Mr Ingmar Wilhelm; Executive Vice President at ENEL

1. The future of the Photovoltaic market
Ingmar WILHELM
Executive Vice President
Enel Green Power S.p.A.
The Solar Future II – Munich - 8th June 2010

2. Agenda
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3. In 2009, all renewable technologies have grown as expected
Global installed Global installed
Technology base base Δ capacity Δ Expected growth Investments
2008 2009 GW % CAGR 2008-2020 2009 - € bn
Hydro
Biomass
Geothermal
Wind
Solar
TOTAL ~1.155 GW ~1.230 GW +77 7% 9%
Source: Enel estimates based on IEA, EPIA, GWEC, EER.
* Calculated on 2008 equipment value Solarplaza Conference Munich - 8th June 2010 2

4. Enel Green Power is active in all key technologies
Technology Net installed capacity Key areas of activity
2009
Hydro Italy – Iberia – Europe – North America –
Latin America
Geothermal Italy – North America – Latin America
Wind Italy – Iberia – Europe – North America –
Latin America
Solar Iberia - Italy
Biomass Iberia – North America
and other
TOTAL 5.666 MW
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5. Enel Green Power: portfolio of markets
Enel Green Power
North America 2009
788 MW Capacity installed
5.666 MW
Energy produced:
20.7 TWh
France
68 MW Bulgaria
21 MW
Latin America
667 MW Iberia Greece
Italy
1,353 MW 133 MW
2,637 MW
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6. Enel Green Power business model along the PV value chain
Develop
Manufacturing Distribu Constru O&M
ment
tion ction
• uilding &
B • upplying of
S • and Scouting
L • inal design
F • lant visual
P
Major Production photovoltaic inspection
• ue diligence
D • odules,
M
content Equipment components
inverters, BOS • V testing
P
• onceptual
C
integration
design • V field
P
• lant certification
P measurement
Enel Green Long Term Project lead In-house : own plants
Enel.si Make and buy
Power Partnership
Outsourcing Enel.si franchisees
• lexible
F • rocurement
P • edicated
D • pecialized
S • ombined
C
contracts development engineering team: O&M with
• ranchising
F
and engineering Construction existing
• et of asset-
S network with
team Project renewables
Activity based and over 500
management
commercial entrepreneurs • etwork of
N
long-term PV
• ver 100 MW of
O
supply installers
PV installed in
options throughout
past three
under study Italy
years
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7. Agenda
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8. Global cumulative PV growth by markets
source EPIA
• Impressive PV growth in 2009, even more important in 2010
• Europe is strongest area with 70% market share
• However: global supply and demand scenario unsustainable
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9. The future: Evolution of PV levelized cost of electricity
• Residential segment can reach grid parity before 2015
• Wholesale grid parity in reach by 2020
• However: what is grid parity and what are the cascade effects?
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10. The future: Pricing range for larger systems in €/kW
2,200
to 2.500
• Cost reduction is accelerated compared to all 2008 scenarios
• Cost levels anticipated by 2 to 3 years
• Price impact from demand and supply balance to be seen
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11. Future PV growth scenarios for Europe
• PV growth can reach up to 10,000 MW in Europe in 2010
• PV to become a multi-segment mainstream energy resource
• PV growth potential until 2020 is enormous
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12. Agenda
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13. Growth of the Photovoltaic Market in Italy 2006 - 2009
Number of PV plants
1.468 6.356 24.136 42.500 10 MWp 71 MWp 338 MWp 712 MWp
= Ground (> 980 kWp)
= Roof - Business (7 kWp ÷ 980 kWp)
= Roof - residential (1 kWp ÷ 6 kWp)
Source: GSE
Up-date May 2010 Solarplaza Conference Munich - 8th June 2010 12

14. Photovoltaic Installations in Italy as of 2009
Source: GSE, update May 2010
PV installations as
% of total
• Puglia region is single most important area for PV installations
• Leading macro-areas are still the North and the Centre of Italy
• Rise of the Southern Area is to happen in the next three years
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15. Photovoltaic Installations in Italy as of 2009
Source: GSE, update May 2010
Capacity in MW Thousands of units
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16. Photovoltaic Installations in Italy as of 2009
Share of module technology per region in %
Source: GSE, update May 2010
Monocrystalline Polycrystalline Thin film
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17. Is this the medium term growth path of PV in Italy ?
Over Over
ca. ca.
≥1 1,000 MW 1,000 MW
MWp 1,000 MW 1,000 MW
< 1 MWp
< 6kWp 712 MW
2009 2010 2011 2012 2013
• potential for major growth in 2010 and 2011
• however new decree still to be issued
• tariffs per segments to be seen
Overall goal: create a stable and lasting growth momentum
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18. How much can renewable energies grow in Italy?
Power generation in TWh from 2002 to 2008 and forecast 2020
≈ 100 TWh
Hydro
Solar
Wind
Biomass
Geothermal
7
6
5,5
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19. Agenda
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20. Increasing importance of Smart Grids:
a key enabler for distributed PV generation
End user real time
Multi-directional Plug & Play information and participation
‘flows’ technologies
Central and distributed
Seamless intelligence
integration
of new applications
Smart equipments
and power
electronics
Central and distributed
resources
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21. Smart Grids : Roadmap Enel
SMART GRIDS
20-20-20
FULL ROLL-OUT
Smart Grids
EUROPEAN ELECTRICITY
Customers become aware and participate actively
Level 5: Smart Customers
Customers
maturity level
Management Level 4: Smart Energy Management
of end-use energy efficiency, aggregation, retail
GRID INITIATIVE
Functional levels
SMART GRIDS
Level 3: Smart Integration
Renewable energy, DG, electric vehicles, electricity storage and aggregation
Distribution
Network
More automated medium voltage distribution networks with self healing capabilities. Monitored and controlled low voltage networks. IT supported monitoring
process Level 2: Smart Distribution network and processes
Level 1: Smart Pan-European Transmission network Transmission
Network
Electricity
generation
Level 0: New generation technologies
Frame-Program 7: Pilots
• Operative grids
• Electrical and Hybrid vehicle
infrastructures
EU Frame Program 7
• ADDRESS
• Grid4Vehicles
ENEL PROJECTS
• Smart Info, Domanda attiva,
• Banda larga , E- Mobility
ENEL DEPLOYMENT
• Telegestore
• Grid Automation
• Work Force Mngm
• Asset Management
//
2000 2009 2010 2012 2015 2020
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22. Outlook on Photovoltaic market
• Increasing competitiveness of all renewables
• Increasing share of renewables driven by Photovoltaics and Wind
• Major goals of energy policy :
• provide investment security
• create a stable and sustainable growth momentum
• Power system flexibility requirements increase
• The potential of Photovoltaic power is enormous because:
• Variety of technologies
• Important efficiency and productivity improvements still ahead
• Proximity to demand
• Variety of solutions and full architectural integration
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