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“Nuclear renaissance and financial stability in the age of crisis”

The return of Italy to nuclear power

Davos, 18 February 2011“World Forum for Communication”Enel SpAVittorio Amedeo Alessio

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Part 1

…What we are saying…

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5.5 GW of installed capacity and additional 1 GW under construction

Italian Nuclear Program: agreement with EDF for the

joint development of at least 4 EPR units

Enel: a major European nuclear player”Our assets and projects speak for us”

Potential development of new capacity:

•Russia: Kaliningrad, two 1,117MW VVERs. Agreement with Rosatom

•Romania: consortium led by Nuclearelectrica to build “Cernavoda 3&4” (1,500 MW)

SlovakiaOperational: 4 VVER units, 1,896 MWUnder construction: 2 VVER units of Mochovce 3&4, 880 MW

SpainOperational: 7 Units (6 PWR Westinghouse units and 1 BWR GE unit), 3,640 MW

FranceUnder construction: participation in 1 EPR unit in Flamanville, 1,630 MW

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European Generation Mix “Italians buck the trend..Could they be wrong about energy strategy?”

* Coal, lignite

Source: Enerdata; Terna; Enel; Year 2009

Italy Germany Spain France EU27

3%

RENEWABLES

NUCLEAR

OIL

NATURAL GAS

COAL *

Enel Worldwide

26%

10%

51%

13%

17%

23%

1%13%

46%

26%

18%

6%

36%

14%

14%

75%

1%5%5%

19%

28%

22%

28%27%

22%

7%12%

32%

32%

23%

4%

41%

Enel Italy

12% of Enel global power production comes from nuclear fuel. Italy is the only large industrialized country without nuclear assets

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Nuclear power plants in the world”Italy is surrouned by nuclear power plants but can’t rely on cheap nuclear energy”

441 reactors in 29 countries with total capacity of 374,000 MWe – or 14% of global

power production Within 200 km from Italian border, there are

26 reactors with 24,000 MWe

200 km

Source: International Nuclear Safety Center (INSC) - U.S. Department of Energy (DOE)

Nuclear is safe: power plants have reached 14,000 reactor years of operating experience

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Nuclear power plants under construction“Fast-growing economies go for it”

Source: International Atomic Energy AgencyEnel developed or co-developed projects

•65 power plants are being built in 16 countries

•62,000 MWe additional capacity

• Several countries have started specific programmes to revamp nuclear energy, including the U.S., UK, France, China.

MWe

26.230

9.153

3.786

5.560

1.906

782

1.900

2.650

692

1.600

1.600

915

300

1.16511

2

1111

222

56

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USA

Pakistan

Japan

Iran

France

Finland

Argentina

Ukraine

Slovak Rep

Bulgaria

India

Korea

Russia

China

2Taiwan 2.600

1.2451Brazil

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Enel goes nuclear in Slovakia”25 years after Italy banned nuclear, Enel is back to nuclear”

Under development

Operating units

Lay-out of the plant Description of the project

• In Slovakia Enel’s Slovenske Elektrarne is in the construction phase of two VVER 440 MW units in Mochovce plant

• Investment: around 3 Bln EUR• The site was opened on Nov 2008;

construction works are on-time:­Sep 2010: reactor vessel has been put

in place in EMO3next milestones will be:­Ott 2012: first fuel charge in EMO3­Dec 2012: first synchronization of EMO3

In Slovakia Enel is constructing two units with Russian VVER technology

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Building first III Generation Unit in France”Enel joins forces with EdF and builds Flamanville EPR reactor”

Flamanville lay-out (render and actual)

Plant under construction

Agreement with EdF

Flamanville project is a training experience for Enel, in sight of the Italian Nuclear Program development

• Enel is participating in the construction of a III Generation EPR Unit (1630 MW) in Flamanville with EdF

• Flamanville3 is based on the same EPR technology chosen by Enel for Italian Program

• Enel is participating in the investment with a 12,5% share

• Enel’s engineers are integrated in the EdF project structure, in order to participate to the design, realization and operation activities of the EPR series reactors

• Enel has also an option for other EPR in France, and in particular will participate in Penly project

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• France: 58 operational units

• Germany: 17 operational units

French and German experience …

… the most advanced technologies …

• N4 (Chooz B)

• Konvoi (Emsland)

… III+ generation reactor

EPR

EPR benefits of the decennial experience of realization and operation of PWR reactors in France and Germany: it is an evolutionary project based

on French technology N4 and German technology Konvoi9

The EPR technologyThe origin of the European technology for 3rd generation NPP

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The EPR technologySafety features

EPR projects integrates the most advanced safety systems to reduce accident probability to not significant values and to eliminate any possible

consequence for external environment

4 redundant systems Containment for core meltContainment

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Part 2

...What is happening…

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The Italian Nuclear ProgramItalian Government strategic guidelines

1) Covered by national production and import with import decrease by 2020 with respect to 20082) 17 years required to complete the program (2025) – 2020 used as reference point3) Load factor equal to 90%

Italian consumptions1)

[TWh/y] Target [TWh/y; %] Required nuclear power3) [MWe]

CAGR: +1.2%

Nuclear

Others

13,000 MWe

8 units 1,600 MWe

each

2008 2020

350

400

2)

100(25%)

300(75%)

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The Italian Nuclear ProgramEnel/EdF cooperation agreement

• EPR technology is the base for the whole Program

• Flamanville3 is the reference project

Program

• Development of a series of at least 4 Nuclear Units in Italy

• Definition of at least 2-3 suitable sites for the Program

• Enel and EDF are the Architect-engineers for the project

• A multi-contract approach will be utilized

Program details Development and ownership

Technology

Construction model

• Enel-EdF Joint Venture on equal basis (50/50) for the Feasibility study Sviluppo Nucleare Italia S.r.l. has been established on the 31st of July 2009

• Dedicated Special Purpose Company for the Ownership and Operation:­ Enel to be the majority

shareholder for the Plant ownership

­ Enel Leadership for Plant operation

­ Investment will be open to the participation of third parties

First development

phase

Plants ownership

Development of at least 4 Nuclear Units based on the EPR technology and Flamanville 3 model

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The Italian Nuclear Program Costs and timing

• Realization of one EPR Unit will require an investment of about – 4.5 Bln EUR worth (actual cost base is Flamanville3, this estimate should be better defined in consideration to site characteristics, materials and construction costs)

• The construction of the NPP units will require an overall investment of about 18 Mld EUR

It is an infrastructural program with few precedents in Italy for investments extent

Costs

Timing

• Site selection process will end by 2011• Final investment decision will be taken in 2013, after the

assignment of the Construction and Operating License• Qualification activities for engineering, supplies and erection

already started, in the next year first Requests for Offer will be issued, in three years first contracts with suppliers will be signed

• 60 years of commercial operation

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The Italian Nuclear Program How Enel is structuring to cope with the program

1.700

410

200

30

2006 2010 2013 2020

Nuclear skilled resources [n.]

Beginning of the

program

Today Early works at site

Start of operations

Actions

• Strong increase of skilled personnel dedicated to the Nuclear Program

• Participation in Flamanville3 and Mochovce3&4 projects as training experiences (60 resources in France, 400 involved in Slovakia, 10 in Spain)

• Technical training program dedicated to operations and engineering profiles

• Reinforcement of the network with european “nuclear” universities: masters and scholarships

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The Italian Nuclear Program Legislative framework

Our program is progressing but can be affected by delays in regulatory framework definition

• Implementing Decree approved in March 2010, it provides rules for localization, licensing and operations of new NPPs:­ Nuclear Energy Strategy­ Licensing procedures for localization and authorization of NPPs, nuclear

fuel fabrication plants, spent fuel and radioactive waste storages, final disposal for radioactive waste

­ Decommissioning fund­ Compensative measures­ Information campaign

• Appointment of Nuclear Safety Agency (pending parliamentary approval)

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Steps achieved

Next steps

• Decrees to be approved for:­ Technical parameters for site selection­ Accepted technologies­ Operators requirements­ Criteria for Consortium composition­ Financial coverage

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Part 3

…What people think…

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Nuclear power and the ItaliansPolls show the NIMBY syndrome is spreading, but…

We are telling them:

“Nuclear energy is cheap, competitive and it can be produced at stable costs”;

“Nuclear energy isn’t dependent on oil volatility and it’s key to the security of supply by allowing diversification”;

“Italian consumers need a balanced mix of energy sources, split between coal, nuclear, natural gas, renewables”;

“Nuclear energy is key to cut CO2 emissions, is well-established and safe, after 14,000 reactor years of operating experience”.

Highilghts: 30% of those polled is a strong opponent Strong supporters reach only 9% of total A large number of people is still undecided or hasn’t yet

reached a firm decision on whether nuclear is good or bad for them.

“I am in favour of nuclear power production”

61% of Italians haven’t made up their mind

Fonte: GPF Monitor 3SC November 2010

61%

SomewhatSomewhat

YesYes

Not at allNot at all

Not so muchNot so much

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ENVIRONMENTAL GROUPS

“A balanced energy mix will cut CO2

emissions. Nuclear waste can be stored

safely”

We are teaming up with industry, university, groups. “We have a 20 bln euro plan to jump-start the economy”

INSTITUTIONS

“We want to set up a strategic alliance to help

Italy reduce oil dependency and secure an independent energy

supply”

INDUSTRY

“Hundreds of Italian companies have a unique chance to access nuclear

know-how and join the global nuclear reinassance”

UNIVERSITY, RESEARCH

“Enrico Fermi invented the reactor before Italy quit nuclear. Today you have another chance

to help mankind to a better living”

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Going public…

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Italian Nuclear Forum ad campaign: “And You?”BLACK: “I am against nuclear because I am worried by the past”; WHITE: “I am in favour of nuclear because I am worried by future”; WHITE: “I am in favour of nuclear because I care about the environment”; BLACK: “I am against nuclear because I care about the environment”.

On air on tv, cinema, billboards, newspapers, Internet, since 19 December 2010

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I guarantee it won't be easy. Suggestion box: vittorioamedeo.alessio@enel.com