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Metrics and targets

  • GRI
    

The main financial, operational and environmental metrics and targets used to measure and manage risks and opportunities related to climate change are indicated below.

201820172018-2017%

CO2reference price (euro)

13,05,37,7-

EBITDA for low-carbon products, services and technologies (billion euros) (1)

14,513,41,18,2

Capex for low-carbon products, services and technologies (billion euros) (1)

7,57,6-0,1-1,3

% Capex for low-carbon products, services and technologies out of the total (1)

89,088,90,1-

(1) The “low-carbon products, services and technologies” category includes the Enel Green Power, Infrastructure and Networks, Enel X and Retail (for 80%, excluding gas) Business Lines.

Net installed capacity

At the end of December 2018, the Group’s net installed capacity amounted to approximately 85.6 GW, up by around 0.7 GW compared to 2017, mainly due to the entry into operation of new renewable energy, wind and solar plants in Brazil, Mexico and the United States, solar plants in Colombia and wind farms in Peru.

The value of the difference in Group capacity between 2018 and 2017 only partially reflects the additional capacity from renewable sources in 2018, which amounts to 2.7 GW. This additional capacity gradually compensated for some renewable energy plants no longer being in the consolidation perimeter and instead being included in the BSO (Build, Sell and Operate) process. Managed capacity, therefore included some renewable energy plants in Italy, Canada, the United States, Mexico and Australia for a total of 4.2 GW. Considering the managed value as well, total capacity of the Group was equal to around 90 GW (31% hydroelectric, 17% other renewables, 11% oil and gas, 19% CCGT, 18% coal and 4% nuclear).

Capacity by source 2018

capacità per fonte 2018

Capacity by source 2017 (1)

capacità per fonte 2017

(1) As regards O&G (Oil and gas) and CCGT (Combined Cycle Gas Turbine), figures for 2017 were restated following the turbogas plants reclassification.

Electricity production

Production in 2018, equal to about 250.3 TWh, was stable overall compared to the figure for 2017, but reflected a different distribution internally of thermoelectric and renewable sources.

Thermal production recorded a decrease (equal to 10%), in particular due to the component from coal and combined cycles. In particular, this reduction was due to coal production in Italy (-14%) and Spain (-10%) and from combined cycles in Spain and South America, following the unavailability of some plants due to maintenance. In the renewables sector, there was a significant increase in hydroelectric generation (equal to 10.5 TWh compared to 2017) mainly due to a greater water availability in Europe (in Italy equal to 31% and in Spain 68% compared to 2017). In America, the increase due to a greater generation from hydroelectric power was recorded in Argentina, Chile and Brazil, also due to activity of the Volta Grande plant, already included in the Enel perimeter since 2017. The increase in production from renewable sources was also considerable, from wind power (equal to 24% compared to 2017) and solar power (equal to 90%), with the entry into operation of new plants in North, Central and South America.

Considering also the managed production of around 9.4 TWh, the total value is around 260 TWh (26% hydroelectric, 16% other renewables, 9% oil and gas, 15% CCGT, 25% coal, 9% nuclear). 49% of the energy produced by the Group in 2018 was emission-free. Hydroelectric, solar, wind and geothermal power generation facilities produced a total of about 99 TWh from renewable sources in 2018, representing over 39% of the energy produced by Enel during the year, thus avoiding the emission of some 62 mil t of CO2 into the atmosphere. Nuclear power production (equal to 10% of total production) made it possible to avoid releasing a further 17 milt of CO2.

Production by source 2018

produzione per fonte 2018

Production by source 2017

produzione per fonte 2017

201820172018-2017%

Average thermal generation yield (%) (1)

40,140,70,6-

Total direct consumption of fuel (Mtep)

37,041,3-4,3-10,4

(1) The percentages are calculated according to a new methodology that does not consider Italian O&G plants that are marginal/being decommissioned. The figures do not consider consumption and generation from cogeneration relative to thermal power production facilities in Russia. The mean yield is calculated from production facilities and is weighted on production values.

Greenhouse gas emissions 

In 2018, direct emissions of CO2 equivalent (Scope 1) amounted to approximately 95 million equivalent tons, registering a decrease of 10% compared to 2017. This result is due to lower thermal production compared to the previous year, with a decrease in coal production (-9% compared to 2017) and production from combined cycles (-14% compared to 2017). The percentage of thermoelectric emissions of CO2 below EU-ETS was equal to 57% of Scope 1.

The SF6 is used in high-and medium-voltage electrical equipment for its insulating and electric arc extinguishing properties and is, as of yet, irreplaceable in these applications. The quantities released into the atmosphere in 2018 amounted to 7,349 kg, equivalent to 173,000 t of CO2 equivalent. In percentage terms, SF6 contributes 0.18% of the Group Scope 1 emissions, i.e. an extremely small quantity.

Under Scope 1, Enel also considers the emission of ozone-depleting substances according to the Montreal Protocol, including for example chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). The emissions of these substances in 2018 corresponded to around 24,000 t of CO2 equivalent3.

Scope 2 emissions (about 1.09 mil teq) relate to indirect emissions deriving from the generation of electricity purchased and consumed by the Company.

Scope 2 includes CO2 emissions associated with the consumption of electricity purchased in the network for civil uses (in offices, for example) and for pumping in hydroelectric plants. The Scope 2 emissions indicated above are calculated according to the “location based”4 model.

Since 2016, all electricity supplies for Italian production sites and offices have been from renewable sources.

In 2018, this supply was certified with the issue of renewable energy certificates by the competent certification body.

Scope 2 emissions, indicated according to the “market based”5 criterion, are equal to 1.62 mil t.

Scope 3 emissions are generated as a result of the Company’s activities and are not derived from sources controlled or owned by the Company itself. For Enel, this value is mainly linked to fugitive emissions of methane from coal mines in the extraction phase and to emissions from the transport of fuels used for the operation of its plants. 2018 shows a value of about 6.8 mil t of CO2 equivalent, down about 5% compared to 2017 (7.1 mil t of CO2 equivalent) dueto the decrease in coal thermal activity. With a view to accuracy and covering GHG reporting, Enel is preparing the best way to calculate Scope 3 relative to the sale of gas and electricity.

An estimate of Scope 3 emissions relative to the gas and electricity market where Enel operates in Europe (gas and electricity) is given below. Enel estimates that the contribution of emissions from network losses from distributed energy in Europe amount to around 350,000 t. However, the highest contribution is due to emissions generated during the final phase of use of sold products. The Group estimates that for gas on the European market this value is approximately 23 mil t, and that a similar emissions value is produced from customers’ use of electricity.

3 The value obtained is calculated by converting the tons of each individual gas detected (CFC, HCFC, R22 and freon) by applying the value of the reference average Global Warming Potential of the gas families (source: IPCC, WG1AR5_ Chapter08).
4 The calculation of Scope 2 according to the “location based” method is based on the location of the enterprise. It is the result of the calculation of greenhouse gas emissions arising from the production of electricity in the area where it is consumed. This figure is obtained by multiplying the electricity consumption of an enterprise (indicated in kWh) within the boundaries of the reference country, and average greenhouse gas emissions by kWh in the same country (source: Greenhouse Gas Protocol Scope 2 Guidance, 2015).
5 The calculation of Scope 2 according to the “market based” method is based on the market on which the enterprise carries out operations. For companies operating in European countries, the reference market is the European market (EU). Companies can obtain this figure by calculating the emissions of the power plants they are supplied by. The origin of the electricity must be certified by “contractual instruments that meet minimum quality criteria”. In Europe, the only way to prove the origin of electricity is Guarantees of Origin. Businesses that use electricity whose origin is not certified by these Guarantees must carry out the calculation referring to emissions associated with the residual mix (source: Greenhouse Gas Protocol Scope 2 Guidance, 2015).

Per Enel questo valore è legato principalmente alle emissioni fuggitive di metano dalle miniere a carbone in fase estrattiva e alle emissioni dal trasporto dei combustibili utilizzati per il funzionamento delle sue centrali. Nel 2018 si riscontra un valore pari a circa 6,8 mln t di CO2 equivalente, in diminuzione di circa il 5% rispetto al 2017 (pari a 7,1 mln t di CO2 equivalente) a causa della diminuzione dell’attività termoelettrica a carbone.

In ottica di accuratezza e copertura della rendicontazione GHG, Enel si sta apprestando al calcolo migliore dello Scope 3 relativo alla vendita di gas ed elettricità. Di seguito viene riportata una stima delle emissioni relative all’attività di mercato di gas ed energia elettrica che Enel opera in Europa (gas ed elettricità). Enel stima che il contributo delle emissioni per le perdite di rete di trasmissione dell’energia distribuita in Europa sia di circa 350mila t. Tuttavia il maggior contributo è legato alle emissioni generate durante la fase finale di utilizzo dei prodotti venduti. Il Gruppo valuta che per il gas nel mercato europeo questo valore sia di circa 23 mln t, e che un analogo valore di emissioni sia prodotto dal consumo dell’energia elettrica da parte dei clienti.

For Enel, this value is mainly linked to fugitive emissions of methane from coal mines in the extraction phase and to emissions from the transport of fuels used for the operation of its plants. 2018 shows a value of about 6.8 mil t of CO2 equivalent, down about 5% compared to 2017 (7.1 mil t of CO2 equivalent) due to the decrease in coal thermal activity.

With a view to accuracy and covering GHG reporting, Enel is preparing the best way to calculate Scope 3 relative to the sale of gas and electricity. An estimate of Scope 3 emissions relative to the gas and electricity market where Enel operates in Europe (gas and electricity) is given below. Enel estimates that the contribution of emissions from network losses from distributed energy in Europe amount to around 350,000 t. However, the highest contribution is due to emissions generated during the final phase of use of sold products. The Group estimates that for gas on the European market this value is approximately 23 mil t, and that a similar emissions value is produced from customers’ use of electricity.

Total Direct Emission - Scope 1 (mln Teq)

Total Direct Emission

Specific CO2 emission

Specific emissions of CO2 were equal to 0.369 kg/kWheq in 2018, down considerably on 2017, due to the decrease in Group net thermal production, offset by a greater production from renewable sources. Considering the managed production, the value of Enel’s specific emission is equal to 0.356 kg/kWheq.

SPECIFIC CO2 EMISSIONS, TARGET AND PERFORMANCES (kgCO2/kWheq)

Compared to 2007, which is the base year for Enel’s target to reduce specific CO2 emissions by 2020, specific emissions have decreased by 21%. Considering the managed capacity, specific emissions are down a total of 23%. The 2020 target for CO2 emissions lower than 0.350 kg/kWheq has also been recognized as “science-based”1, meaning that it is on track for the achievement of global decarbonization targets.

Enel has set the target of achieving a reduction of CO2 specific emissions equal to 0.23 kgCO2/kWheq by 2030, based on the best forecasts currently available.

The Group strategy for the period 2019-2021 works towards this target, envisaging additional capacity from renewable sources of 11.6 GW (including managed capacity), which will bring total renewable capacity to a value of 53.9 GW by 2021 and consequently an increase in emission-free production to 62%, compared to the current figure of 51%, up over 2017 (equal to 45%).

emissioni specifiche

(1) “Science-based target” is an initiative of the Carbon Disclosure Project (CDP), UN Global Compact (UN-GC), World Resources Institute (WRI) and WWF (World Wildlife Fund) to stimulate companies to set greenhouse gas emission reduction targets that are in line with scientific requirements to limit the increase in the average global temperature to 2 °C by the end of the century compared to pre-industrial levels. Companies’ emission targets are assessed against a decarbonization trend based on the scenarios of the International Energy Agency (IEA) and the International Panel on Climate Change set up by the UN Framework Agreement on Climate Change. The scenarios set out 14 decarbonization trends to be applied to the main sectors of the economy, including for energy generation.

Additional environmental indicators related to climate change

201820172018-2017%
Specific water requirement for total production (l/kWheq) (1)0,380,44-0,06-13,6
Water withdrawal in water-stressed areas (%) (2)1293-
Production with water use in water-stressed areas (%) (2)88--

(1) Following the adoption of the new GRI Standard 303, the figure indicated previously referring to specific consumption now refers to specific requirement. Requirement means the total amount of water withdrawn, including the re-use of external waste water, necessary for operation of the plant. The specific requirement from total production is calculated as total water consumption by simple thermal generation and co-generation of electricity and heat and nuclear generation as a ratio of total simple thermal generation and co-generation of electricity and heat (including the contribution of heat in MWh equivalent), renewable generation and nuclear generation.
This figure does not include water used for open-cycle cooling, as the water is put back into the original water body. As regards the figure for 2018, the change in value in water drawing requirement is due to the change in the reporting criterion for the nuclear sector where cooling water returned to the receiving water body is no longer accounted for, as already recorded for all plants that adopt an “open cycle” cooling system. Based on recalculation, the total water withdrawn in 2017 was equal to 112.2 mil m3.
(2) The World Resources Institute (WRI) defined a “Water-Stressed Area” as an area where the annual availability of water per capita is less than 1,700 m3.

Targets

In addition to the objectives included in the “Strategy” section, the following targets related to the fight against climate change are reported below.

Targets
Emission-free generation (& incidence on the total) (1)62 in 2021
Specific CO2 emission from total net production (kgCO2/kWheq) (2)< 0,350 in 2020 (-25% compared to 2007)
0,23 in 2030 (-44% compared to2015)
Net renewable capacity (GW) (3)53,9 in 2021
Net thermal and nuclear capacity (GW)39,5 in 2021
Net renewable production (TWh) (1)132 in 2021
Net thermal and nuclear production (TWh)124 in 2021
Specific water requirement for total generation (l/kWheq) (4)-35% in 2030 (compared to 2015)

(1) Includes production from managed capacity.
(2) Specific emissions are calculated considering the total emissions from simple thermal generation, combined electricity and heat, in proportion to the total simple renewable, nuclear and thermal generation, combined electricity and heat generation (including the contribution of heat in MWheq).
(3) Includes managed capacity.
(4) Following the adoption of the new GRI Standard 303, the figure indicated previously referring to specific consumption now refers to specific requirement. Requirement means the total amount of water withdrawn, including the re-use of waste water, necessary for operation of the plant. This figure does not include water used for open-cycle cooling, which is entirely put back into the original water body.

The targets defined by Enel in its strategy to tackle climate change include certain assumptions – such as a benchmark price of CO2 of 18 euros in 2021 – which result in the following forecasts, among others

  • EBITDA for low-carbon products, services and technologies6 equal to 17 billion euros in 2021;
  • Capex for low-carbon products, services and technologies6 equal to 7.7 billion euros in 2021;
  • Percentage of Capex for low-carbon products, services and technologies equal to approximately 90% in 2021.

3 The value obtained is calculated by converting the tons of each individual gas detected (CFC, HCFC, R22 and freon) by applying the value of the reference average Global Warming Potential of the gas families (source: IPCC, WG1AR5_Chapter08).
4 The calculation of Scope 2 according to the “location based” method is based on the location of the enterprise. It is the result of the calculation of greenhouse gas emissions arising from the production of electricity in the area where it is consumed. This figure is obtained by multiplying the electricity consumption of an enterprise (indicated in kWh) within the boundaries of the reference country, and average greenhouse gas emissions by kWh in the same country (source: Greenhouse Gas Protocol Scope 2 Guidance, 2015).
5 The calculation of Scope 2 according to the “market based” method is based on the market on which the enterprise carries out operations. For companies operating in European countries, the reference market is the European market (EU). Companies can obtain this figure by calculating the emissions of the power plants they are supplied by. The origin of the electricity must be certified by “contractual instruments that meet minimum quality criteria”. In Europe, the only way to prove the origin of electricity is Guarantees of Origin. Businesses that use electricity whose origin is not certified by these Guarantees must carry out the calculation referring to emissions associated with the residual mix (source: Greenhouse Gas Protocol Scope 2 Guidance, 2015).
6 The “low-carbon products, services and technologies” category includes the Enel Green Power, Infrastructure and Networks, Enel X and Retail (excluding sale of gas sales) Business Lines.