2015, reflecting:

  • an increase of €172 million in the margin on Infrastructure and Networks operations, which reflects the reduction in operating costs (which in 2015 were influenced by the introduction of an early-retirement plan), more than offsetting the reduction in connection fees;
  • an increase in the margin on End-user markets due essentially to lower provisioning costs for both electricity and gas, which more than offset the effect of falling sales prices;
  • an increase of €32 million in the gross operating margin on Generation and Trading operations, primarily associated with:
    • an improvement in the generation margin, related essentially to the decrease in provisioning costs;
    • the positive effects (€165 million) of a number of regulatory changes, including the reduction in taxes under Law 15/2012 (following a drop in quantities produced) and a ruling of the unconstitutionality of the tax on nuclear power generation in Catalonia; -- a decrease of €200 million in the margin on environmental certificates;
    • a decrease of €200 million in the margin on environmental certificates;
  • a reduction of €68 million in the margin on Renewables generation, where the decrease in revenue connected with the aforementioned change in the scope of consolidation was partially offset by a number of efficiency-improvement measures and the combined effect of the provisions recognized in 2015 and their subsequent release in 2016 (€28 million) in respect of obligations for the construction and development of the Portuguese hydroelectric plant at Girabolhos.

Operating income

Millions of euro
20162015 restatedChange
Generation and Trading1871276047.2%
Infrastructure and Networks1,04486817620.3%
Renewables89139(50)-36.0%
End-user markets53739913834.6%
Services(91)(60)(31)-51.7%
Total1,7661,47329319.9%

Operating income in 2016 totaled €1,766 million, including the effect of €1,796 million in depreciation, amortization and impairment losses (€1,880 million in 2015), an increase of €293 million over 2015. The reduction in depreciation, amortization and impairment was essentially due to the reduction compared with 2015 in impairment related to a number of items of property, plant and equipment and intangible assets and trade receivables.

Capital expenditure

Millions of euro
20162015 restatedChange
Generation and Trading3552738230.0%
Infrastructure and Networks644615294.7%
Renewables78641421.9%
End-user markets534948.2%
Services17-17-
Total1,1471,00114614.6%

Capital expenditure came to €1,147 million, up €146 million year on year. In particular, capital expenditure in 2016 primarily concerned generation plants (€355 million) as well as work on the distribution network (€237 million), notably projects related to improving service quality.