L’EOLICO: LA RINNOVABILE
EFFICIENTE, PULITA E DISPONIBILE
Rome, 15th of June, 2011
Market and Geography
Evolution of installed capacity in the word
Wide geographical
distribution derived from
the maturity of the
industry, increased
194 GW
support schemes and the
globality of the wind
resource
Source: GWEC. Global Wind Report 2010
2
Market and Geography
Evolution of installed capacity in the word
Annual forecast by Region 2010-2015
Just a few years ago wind energy was considered a premium technology only for rich countries because too expensive.
In 2010 more new wind power capacity was installed in developing countries and emerging economies than in the
traditional wind market in the OECD.
In the future wind generation will play an important role in the country's power mix
Success key:
 Improve the security of supply in the face of rapidity growing demand
 Relieve the national budget of the burden of expensive fossil fuel imports at volatile price
 Environmental factors : air quality, public health and carbon reduction commitment
Source: GWEC. Global Wind Report 2010
3
Market and Geography
Price reduction trend
75%
Source: EWEA 2009
Also thanks to the increase of wind energy installed capacity
cost of turbines has decreased during last three years...
...and additionally, the Capex/MWh will be improved by more efficient turbines
4
In Europe
Renewables Energy Policy
Since 1997, the European Union has had a successful renewable energy policy which has enabled significant
progress to be made towards the EU’s objectives of

reducing greenhouse gas emissions,

ensuring security of supply and

improving EU competitiveness.
Net electricity generating installations in EU 2000 – 2010 (MW)
Wind
38%
76 GW
Source: EWEA 2011
5
In Europe
Renewables Energy Policy
Due to the early adoption of ambitious national and EU targets,

European companies are world leaders in wind power technology,

Europe today gets approximately 20% of its electricity from renewable energy sources, including 5.3%
from wind energy.
In 2020, according to the Renewable Energy Directive’s 27 National Renewable Energy Action Plans,

34% of the EU’s total electricity consumption will come from renewable energy sources, including 14%
from wind energy (41% of Renewables)
6
IBERDROLA
INDEX
•IBERDROLA IN THE WORLD
•IBERDROLA RENOVABLES
7
IBERDROLA
WIND
SUN
ENGINEERING
DISTRIBUTION
HYDRO
PRODUCTION
CCGT
NUCLEAR
MERCHANDISING
GAS
8
IBERDROLA IN THE WORD
9
IBERDROLA IN THE WORLD
MAIN DATA 2010
MW Installed:
44.991 MW
Energy production:
154.073 GWh
Distributed Energy :
203.090 GWh
Electrical Cable (transport):
31.484 Km
Electrical cable (distribution):
798.221 Km
Gas Supply:
157.420 GWh
Clients:
24,5 (mill)
Employers:
29.641
IBEDROLA is the sixth
Utility in the World for
capitalization in the Stock
Exchange
For the consecutive
eleventh year IBERDROLA
has been selected in the the
Dow Jones Sustainability
indexes
10
IBERDROLA IN THE WORLD
IBERDROLA INSTALLED POWER (MW)
• CCGT
• Nuclear
• Renewable
• Hydro
• Coal
• Cogeneration
13.128 MW
3.344 MW
12.532 MW
27,85% of Iberdrola
installed power
9.892 MW
4.709 MW
1.229 MW
11
IBERDROLA
ARGOMENTI
•IBERDROLA IN SPAGNA & NEL MONDO
•IBERDROLA RENOVABLES
12
Iberdrola
Bet on wind power
13
Iberdrola
Bet on wind power
After adding 1,540 MW in the last 12
months, the Iberdrola now has an installed
capacity of 12,834 MW, strengthening its
position as world leader in the Renewables
sector
Wind energy forms the core of
IBERDROLA RENOVABLES’ business
accounting for 97.1% of output
Pipeline
At the end of 2010, IBERDROLA RENOVABLES
has a project portfolio of 62,613 MW.
In terms of technology types:
 97.3% correspond to wind power energy
 and 2.7% to other renewable energies.
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Italy
2020 NREAPs
Renewables’ share of electricity consumption per Member State (%) in 2020 according to the NREAPs
Wind energy share of
electricity consumption in
Italy
from 3,4% in 2010 to
5,3% in 2020
Vs
14% of European average
NREAP 2020
12 GW
ANEV 2020 estimation
16 GW
Italia
Wind potential
Wind energy average investments until 2020
Tecno 1: Feasible potential of RES according to
Position Paper Italian Government (September
2007 estimation).
2,300 M€/year
Tecno 2: Feasible potential of RES according to
IEA and UE Commission.
3,200 M€/year
Sources:
Other scenarios
BAU (Business as usual): Current market trend.
Vinco 1: Required potential of RES according to Italy´s UE obligations 17% in 2020 (September 2007 estimation)
Vinco 2: Same as Vinco 1 but considering energy efficiency measures.
“Oil and other hydrocarbons are a limited resource, and our own internal reserves are dwindling.
Today we import around 50% of our energy. By 2030 that will be nearer 70%, if we continue with
current policies.
At the same time, with the rise of new economic giants like China and India, global demand for
these hydrocarbons is increasing (...)
With its emphasis on renewable energy and a transformation to a low carbon economy, this
revolution will help us to strike a major blow in the fight against climate change. At the same time,
it will improve Europe’s energy security, and decrease geopolitical tensions.”
José Manuel Barroso
“Europe’s energy policy and the third industrial revolution”; Madrid 1 October 2007.2050”. Statement May 2010.
Italia
Wind potential
More than 243 billion US$ invested in clean technologies in 2010
96 billion US$ in WIND, 40% of total investments
Investment in Clean Energy
Wind keys:
 Stable generation costs.
Investment costs more longterm competitive
 Jobs in rural areas
contributing to its economic and
social development
 Represents an opportunity to
develop a new domestic
industry with high added value
Source: BNEF (Data includes investment in renewable energy, biofuels, energy efficiency, smart grid, CCS and investments in
infrastructure exclusively for the integration of 'clean energy‘)
CORE Toledo
Thanks
Valerio Faccenda
IBERDROLA RENOVABLES ITALIA S.p.A.
Via dei Gracchi, 151
00192 Roma
Telephone: +39 06 323 4167
Email:
vfaccenda@iberdrola.com
Regulatory
Renewable Regulatory decree n 28 of 3th
March 2011
 European Renewable Energy Directive (2009/28/EC): the National Renewable Energy Action Plan states
a target for Wind Energy of 12.000 MW within the next 9 years. Until now in Italy it is installed about 6.000
MW.
 The Legislative Decree n. 28 (published on 28th March 2011) introduces the principles for the new Italian
incentives scheme for the Renewables in order to achieve Italian obligations.
 Linked to the Decree n.28, some Implementing Decrees will enter into force within the 30th of September
and they will define all the details of the new incentive scheme (prices, mechanisms)
 In order to ensure the profitability of the investments already made​​, the Decree n.28 establishes
particular conditions for the Renewable plants entering in operation BEFORE 1th of January 2013
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Regulatory
Renewable Regulatory decree n 28 of 3th March 2011
(Published on 28th March 2011)
Renewable plants in operation BEFORE the 1st of January 2013

The GSE delivers the GCs on a monthly basis (until now was on a yearly basis)

Obligation for the GSE to buy the exceeded GCs 2011 – 2015

GCs price will be fixed until 2015 = 78% of Reference Price (180 €/MWh – POOL)

From the 2016 a FIT (Feed – In Tariff) will be assigned : fixed during the residual period of incentive.

The FIT value will be established by the Implementing Decrees within 30th of September, but reasonably it
shouldn't be so different from the GCs value in 2015 (the principle is to warrant the profitability of the
existing investments)
GREEN CERTIFICATES
2011
2012
2013
2014
FEED IN TARIFF
FIT
2015
2016
2017
2018
2019
2020
2021
…
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Regulatory
Renewable Regulatory decree n 28 of 3th March 2011
Renewable plants in operation AFTER the 1st of January 2013
*

CAPACITY THRESHOLD (CT): An Implementing Decree will define a Capacity Threshold (this value will
depend on energy source, in any case will not be lower than 5 MW – for wind it is estimated at least 2030MW):

For WF smaller than CT a FIT will be assigned DIRECTLY;

For WF bigger than CT a FIT will be assigned by an AUCTION managed by GSE

CATEGORIES CAPACITY. The FIT value directly assigned will depend on the size: higher for WF with
lower capacity.

FLOOR In the Auction process will be established an minimum incentive (“to insure the return of the
investment”)

DURATION OF INCENTIVE. The FIT will be fixed and valid during all the WF service life.
FIT
DIRECT ASSIGNMENT
Installed Capacity < CT
FIT
AUCTION
Installed Capacity < CT
PRICES LOWER THAN BEFORE BUT FIXED (NO UNCERTAINTY)
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Regulatory
Main Italian Wind Companies Workshop promoted by
IBERDROLA
 Workshop target
•
Achieve a shared proposal, follow up and lobby to influence in the IMPLEMENTING DECREES
definition (30th Sept)
•
Improve the influence in the National Wind Energy Association (ANEV).
 Other target
•
IBERDROLA is a member of Directive Committee of ANEV (CM is Vice-president)
Companies not invited in the Workshop because especially interested in conventional energy
24
Regulatory
Main Italian Wind Companies Workshop promoted by IBERDROLA
POSITION PAPER

INCENTIVES AFTER 2015: In order to not jeopardize the investments already realized warranting of
profitability: after the 31/12/15 the incentives should be fixed all along the wind farm service life and equal to
the average value of GC in the previous 5 years.

FEED IN PREMIUM: The incentive should be a FIP (feed in premium) instead of a FIT (feed in tariff). It could
avoid disadvantage of Price Energy increases and It could reduce the negative effects of the inflation.

AUCTION MECHANISM:


CAPACITY THRESHOLD (CT) = 50 MW Only the WF with a capacity bigger than 50 MW will participate
to the Auction, the others ones will directly get a FIP

FLOOR The WFs participating to the auction will get in any case a minimum incentive (Floor) that
warrants the profitability

MINIMUM REQUIREMENTS TO PARTECIPATE: The bidders should have a consolidated know-how and
a proven financial capability

Two different Auction procedures;

Permits and incentive assignment for WF off-shore or bigger than 100 MW.

Only incentive assignment for WF with power between 50 and 100 MW (projects already
authorized)
OTHER PROPOSALS The workshop also drew up some proposals regarding the plant repowering and
simplification of the authorization proceeding