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North and Central America

Operations

Net electricity generation

Millions of kWh
20162015 restatedChange
Hydroelectric2,8373,456(619)-17.9%
Geothermal362396(34)-8.6%
Wind9,0077,3031,70423.3%
Other sources6254814.8%
Total net generation 12,268 11,209 1,059 9.4%
- of which United States and Canada 8,628 7,368 1,260 17.1%
- of which Mexico 1,781 1,372 409 29.8%
- of which Panama 1,367 1,661 (294) -17.7%
- of which other countries 492 808 (316) -39.1%

In 2016, net electricity generation totaled 12,268 million kWh, an increase of 1,059 million kWh from 2015. This increase may be attributed mainly to the increase in wind power in the United States and Canada (+1,260 million kWh) related to the start of operations at a number of wind plants, such as Drift Sand and Chisholm View II in Oklahoma, Lindahl in North Dakota and Cimarron Bend I in Kansas, as well as the start of operations at the wind farms of Palo Alto and Vientos del Altiplano in Mexico (+409 kWh), which was partially offset by a decrease of hydroelectric power generation in Panama (-305 million kWh) and in Guatemala (-210 kWh) as a result of reduced water availability for the period.

Net efficient generation capacity

MW
at Dec. 31, 2016at Dec. 31, 2015
restated
Change
Hydroelectric plants630864(234)-27.1%
Geothermal plants-72(72)-100.0%
Wind farms2,0182,536(518)-20.4%
Other14441103-
Total 2,792 3,513 (721) -20.5%
- of which United States and Canada 1,495 2,507 (1,012) -40.4%
- of which Mexico 728 499 229 45.9%
- of which Panama 325 312 13 4.2%
- of which other countries 244 195 49 25.1%

Net efficient generation capacity for 2016 totaled 2,792 MW, a decrease of 721 MW compared with the previous year due essentially to a reduction in net efficient generation capacity at the wind farms in the United States and Canada (-1,012 million MW), associated with the deconsolidation of a number of plants following the sale of 1% of Enel Green Power North America Renewable Energy Partners (“EGPNA REP”), which was partially offset by an increase in net efficient generation capacity in Mexico (+229 million MW) with the start of operations for the wind farms of Palo Alto (+129 MW) and Vientos del Altiplano (+100 MW) as mentioned above.

Performance

Millions of euro
  2016   2015 restated   Change   
 Revenue   1,125   882   243   27.6%  
 Gross operating margin   833   575   258   44.9%  
 Operating income   565   338   227   67.2%  
 Capital expenditure   1,832   720   1,112   - 

The tables below show the financial performance by geographic area in 2016.

Revenue

Millions of euro
  2016   2015 restated   Change   
 United States and Canada   774   534   240   44.9%  
 Mexico   125   95   30   31.6%  
 Panama   143   172   (29)   -16.9%  
 Other countries   83   81   2   2.5%  
 Total   1,125   882   243   27.6%  

Revenue for 2016 came to €1,125 million, up €243 million (+27.6%) year on year. The performance was related to the following factors:

  • an increase of €240 million in revenue in the United States and Canada due essentially to an increase of €108 million in tax-partnership revenue, particularly for Aurora Solar, the remeasurement at fair value (€95 million) of the Group’s interest in EGPNA REP following the loss of control of the company as a result of changes in governance arrangements, the gains recognized on the sale of Cimarron and Lindahl totaling €35 million and the increase in revenue due to the greater quantities produced, above all due to wind plants;
  • an increase of €30 million in revenue in Mexico related mainly to the increase in wind power as mentioned above (€12 million) and increased revenue resulting from the positive outcome of VAT-recovery proceedings (€14 million);
  • a decrease of €29 million in revenue in Panama due to a reduction in revenue from the sale of electricity as a result of reduced water availability.

Gross operating margin

Millions of euro
20162015 restatedChange
United States and Canada58735123667.2%
Mexico95544175.9%
Panama93116(23)-19.8%
Other countries585447.4%
Total83357525844.9%

Gross operating margin came to €833 million in 2016, an increase of €258 million (+44.9%) compared with 2015. The increase may be attributed to the following factors:Gross operating margin came to €833 million in 2016, an increase of €258 million (+44.9%) compared with 2015. The increase may be attributed to the following factors:

  • an increase of €236 million in the margin in the United 76 Annual Report 2016 States and Canada, attributable to the increase in revenue described above, only partly offset by an increase in operating and personnel expenses;
  • an increase of €41 million in the margin in Mexico, which benefitted from the increase in volumes generated and from revenue from VAT refunds;
  • a decrease of €23 million in the margin in Panama due to the reduction in revenue and an increase in costs to purchase electricity to make up for a decrease in output as a result of reduced water availability.

Operating income

Millions of euro
  2016   2015 restated   Change   
 United States and Canada   398   168   230  - 
 Mexico   42   23   19   82.6%  
 Panama   80   104   (24)   -23.1%  
 Other countries   45   43   2   4.7%  
 Total 565   338   227   67.2%  

Operating income for 2016 amounted to €565 million, an increase of €227 million, taking account of an increase of €31 million in depreciation, amortization and impairment, essentially in Mexico, the United States and Canada due mainly to the start of operations of new plants.

Capital expenditure

Millions of euro
20162015 restatedChange
United States and Canada1,4662891,177 -
Mexico248286(38)-13.3%
Panama421923-
Other countries76126(50)-39.7%
Total1,8327201,112-

Capital expenditure in 2016 totaled €1,832 million for an increase of €1,112 million from the previous year due to an increase in capital expenditure for wind farms in the United States and Canada, particularly at Cimarron Bend I (€255 million), Cimarron Bend II (€179 million), Aurora (€231 million), Chisholm View (€82 million), Drift Sand (€76 million), and Lindahl (€189 million).