For over ten years, sustainability in Enel has been based on a solid ethical system, a set of citizenship rules which everyone who works at Enel and for Enel must respect and apply in their everyday business, a distinctive feature of belonging to the Company.
Businesses, especially the leading multinationals, are increasingly a crucial intersection where the economic world and society can meet and discuss issues. For this reason Corporate Social Responsibility (CSR) is an absolute priority for company leaders in building an effective and virtuous business model.
Enel has adopted a careful strategy of CSR planning, monitoring and reporting, in other words covering all the policies on transparency, combating corruption, protecting the environment, and relations with the communities and with the people who work in and with the Company, including suppliers.
We have chosen to act always as “good citizens”, respecting the rules and laws of the countries where we work, following a set of shared values: ethics, respect, paying attention to people, social responsibility and results-orientation.
These values are the basis of the tools which the Group has adopted over the years: the Code of Ethics, Zero Tolerance of Corruption, the 231 Compliance Program and, most recently, the Policy on Human Rights, approved by the Board of Directors in 2013, which includes the United Nations Guidelines on Business and Human Rights.
In 2013, as part of the due diligence on human rights, we started the risk assessment process to identify the main human rights risks which the Company may run in carrying out its activities.
Multinationals which invest in sustainability nowadays set themselves the ambitious goal of achieving responsible profit, directing their business towards the so-called “creation of shared value”. Corporate policies and practices therefore seek to increase the Company’s competitiveness by improving the economic and social conditions of the communities where it operates.
The need for this new business model has also been recognized by the United Nations in negotiating the new “Sustainable Development Goals” for the post-2015 agenda, and by the European Union in its 2020 Strategy.
Enel has taken on board all these indications, acting in particular on two key processes: the supply chain and risk management. Likewise, our subsidiary Enel Green Power has established an action plan for the short, medium and long term to guarantee the integration of sustainability into its own processes and to create shared value by making rational useof the available resources.
In addition, Enel will continue to share its own sustainability know-how at regional, national and international level, by taking part in prestigious networks such as the United Nations Global Compact and Global Compact LEAD.
Last year Enel was one of the first companies to confirm its participation in the LEAD Board Programme which is designed for companies that are involved in the Global Compact LEAD and which aims to provide Boards of Directors with analyses on sustainability and on the need to integrate sustainability into corporate strategies.
The innovative policies which we have adopted in terms of CSR have enabled us to become acknowledged leaders in the processes for planning, monitoring, and reporting sustainability, gaining approval worldwide.
In order to improve the monitoring of sustainability performance and guarantee the traceability of CSR information, we are also creating a new data collection system. In addition, as regards reporting standards, Enel will join other global business leaders in the reporting field by taking part in the pioneering GRI G4 program.
The tools that we have adopted, such as for example the materiality matrix, have allowed us, starting from last year, to map the strategic objectives of the business and to match them to the expectations and needs of our stakeholders. In this way we can identify the CSR projects and initiatives which are considered priorities.
An example of this is our CSR “ENabling ELectricity” program, through which Enel contributes to the United Nations tenyear program “Sustainable Energy for All” (2014-2024). In 2013 under this program we took part in over 30 projects in 20 countries, achieving the target of 2 million beneficiaries a year ahead of time.
The next CSR activities will be developed in three areas which are considered priorities:
Over the years, Enel has strengthened the relationship between sustainability and the financial world, creating value from the integrated communication of the Company’s financial and non-financial results. The drive towards the highest sustainability standards, which Enel started eleven years ago, has been rewarded by the interest of socially responsible investment funds which, despite the difficult international economic situation, are continuing to increase in number. At December 31, 2013 our shareholders included 117 Socially Responsible Investors (up from 108 in 2012), representing around 15.6% of the identified institutional shareholdings (compared to 14.6% in 2012). In 2013, for the tenth year running, Enel was included in the Dow Jones Sustainability Index, a key index for the markets, which includes the best companies in the world in terms of economic, social and environmental sustainability. Enel was also reconfirmed in the FTSE4Good index and is involved in the CDP.
Enel’s commitment to sustainability is also reflected in its medium/long-term strategy to combat climate change, with nthe aim of its power generation plant achieving carbon neutrality by 2050. An integral part of this commitment is the Climate Strategy, which envisages action plans covering the whole sector: from production to distribution, from sales to end users, to emission rights trading. This has enabled Enel to reduce its specific CO2 emissions by 37% compared to 1990 (the base year for the Kyoto Protocol), and to confirm the target to cut CO2 emissions by 15% by 2020 compared to 2007 levels. In 2013, the percentage of “zero emission” power generation out of total Group production exceeded 46%, and the installed renewable production capacity reached 36.9 GW. For future years Enel has planned a further 6-billion euro investment in renewables, to promote all the best technologies, mainly in the markets with the highest growth potential and which have more available natural resources.
Technological innovation will allow us to make electricity production increasingly efficient and environmentally sustainable, by putting forward innovative solutions for all customers, from energy efficiency to electric transport, from smart grids to smart cities: all technologies in which Enel is a world leader.
In order to maintain our leadership in the global energy market and to achieve the best possible business results, we must continue in our drive to integrate sustainability into the business model and into corporate strategy.
The growth and economic development of a multinational such as Enel cannot be tied solely to its ability to produce value for shareholders. Rather, we want and we must contribute to making the world a better place, drawing on our culture, our values, our way of doing business, to the benefit of the Company, our colleagues, and the institutions and citizens with whom we interact.
Paolo Andrea Colombo
The Chief Executive Officer
and General Manager
Enel is strongly committed to supporting the United Nations “Sustainable Energy for All”
Over 2.3 million beneficiaries have access to electricity thanks to Enel
Over 30 projects in 20 countries
Reduction in economic barriers in Brazil and Chile
“In 2013 alone the new beneficiaries numbered over 63,000”
The poorest urban areas in South America are often characterized by the presence of open dumping grounds, which harm the environment and the health of the local populations.
Around 76 million euro of investments in research and innovation
Smart grid - Grid innovation
The most important initiatives and the main current projects concern smart grids which combine the use of traditional technologies with innovative digital solutions, making the management of electric grid more flexible, thanks to more effective information exchange
For Enel one of the main strategic levers to reduce CO2 emissions and at the same time to make its generation mix more competitive
Energy from the sea
During 2013, the marine device “R115” was put into operation off Punta Righini (Livorno, Italy), following its development thanks to technological collaboration with 40South Energy.
Efficiency in traditional generation
The increase in efficiency in primary uses is one of the fundamental activities to improve productive and environmental performance of Group plants.
Carbon capture and storage
Enel has been in the front line for a number of years in testing carbon capture and storage (CCS) technologies and, in 2013, reinforced its own technological know-how in the field of post-combustion capture developed at the pilot plant in Brindisi (Puglia, Italy).
Program to promote fishing
In 2013 a collaboration agreement was signed between the company and the organizations of fishermen, in order to undertake productive, individual or cooperative development initiatives, together with support for social initiatives, aimed at facilitating grants for the children of fishermen who wish to go on to higher education.
Endesa Chile will finance the ”fishing program” with a total investment of 4,890 million Chilean pesos (around 7 million euro) in 7 years, paid following achievement of the specific objectives included in the work program.
In this regard the company Corporación de Desarrollo de Coronel was set up by the municipality of Coronel, Endesa Chile and 14 other private companies.
This organization will be charged with guaranteeing the economic resources and coordinating the program to support fishing.
The Café Curibamba project of Edegel (Peru)
The Café Curibamba project is a social inclusion initiative of Edegel which was created to boost the economic development of the communities situated near the hydroelectric plant at Chimay, as well as the planned plant at Curibamba in the Region of Junín in Peru.
Due to the lack of suitable technologies, infrastructure and professional skills, the local farmers who used to produce coffee were having problems both in the cultivation of the plant and in selling the product.
Starting from this situation, Edegel saw an opportunity in the Café Curibamba project to revitalize the local economy. A team of specialists offered periodic training in loco to improve coffee production techniques, organizing visits to the plots of each farmer to check their organization and progress, and resolving any problems. In particular, the role of Edegel was to invest in improving the infrastructure for the production of coffee in order to guarantee for the future a high quality level for the bean.
The project has made possible the professional development of farmers, expanding their knowledge of cultivation techniques in order to improve the quality of the product and, at the same time, acquire the necessary organizational skills for its competitive marketing. At the end of 2013, the project involved 40 families from three rural communities (around 2,000 people) in the local area. In the first three months of 2014 another 100 people have already joined the project.
The actions taken have enabled the creation of a strong bond between the local community and the company, highlighting the latter’s role in encouraging economic development and improving the quality of life of the local population, while respecting and maintaining cultural traditions.
Enel illuminates art
Enel Contemporanea is the public art program launched in 2007 to promote a reflection on energy through the universal language of art.
Enel’s intention is to stimulate public opinion on an important subject: energy in its various forms, as a sustainable and renewable source. The project, which is now in its seventh edition, each year promotes unpublished works by international artists who, thanks to their acknowledged ability in research and innovation, contribute to underlining and disseminating the progress already made by the Company in this direction. Enel Contemporanea, year after year, has taken forward a research project on the motivations which drive art.
In 2013 Enel Contemporanea offered a large installation, Harmonic Motion – Network of dragons, by the Japanese artist Toshiko Horiuchi MacAdam.
Enel’s artistic lighting is based on a design philosophy aimed at energy saving and versatility, using the most advanced technological standards.
Among the most important interventions are the internal lighting of the dome and radial chapels of the Pantheon in Rome and the Diamante in Rome, the lighting of the Alcázar in Seville, the Roman Temple in Córdoba, the churches of Vejer de la Frontera in Cádiz, San Miguel de Bajo in Granada, Our Lady of Candelaria in Seville, San Pablo in Baeza and the Botanical Garden in Málaga (Spain), the temporary lighting of the Arch of Constantine for World Autism Day and the temporary lighting of Palazzo Senatorio in Piazza del Campidoglio in Rome on International Day for the Elimination of Violence against Women.
International Day for the elimination of violence against women
Enel was in the front line in the International Day for the elimination of violence against women promoted by the United Nations. On November 25, the Group, through Enel Sole, “lit” red Palazzo Senatorio at the Campidoglio, the headquarters of Rome city council.
In addition, in Italy Enel supported the campaigns held by the office of Social Policies and Equal Opportunities of Rome City Council and the Ministry of Labor and Social Policies with all its internal communications and with the internet channel which, on November 25, promoted video forums, debates, broadcasts and services on the issue of violence against women. In particular a collaborative project was launched with Telefono Rosa to enable all colleagues to turn to the association for information, advice and to make reports using the freephone number 1522. Support for the International Day for the elimination of violence against women has been extended also to the other countries where the Enel Group operates: in Spain Endesa collaborated with the Ministry of Health, Social Services and Equal Opportunities and adhered to the Ministry’s initiative “Business for a society free from gender violence”, with the aim of developing and promoting among its own employees awareness and measures to tackle this serious social problem. Also in Russia a dedicated freephone number will be promoted, which has been active since 2011. Through internal communication, a campaign on this issue has become a permanent feature in all the countries where the Group operates.
Bocamina plant (Chile)
In 2008, in terms of community relations, Endesa Chile, concurrently with the construction of the second unit of the Bocamina thermoelectric power plant, started the relocation of the families affected by the project, in line with the agreements signed with various organizations and supporting the community to improve its quality of life and the surrounding environment.
During 2013, Endesa Chile took part in various working groups with social organizations, the municipality and the Government, promoting public/private solutions in order to respond to the various issues concerning the project.
In particular on November 19, 2013 an agreement was signed which establishes the details of the relocation process and the accommodation program relating to the population of El Esfuerzo. The definition of this agreement was completed following joint work between Endesa Chile, the families involved, the authorities in the residential construction sector, the municipality and the companies selected to undertake the construction and infrastructure work. The working group with the population of El Mirador, on the other hand, led to the start of a public/private project to relocate 95 families who live in the area.
Besides the purchase of the land and the development of accommodation plans, Endesa Chile arranges transfer of household goods and legal consultancy to register titles to property.
In August 2013, the Superintendencia de Medio Ambiente (SMA) informed Endesa Chile of the opening of proceedings for a series of alleged environmental infractions.
In December 2013 Endesa Chile presented its defense and is awaiting the decision of the SMA.
In addition, various opponents of the power plant presented three Recursos de Protección against its operation. Under the second of these appeals, in December 2013 the Supreme Court, overturning the previous decision of the Appeal Court, granted the injunction requested by the appellants, ordering the stoppage of Group II of the power plant at Bocamina, which is thus currently on hold pending the decision on the appeal.
El quimbo (Colombia)
El Quimbo is the most important project in Colombia, and aims to build a 400 MW hydroelectric power plant in the region of Huila, which will meet 5% of national demand.
Right from the start, Emgesa has shown its openness to dialogue with the regional and national stakeholders and has developed a social and environmental management plan, which saw some significant developments in 2013. Emgesa has implemented initiatives for the resident landowning population, and each family defines, with the help of the company’s social team, the most advantageous option, case by case. The locations for the overall relocation have been established and agreed with the community. Emgesa has bought the land necessary to construct the accommodation, has drawn up the urban plan and a proposal to allocate the various plots of land which has been agreed and approved by the communities. In 2013 64.4% of the agreements has been signed with the families to be relocated. At the end of the works to construct the infrastructure, Emgesa will deliver the new homes to the communities, equipped with essential services (drinking water, energy and waste water treatment) and inserted in an urban and social context which corresponds to the previous situation, as well as an efficient irrigation system for the area which is destined for agricultural use.
In 2013, Emgesa relocated 8 more families, thus bringing the total number to 18. The families each received 5 hectares of land with a house of 100 square meters, technical support for implementation of the agricultural production plan, livestock to start a business and psychological help to assist with entering the new context.
In addition, the company arranged to make a further 61 compensation payments to families who rejected relocation; so far compensation has been paid in 166 cases.
Another commitment by the company was to assist people who used to run a business in the areas subject to expropriation for construction of the project, to restart their business, which was mainly agricultural. In 2013, it was arranged to pay compensation for 525 cases to this end.
In addition, under the agreements reached with the communities in the Mesas de Concertación por la construcción del Proyecto Hidroeléctrico El Quimbo, Emgesa has invested resources for a total of 16,500 million pesos (around 6 million euro), dedicated to various projects in the six municipalities in the area directly affected.
In particular during 2013 the following activities were undertaken:
During 2013, despite this intense interaction with the community, various conflicts in regard to the project emerged, which also led to the occupation of land and the closure of access routes to the worksite, preventing or delaying the undertaking of the technical and social activities planned by Emgesa. The company has constantly responded to each of these groups of protestors, reaching specific agreements and resolving all the conflicts by the end of 2013. In November, in the presence of the Human Rights Delegate of the Vice Presidency of the Republic and other Colombian authorities, the final cases of land occupation were resolved voluntarily and peacefully, and some cases were agreed individually.
Neltume is a hydroelectric project “de pasada”, at Neltume in the municipality of Panguipulli in the Region of Los Ríos. In 2006, Endesa Chile started a consultation process with the indigenous communities in order to incorporate their requests into the development of the project. In particular, since 2007 there have been information offices in towns close to the project area and in 2011 some contact was made with the Casas Abiertas communities to facilitate their participation.
The realization of the hydroelectric project will involve the so-called “ceremonial ancestral site” of the indigenous populations that live in the area and some families have opposed the realization of the project due to its impact on the traditions of the community.
Currently, in Neltume there is a company information office which manages relations with civil society organizations and the local authorities in order to reach agreements. In 2013, Neltume was the first project of Endesa Chile to start a consultation process with indigenous populations. In particular, on April 29, 2013 the Environmental Assessment Service of the Region of Los Ríos issued Resolución Exenta no. 002 which envisages, as part of the environmental assessment of the project, the realization of an indigenous consultation process, in accordance with the provisions of convenio OIT no. 169, with the communities, populations and groups present in the area affected by the plant. The Service met each of the eight communities identified in order to set out to them in detail the consultation process and invited them to appoint their own representatives. At the same time the company started a series of meetings with representatives of the Service (national and regional), making itself available to review the initiatives in favor of indigenous communities.
In 2013, Endesa Chile took part in the working groups with the communities and towns close to the plant (Puerto Fuy, Neltume, Choshuenco and the indigenous communities of Juan Quintuman and Valeriano Callicul), which led to:
Punta Alcalde (Cile)
The Supreme Court of Chile, in bringing to an end the dispute which started in January 2013, gave the go-ahead to the construction of the thermoelectric power plant at Punta Alcalde, in the Province of Huasco in the Region of Atacama, thus enabling the Enel Group to further expand its presence in Chile.
The construction work envisages the realization of two generation units of 370 MW each, a mechanized quay for unloading coal (which will be transported by sea), the creation of a fuel deposit and a tank to store ash and process residues. In addition, a water desalination and demineralization plant will be built as well as plant to vacuum and cool the unloading system.
The main combustible source will be coal and the production units will be equipped with specific instruments to reduce emissions.
The plant will be connected to the substation of Maitencillo through a 220 kV transmission system.
As established by the Supreme Court of Chile, the power plant must monitor the temperature of the discharge fluids, in other words the sea water needed to cool the stacks, and publish the results of these checks.
In 2013 specific activities were undertaken to involve the population, with the aim of collecting their doubts, concerns and requests in relation to the project and to identify and assess the economic, social and environmental risks.
Following this analysis, the following opportunities connected to the project were identified:
As part of the environmental impact assessments envisaged by the law, specific processes of “citizen participation” were set up in the town of Huasco and at Freirina, Maitencillo and Caleta Los Bronces. At the same time Endesa Chile is constantly engaged in updating the register of social, local and operational organizations of the communities of Huasco and Freirina, which are in the area where the project will be developed, with the aim of setting up and maintaining an effective channel of communication.
Even today 1.3 billion people worldwide do not have access to electricity and more than 2 billion people are served by infrastructure which is substandard in terms of energy efficiency or they cannot pay for energy because of income levels which are too low.
Enel is strongly committed to supporting the United Nations “Sustainable Energy for All” initiative through its own CSR program, ENabling ELectricity.
The program, which the Company launched at the end of 2011 as a member of the United Nations Global Compact LEAD, envisaged doubling the number of its beneficiaries worldwide by the end of 2014. The objective was instead reached in 2013 with over 2.3 million beneficiaries who, worldwide, have access to electricity thanks to Enel.
“ENabling ELectricity” is realizing over 30 projects in 20 countries based on innovative business models aimed both at people who live in isolated rural areas and those who live on the outskirts of major cities. The program concerns various aspects of access to electricity: from projects which guarantee basic access to energy to projects which improve access to technology and infrastructures, from projects which remove economic barriers in low income areas, to initiatives to develop and share knowledge and professional skills to support the training of qualified local operators who can assist the growth of the electricity market in emerging countries.
Here below is the list of the main projects which Enel is working on for the following three types of initiative: access to technology and infrastructures, capacity building and reduction in economic barriers.
The poorest urban areas in South America are often characterized by the presence of open dumping grounds, which harm the environment and the health of the local populations. In the same areas there are frequently thefts of electricity from the grid by the people who live there, which cause huge losses and represent a serious accident risk for the people who connect to the grid illegally.
The Ecoelce and Ecoampla programs in Brazil and the Ecochilectra program in Chile aim to stimulate, through economic incentives, waste collection and recycling and, at the same time, make “legal” use of electricity more accessible: customers who bring their waste to specific collection points receive discounts on their electricity bills in proportion to the quantity and type of waste they bring.
The mechanism brings various types of benefits:
In 2013 alone the new beneficiaries of the projects numbered over 63,000. In Peru there are also flexible financing schemes or schemes for new connections, with the aim of facilitating access to energy for poor communities in cities and in new settlements.
The “Luces para aprender” (Lights to learn) project aims to improve the quality of life of the school-age population in communities which are very socially vulnerable, by promoting the social and digital inclusion of students and the communities in general and is undertaken in collaboration with “Organización de los Estados Iberoamericanos”. In Peru this program envisages the installation of photovoltaic panels for the direct benefit of schools in the community of Unión Cordorbamba, which thanks to the electricity can enjoy internet access and via satellite can access the national platform of the Ministry of Education. The project also envisages the supply of solar panel kits for various homes in the community, in order to enable children to be able to study at home when it is dark. The program is also being developed in Brazil through the involvement of schools as from next September.
Energy saving is still an important issue for low income segments of the population. In Latin America various programs have been developed for these customers in order to raise awareness and educate them about energy efficiency and safe electricity use. Through home visits, meetings and contact points, children, young people and adults of the various communities learn the concepts of efficient energy use and, at no cost, can exchange their lamps or fridges for highly efficient alternatives. For example in Brazil the “Cambio Eficiente y Luz Solidaria” program operates and in Colombia the “A tu lado” program, which started in 2013 and which has seen the involvement of over 110,000 people.
The commitment to the development of host communities is another key element in Enel Green Power’s approach in the territories where it operates: for example the partnership with the Indian NGO, Barefoot College – as part of the broader “ENabling ELectricity” program of the Enel Group – promotes rural electrification and female empowerment in 8 countries in South America (Chile, Peru, Guatemala, El Salvador, Panama, Colombia, Brazil, Mexico).
This collaboration has so far seen 33 semi-illiterate women (“solar grandmothers”), in particular from small isolated rural villages which are poor and have no access to electricity, move to north India for 6 months in order to learn how to install and maintain small photovoltaic systems.
Currently the project has enabled the installation of over 1,000 solar kits (725 in Peru and Chile and 305 in Guatemala and El Salvador) in about 36 communities in Central America. Part of its success is due to the involvement of the “grandmothers” of the villages. Giving tools and a profession to those who are considered the most reliable figures in the community means actively contributing to the independent development of the local area, bringing a quality of life to the community which goes beyond the project, and thus removing reasons for migrating to the city.
In addition, the communities which take part in the project agree to make available a communal area to set up a laboratory/workshop for the women. The individual heads of household must pay something for the service provided by the women in installing, maintaining and repairing domestic photovoltaic plants. The amount to be paid is very low and, in any case, less than the families would pay to procure lighting systems (candles, kerosene, oil, etc.), but guarantees the sustainability of the service over time and at the same time income for the women.
The history of the project with Barefoot College, including its organization and management, is set out, using video footage and the direct testimony of the “grandmothers”, from the journey to India to the electrification of their respective villages, in the documentary “Bring the Sun Home”, made by two young students from the Palermo School of Cinematography. The documentary, which was presented in Rome in June 2013 on World Environment Day, has been screened at prestigious film festivals, creating a lot of interest and winning prizes.
In Latin America there are various projects targeted at young people with limited economic resources and who risk social exclusion, with the aim of giving them access to professional education and helping them find work. One of the most important is that of the Instituto Superior Tecnológico Nuevo Pachacútec in Peru, which is located in one of the biggest bidonville towns around Lima, in the district of Ventanilla-Callao. This professional training project has so far enabled 152 young people to study as electrical engineering technicians for a three-year course and to join the job market with particular reference to the electric sector, with an employment rate of over 90% due to the lack of suitably qualified figures on the Peruvian market. Besides the employment prospects, the main benefits of the project have regarded the involvement of women and above all the development of an area which was extremely poor. The project is also supported by the active volunteer participation of staff from Edelnor, one of the Group companies in Peru.
Other similar projects are: in Chile the “Cátedra Chilectra” project which aims to prepare over 500 students from technical colleges for recruitment to the electric distribution sector, in accordance with standards of operating excellence and safety. In Brazil there is the “Endesa Brasil Oportunidade” project which envisages advanced professional training courses in electrical engineering for poor youngsters. In Colombia the technical training program on the distribution and sale of electricity in the area of Bogotá trains young people at risk of social exclusion who are employed not only in Group companies, but also in companies which are part of the Company’s supply chain. In Spain too there are professional training projects for young people from low-income families, developed in collaboration with Caritas.
The TOB, for which Enel has an international patent, is an independent habitable structure which is easily assembled and which integrates photovoltaic modules and accumulation systems and is designed to be able to house various technologies to exploit renewable sources on the basis of the specific resources of the various sites.
TOB produces electricity and accumulates it to make it available when necessary. It is flexible thanks to modular components which enable easy assembly in various forms, depending on the requirements and needs of the populations which use it.
In addition, it is possible to include within it all the necessary facilities for the services that communities need (schools, sick bays, recharging systems, etc.).
Following the experience acquired in the second half of 2012, the second prototype was built, the TOB 2.0 system, in which the reduction in bulk and the consequent drop in weight have made both transport and setting up simpler, thus favoring the manual assembly of all the parts. During 2013 feasibility studies were started relating to the installation of the TOB 2.0 system in remote areas which are isolated from the grid in Latin America and a pilot project was launched for its use at the Smart City of Búzios in Brazil.
Innovation is a key element in responding effectively to the challenges of the energy market and means anticipating technological trends. The multinational size and cultural diversity in the Group are an important resource which Enel creates value from, also by the exchange of experience and know-how acquired in the various social and economic contexts in which the Company is present. In this way not only are successful innovative activities built upon, but an effective mechanism is implemented which stimulates continuous improvement, creativity and innovation. In 2013 Enel continued its commitment to the strategy, definition and management of the portfolio of innovative projects and the dissemination of a culture of innovation across the whole Group, thanks also to the inclusion in the Holding of a specific unit dedicated to innovation.
In 2013 Enel realized 234 projects with an investment of around 76 million euro in research and innovation, of which:
To address the future and growing demand for energy and the need to mitigate climate change, energy efficiency is a key element, from production to distribution up to final uses, promoting greater awareness in consumption.
The most important initiatives and the main current projects concern smart grids which combine the use of traditional technologies with innovative digital solutions, making the management of electric grid more flexible, thanks to more effective information exchange. The realization of innovative digital technologies also enables the monitoring of the whole grid in order to intervene promptly when there are breakdowns and to guarantee an optimal supply of electricity.
The electricity grid is no longer just a channel to transmit and distribute electricity from large power plants to end users, but is becoming a smart grid which can handle two-way flows of energy, can help producers and consumers interact, can establish consumption needs in advance and is flexible enough to adapt the production and consumption of electricity. It is a grid that can communicate by exchanging information on energy flows, managing demand peaks with greater efficiency, and so avoiding interruptions to electricity supply and reducing loads where necessary.
One of the most immediate applications of smart grids is the grid integration of renewable energy, thus contributing to achieving the environmental objectives set by the European Union.
Enel is heavily engaged in realizing an innovative and technologically advanced network of intelligent infrastructure for the recharging of electric vehicles so as to encourage their spread and thus promote sustainable transport.
At the end of 2013 there were over 1,300 recharging stations installed in Italy and over 300 in Spain, managed remotely by the EMM (Electric Mobility Management) system which allows supervision of all the recharging processes, software updating and diagnostics.
In March 2013 Enel and Eni signed an agreement for the development of Fast Recharge (43 kW AC and 50 kW DC) solutions at service stations, with the aim of studying the possibility of extending the maximum range of electric vehicles and identifying smart grid solutions (and in particular storage solutions for electric vehicles) at service stations.
In December 2013, Enel and IKEA signed a Memorandum of Understanding on environmental sustainability issues in the transport of people and goods. The first pilot project concerned car parks at IKEA stores throughout Italy, where 72 recharge points have been installed.
The know-how and innovative technologies developed by the Enel Group have enabled the realization in various parts of the globe of the “smart city” concept, bringing together in a single urban model environmental protection, energy efficiency and economic sustainability.
The rationalization of energy consumption, the production of energy from renewable energy sources, the realization of new products and services, as well as the activation of new scientific and technological know-how at local level, help create an efficient and integrated urban ecosystem. Smart grids represent the basic infrastructure for numerous energy efficiency measures: transport systems are sustainable, public lighting is efficient, buildings are equipped with sensors and devices aimed at rationalizing energy consumption and creating greater awareness on the part of citizens, energy grids are managed “smartly”. The electric grid is enhanced to guarantee greater capacity to integrate renewable production plant and to set up new added value services for citizens, such as “Active Demand” and widespread electric transport.
Enel is dedicated to the retail market and the dissemination of electricity production in small-size self-generating electric units which are spread or located in various places in the local area (therefore decentralized) and attached directly to the electricity distribution grid.
In particular in Italy, Enel developed turnkey solutions designed for residential and business customers, for photovoltaic plant (Raggio senza pensieri), thermal solar (Scalda senza pensieri), mini-wind, geothermal, as well as integrated solutions (Casa Efficiente and Azienda Efficiente).
During 2013 Enel took part in the realization of the prototype called “Smart User”, a control system which can communicate and control generators and loads, and “actively” interface with the external electric grid and the energy market as part of active demand management. Through smart management of their own energy resources, a Smart User can obtain economic advantages by reducing energy costs and increasing efficiency.
Also of great interest is the on-going project in Spain Novare Energrid, an open and modular Energy Management platform, based on distributed infrastructure to manage grid flows. The system allows management of energy production and consumption through nodal points (residential centers, business areas), thus creating a decentralized system. In addition, the project aims to promote improved energy management in buildings, through dialogue between consumers, producers and end users.
The technological development of the electric grid enables energy distribution to be managed more efficiently and flexibly, thus providing an adequate response to the varying needs of customers and helping them adopt more informed consumption behavior. For this reason Enel has launched various projects both to analyze customer behavior and to give customers themselves the possibility of monitoring their own consumption, thus facilitating acquisition of greater awareness of their own consumption habits and the adoption of more efficient behavior. The main projects underway in Italy in 2013 were:
In Spain and South America too there are various energy efficiency projects underway, including the European “EnergyTic” project which aims to develop various innovative solutions to enable customers to save water and energy. Enel is also active in energy cost-efficiency for tertiary sector buildings and has launched various projects, both in Italy and abroad, in order to verify in the field the savings that can be made from the deployment of different automation technologies.
In order to optimize and rationalize energy consumption, Enel has also arranged various commercial offers for families and business customers, and has undertaken awarenessraising and information-giving initiatives.
In Italy, Romania, Spain, Peru and Chile the commercial offers envisage a price differentiated on the basis of when the energy is consumed, that seeks to direct consumption towards the evening and nighttime, thus encouraging an overall improvement in efficiency in the electric sector (more efficiency in production and distribution) and important environmental benefits. In order to help customers correctly manage the hourly tariff, and make them better informed, it is clearly explained how to read the bill in order to verify the tariff periods, so as to correct any anomalies and to guarantee the maximum saving possible.
Other offers, which are defined as “green”, are addressed to those customers who are most sensitive to environmental issues, because they provide a guarantee that the energy source is renewable or because they include an amount for financing renewable energy sources. In Romania Enel has launched the Energia Verde product, while in Italy there is Semplice Luce which besides being “green” encourages residential customers to modify their consumption behavior by rewarding them with lower prices for consumption below a particular monthly threshold.
As for residential customers, 2013 saw the launch, in Italy, of the pilot project “Energy Services Mass Market”, which proposes a range of efficient “turnkey” solutions which can be paid by installment and which make Enel Energia the sole interlocutor with the end user for all sales activities: installation, assistance for authorization procedures and incentives, extending the guarantee and maintenance. The products launched in the pilot program concern photovoltaic and thermal solar systems, condensation boilers, heat pump water heaters and air-conditioning units.
In Italy Enel Energia’s loyalty program Enel Premia continued in 2013 too and offers “green” prizes (such as the possibility of converting Energy Points into trees planted under reforestation projects) and envisages, among the various methods of collecting points, a bonus should the customer have consumed less than in the same period in the previous year. In addition, stage two of Enelmia was launched which envisages the development of a prepaid card offering discounts to Enel Energia customers in national and local shops which join the scheme and which are chosen from among the spending categories which have the biggest impact on household budgets: food, supermarkets, petrol, electronics, health and travel.
In Romania two guides were prepared for residential customers:
Renewable energy is for Enel one of the main strategic levers to reduce CO2 emissions and at the same time to make its generation mix more competitive.
Enel is engaged with all the main renewable generation technologies currently in use and seeks to identify technologies that can help exploit resources which are not yet part of the mix, such as energy from the sea.
During 2013 net electricity production from renewables was 93,089 GWh, with new installed capacity of 967.3 MW.
The design review and test stages of the innovative “Archimede” (5 MWe) thermodynamic solar facility at the Enel site at Priolo Gargallo in Sicily (Italy) were completed. During 2013 the facility was optimized, enabling the solar field to be run for around 4,000 hours, during which the procedures to operate the facility were further refined. In addition, an experimental circuit was built and launched in order to test, besides the innovative components, a new mix of melted salts. This mix, which was used for the first time in the world in a plant that uses Parabolic Trough technology, has a lower solidification point than the standard mix (~150°C vs. 250°C).
In 2013, as part of the activities relating to photovoltaic solar undertaken in collaboration with the Enel laboratories in Catania, technologies and innovative plants components were identified to be developed above all in the short to medium term. In addition, work was undertaken at the laboratories in Catania to define forecasting models for the degradation of photovoltaic modules and work continued in regard to life cycle assessment and management of plant at its life end.
The new model of the “Diamante”, a system which integrates photovoltaic panels and accumulation systems, was installed and officially opened near the premises of the Architecture Faculty of “La Sapienza” University in Rome.
In 2013 the project continued to refine forecasting models for short to medium term electricity production from wind plants (up to 72 hours), models which are used in all the main wind farms in Italy and Romania.
Testing is also underway with providers of meteorological data, in order to obtain increasingly precise forecasts to enable more integration of renewables into the electric system, and the benefits from the use of innovative instruments to measure wind speed and direction are being assessed.
During the year work was completed on testing a two-bladed turbine which, thanks to its aerodynamic form and reduced weight, can be used even at very low wind speeds, thus increasing the annual energy yield. The first turbine, with nominal power of 55 kW, was connected to the grid during the third quarter and is being tested at the Enel site at Molinetto in Tuscany (Italy).
The detailed design was completed for the first thermodynamic solar (CSP) plant coupled with a binary geothermal power plant (Stillwater, Nevada, USA), where the heat which is concentrated by the linear parabolic mirrors is used to heat the geothermal fluid before entering the primary exchangers, thus generating additional thermal power of 17 MW. The solar plant will be fully completed in 2014.
As for generation from biomass, Enel’s activities during 2013 focused on developing small-scale technologies (100 kWe-1 MWe) which can guarantee high levels of efficiency and flexibility.
As part of the BioPower in Tuscany project, which is financed by the Region of Tuscany and involves numerous small businesses, universities and research centers, an optimal grid of small size plant was identified in the Region, taking into account the availability of biomass, economic aspects connected to its collection, transport and pre-treatment, and the characteristics of the existing production facilities.
Finally, during the year the monitoring ended of the co-combustion of Refuse- Derived Fuel (RDF) and coal (5% RDF, 95% coal) at unit 4 of the electric power plant at Fusina in Veneto (Italy), which enabled the study of the performance of a traditional electric power plant when it is fuelled by biomass to produce renewable energy.
The issue of biomass is also being studied in Brazil with the Capim Elefante project to improve and optimize the life cycle of this species of grass, in order to increase the supply of biomass in the Brazilian market and in other countries in South America.
During 2013 design solutions were developed that can optimize energy production from hydroelectric plants by using water releases due to minimum flow rates.
During 2013, the marine device “R115” was put into operation off Punta Righini (Livorno, Italy), following its development thanks to technological collaboration with 40South Energy. The annual production forecast is 210 MWh by converting wave energy, thus guaranteeing high safety levels and absolute environmental compatibility. Following the positive test result, the partnership with 40South Energy was enhanced and the aim is to expand supply of the devices and to develop a new and larger 2 MW machine.
In terms of energy production, the medium/long-term objective is gradually to transform Enel’s generation portfolio towards a more balanced mix of sources (thermoelectric, nuclear and renewables) which uses increasingly efficient technologies. The increase in efficiency in primary uses is one of the fundamental activities to improve productive and environmental performance of Group plants.
Enel has been in the front line for a number of years in testing carbon capture and storage (CCS) technologies and, in 2013, reinforced its own technological know-how in the field of post-combustion capture developed at the pilot plant in Brindisi (Puglia, Italy). In Spain, as part of the “OXY-CFB-300” project aimed at defining a flexible and competitive CCS technology, a geological site was identified and assessed which is suitable for the storage of CO2 and is a valuable asset for future developments. Enel is also engaged in studying issues relating to reducing CO2 emissions at traditional plant. In 2013 the test stage continued for the plant at Fusina in Veneto (Italy), the first example in the world of a plant fed with pure hydrogen or a mix of hydrogen and methane, and the experimental center in Livorno is home to pilot scale tests as part of the research into oxygen combustion.
Enel undertakes various activities relating to the development of technologies to control emissions and assess their impact on the environment. Research in the environmental field aims not only to follow scientific progress but also to lead it by playing a proactive role, thus managing to identify possible improvements. The know-how developed by Enel in this field enables the assessment of impacts on the environment in terms of air, water and soil, going beyond the simple monitoring prescribed by the current legislative framework.
During 2013 a new activity was started in relation to water management at thermoelectric power plants, focused on identifying integrated solutions and/or new processes to reduce the use of water. Of particular interest is the Laguna de Enfriamiento project in Chile, which aims to assess a more efficient cooling system for thermal power plants.
In the same period, Enel focused on the following issues: finalization of low-cost techniques to reduce NOx emissions at the key turbo gas power plants which guarantee grid stability; development of a tool to monitor and control thermal gasand coal-fuelled power plants that can optimize operations in a flexible system and so reduce supply problems, consumption and emissions; study of processes that can increase the efficiency of plant by recovering energy from thermal waste and process optimization; study of new technological solutions (for example new materials) in order to increase the reliability of plant operating in a flexible system. As part of the scope of the International Division, projects were started to increase performance and to control emissions of pollutants for plant in Russia (Reftinskaya) and Slovakia (Nováky).
Enel continues to work on the development of advanced applications for sensors, diagnostics and automation to increase the reliability, safety and efficiency of Group production plant and to reduce accidents during construction, maintenance and normal operations of Group plant.
The snapshot provided by the materiality analysis is the basis on which to develop and define the sustainability priorities which the Group intends to adopt in future years. The 2014-2018 Sustainability Plan guidelines focus on the issues which have emerged as the most important from the materiality analysis, identifying for each commitment the specific objectives and/or targets which Enel takes on for future years at Group level.
Creation of economic and financial value
Growth in renewables
Access to electricity
ESG risk management
Correctness and transparency
Mitigation of emissions
Efficient use of water
Global Environmental Management
Responsible relations with communities
Respect for human rights
Quality for customers
Development of people
Diversity and equal opportunities
Health and safety at work
Responsible supply chain