Enel Roadmap: Excellence in Grid Management

1. Enel Roadmap toward Excellence in Grid ManagementTrends in Power Industry in the European Context VIII Antonello Buondonno Head of Europe and Americas Business DevelopmentInfrastructure and Network Division Spindleruv Mlyn, April 18th ,2013 1

2. < 500 MW < 1.000 MW < 2.000 MW < 10.000 MW > 10.000 MW Representative offices, financial holdings, operative branches, commercial companies Enel: aninternationalenergyoperatorItalianCore. European Base. Global Strategy* 40 countries 61 mln connection points Listed on: Milano SE (1,5 mln Shareholders) EBITDA: 17,7 bln € Installed capacity: 97,3 GW Annual output: 290 TWh Energy distributed: 430 TWh UP-Stream Gas: 984 MMboe* Reserves 680 MMboe** Resources Employees: 75.300 (< 50% in Italy) NG Prospective Resources NG Reserves 1st utility in Italy, oneof the largest in Europebyinstalledcapacity. Presentthroughout the entireelectricity and natural gas valuechain * year-end 2011 **MMboe: Million Barrels of Oil Equivalent

3. Enel Networks in the worldÁreasofpresence Uso: • 1,8 mln km línes/ cables • 430 TWhEnergy Distributed • 61 mlnPoint of delivery inserire classificazione • ROMENIA • 2nd Distribuitor(30%) • 2,6 MlnP.o.D. • COLOMBIA • 2nd Distribuidor(24%) • 2,3 MlnP.o.D. • BRASIL • 5,5 MlnP.o.D. • PERU • 2nd Distributor(23%) • 1,1 MlnP.o.D. • SPAIN • 1st Distributor(35%) • 13 MlnP.o.D. • CHILE • !stDistributoor(32%) • 1,5 MlnP.o.D. • ITALY • First Distribuitor(80%) • 31,5 MlnP.o.D. • ARGENTINA • 2nd Distributor(16%) • 2,3 MlnP.o.D.

4. Agenda • Italian market context and Smart Meter Regulation • The roadmap to smart networks and operational excellence • Envisaging the future Infrastructure

5. Italian Regulatory framework Regulatory context Enel Distribuzione Focus on core business Enel starts deployment before liberalization and unbundling based on financial return/ operational benefits evaluation • Bundled Distribution & Sales organization 1999 Smart Meter start-up • Unbundling of Distribution and Sales • DSO keeps responsibility for Metering & Reading activities Enel anticipates the changes and reengineers its internal processes to cope with new challenges in efficiency, quality of service, customer relations etc. 1999-2007 Progressive liberalization of the electricity sector • In 2006-07 Regulator adopts new metering rules • confirming approach on Smart Meters with mandatory installation within 2011 for all electricity customers • ToU for all customers within 09/2012 Enel completed in 2006 the installationofapprox. 31M smartmeters. In 2006, the Italian 2007-2011 Smart Meter Massive deployment

6. ItalianRegulatoryframework - Impact ofsmartmeter on regulatedmeteringactivities Uso: aziendale • Real consumption billing • Mandatory for all customers • Set at min. 95% for readings • -85% contractual load limit for 10 days, "real time" reconnection • Allowance of +20% load limit • Recording of customer's interruptions and voltage variation • Improved Trader-Customer relation/ leverage to promote competition and spreading of market efficiency • New readings rules • Time of use tariffs • Readings target success rate • New rules for bad payers management and reconnection • Load management • Better management and monitoring of quality of service • Increase in market competition

7. PV13 Market Dynamics – Enel Distribuzione in Italy Free Market customers (Mln) Distributed Renewables (GW) • 370.000 Prosumersconnected • Connections(2012): • 4000 LV request /week (maxlevelreached) • 0.5MW/AVG request MV (min.) • Smart Metering(2011): • 403 Mil remote readings • Commercial Quality 99.75% (AEEG) • 9.4 Mil remote work orders • Approx. 250.000 Switch/month Connections(GW) 4,3 3,7 3,6 a2010 a2011 b2012

8. Agenda • Italian market context and Smart Meter Regulation • The roadmap to smart networks and operational excellence • Envisaging the future Infrastructure

9. Process reengineering Enel Distribuzione roadmapHeadingtowardsefficiency Automatic Meter Solutionsin Europe • 41 m. meters in Europe • 97% daily success rate of the operations in Enelsgrid (2012) Smart Grid/Network Automation • 2.100 HV/MV substations remotely controlled (100%) • 115.000 MV/LV substations remotely controlled (80% of customers) with automatic fault clearing procedures Asset Management in Italy • Satellite mapping of network assets • Database of network events (outage, fault detection ….) • Optimization of network investments based on a risk analysis Work Force Management • 6.100 Enel teams connected +GPS localization • ENEL cartographic on board • Mobile applications for all Field Operations Smart Meter and process optimization are the cornerstone to deliver value to stakeholders and partners

10. Process reengineering 80 €/ customer 52 €/ customer Enel Distribuzione roadmapImpact ofTechnologydeployments: toward a newparadigm in network management OPEX per client CAPEX per client SAIDI (minutes per client ) Opex reduction: - 40 % Quality of service: +67 %

11. + 60% + 95% + 93% - 19 % Enel Distribuzione roadmapBenefitsfor the customers: Reductionoftariff network component Tariff components Eurocent/ kWh 16,18 14,8 4,22 3,39 10,12 Taxes system charges 2,19 9,47 8,92 Generation and supply * 4,84 3,09 Grids 2,49 2,49 1999 2006 2011 Net benefit to consumer

12. Smart Meter Enel Smart Meterexperience Uso: Uso: pubblico pubblico • World wide mostadvanced and fieldproven project • 34 M Smart Meterinstalled in Italy on Enel LV network • 5 MsmartMetersinstalled on otherDSOsnetworks, in Italy and abroad • A new, state-of-the-artsolution(meter, concentrator, AMM system modules) developedlately, maintainingENEL traditionalrobustness, reliability and costeffectiveness • 13 M Smart Meternow under deployementin Spain, 3 M alreadyinstalled , the largest and fastest project in Spain

13. Smart Meter Enel Smart Metering SimplifiedArchitecture LV lines PLC Head-End System MV/ LV substation AMI Control Center 2G/ 3G public TLC infrastructure

14. 2010 2011 Enel Smart MeteringInteroperability and openness Smart Meter • International non-profit association to maintain and support the open communication protocol for Smart Metering solutions • Board of Directors from Enel, Endesa, ST, CESI, Siemens; • Up to May 15th 2012: 30 members among world leading companies and institutions, from different business sectors, have already joined the Association 2012 Founding Members

15. Speedofimplementation Massive roll out Valuecreation International manufacturing International standards Crossover technologies Continuousinnovation Smart Meter Smart MeteringEconomicsKey success factors FAST implementationofimprovements PLC for SM + G2/G3 for DC open technologies & solutions Outsourcing of manufacturing/OEMs + Enel onsiteteamstoensurequality & costs • 20-25% yearlysubstitution rate (Project completion in 4-5 years) • all LV metersinstalled in parallel & uniformlotsto anticipate savings

16. Smart Meter Uso: pubblico Smart Meter Project Cost Benefit AnalysisProject’s key indicators Italy 2001 Spain 2010 13 Mln 85% 15 5 Years 1,6 Bln € 15 years • NumberofMetersinstalled33 Mln • Monophase 90% • Poliphase 10 • target:~100% customercoveragewith full feature/ remotelymanagedmeters • Roll-out 5 Years • CumulatedCAPEX*2,1 Bln € • YearlyRunningCosts ** 67,3 Mln € • YearlySavings ** 450 Mln € • MeterAverage Life 15 years 5 years PBP

17. Smart Grid Enel Experience in Network Remote Control and Automation • 28Controlcenters (Italy) • 100% Remotelycontrolled HV-MV substations • 32+% Remotelycontrolled MV-LV substations • 100% AutomatedMV feeders( Selfhealing network, reliability, security ofsupply

18. Smart Grid TSO AT MT HV/MV Subs (TPT / TPT 2000) STUX / STM MT MV/LV Subs (UP-RTU) BT Enel Remote Control and AutomationOverall Architecture • The ENEL System for Grid Automation and Remote Control can be divided into 3 main Macro-blocks: • Central systems (STU-X/STM); • Remote Terminal Units (TPT2000 + UP + RGDAT) • Telecommunication systems (Data network); • Ensures secure communication and data feeding corporate systems Corporate systems / Intranet

19. Smart Grid Remote Control and Automation System Remote Terminal Unit (RTU) for Primary (HV/MV) Substations • TPT2000: Current Enel Standardized Primary Substation RTU • Digital channels, IP networks • Always on connected to the center • Collect, aggregate and make available to the center data from the Primary Substation: • Alarms • Measurements • Signals

20. Smart Grid Remote Control and Automation System Remote Terminal Unit: UP Enel Standard for MV/LV Substations • UP provides remote commands, local automation, alarms, measure … • Enel Standard component UP is available for both indoor and outdoor use, and in two versions, capable to manage up to: • 8 Switches • 16 Switches • For indoor applications • Manage both MV and LV motorized switches • For pole top applications • Pole mounted • ManageSF6 insulated switches

21. Smart Grid Remote Control and Automation System • MV Automation: RGDAT, ENEL Standard Fault Detectors • Composed by current & voltage sensors + electronic unit connected to RTU in substation • Ensures • Detection of short circuits Non directional 500A • Detection of ground faults • Directional detector (the direction can be set from remote) • High sensitivity (up to 6kOhm in compensated neutral situations • Full operation in compensated and isolated neutral condition • MV input voltage detector

22. Smart Grid Remote Control and Automation System • MV Automation: RGDAT OUTDOOR Enel standard Fault Detectors for outdoor installation RGDAT Outdoor Voltage and current sensors • Allows automation of pole top switches installed on overhead networks • (mainly rural): • detection • and isolation • of faulty branch

23. Smart Grid Remote Control and Automation System Modular MV Switchboard • MV/LV Substation Automation rules – block diagram UP AS LV Board Batteries 24V + Charger Line Module Line Module Line Module TR Module 230 Vca Vo E Electronics 2G/3G Modem Iomo I4 Connectors I12 RGDAT MV cables Cables for remote control power signals/measures control

24. Metering Other Company applications Network STUX/STM Smart Meter/ Grid ST Remote Control and Automation System ST Web Applications ST Web Applications Remote Control and automation system – ST Web Applications

25. Smart Grid Enel EMM ElectricMobility Management • EMM Remote management mainfeatures • Remote management • Activation, Configuration Localization • Trouble Management • Multi DSO, with Roaming service • Customercentric • Management of individual Customer Contracts, • prepaid • Gridintegration • Flexibility of charging according to energy availability (distributed generation). • Storage of eventual energy overproduction. • Voltage control assuring the quality of service. www.enelmobility.it

26. Smart Grid ElectricVehiclerecharginginfrastructureeMobility Italy – Chargingstations design and certification • Key Features • Meteringgrademeasurementofenergyusage • System accesswith RFID ID card • Security • Flexiblecommunication: 3G and PLC enabled • Identification and authorizationtochargefrom Clearing House • Customizableenergysupply: mono vendor vs multiple supplier • Prepaid • Processcontrol: • Recharge remote control • Remote monitoringofrecharging station; availabilitycheck Home Public Allsolutionsequippedwithsmart-metering, readyforintegrationinto the upcomingsmartgrid.

27. WFM Work Force Management • Teamsequippedwith PC + AndroidSmartphone • connected via GPRS with GPS localization • GIS and Fault Management Systems • Listof Jobs tobeperformed and remote automaticassignmentof Jobs • e-mail and intranet • Checkof security adds-on • Camera and BarcodeReader • Augmented reality High Efficiency in Work Force Management

28. AssetMngmt Asset ManagementRiskbased network planning and assetallocation • Satellite mappingof network assets • Database of network events • poweroutagenotification, • fault detection • available and foreachgridelement • Load flow analysis • Investmentsbased on a riskanalysisforvarious network configurations • Advanced DSS SW platform • Predictivemaintenance • Processreengineering Optimizationof network planning/ investmentallocation and maintenancebased on risk-return

29. Agenda • Italian market context and Smart Meter Regulation • The roadmap to smart networks and operational excellence • Envisaging the future Infrastructure

30. Envisaging the future infrastructure Impact ofDistributed Generation - Energy Flow at TSO-DSO boundary * 2010 2012 MW 40.000 30.000 20.000 10.000 0 Weekdays Saturday Sunday * Avg. LoadCurves (July 2012 Vs 2010)

31. Envisaging the future infrastructureToward Smart Infrastructures • Electricity • Greater role in RES Dispatching • Distributed Intelligence • Sensors and actuators Network • Adaptive Control • Artificial Intelligence • Transportation • ElectircMobility • Electronic Control • Grid-to-Vehicle and Vehicle-to-Grid • Unmanned guide vehicle • Gas • Distributed Intelligence • Smart Meter • Energy Balance • Sensors and actuators Network • ConvergencetowardElectricModel • Communication • Broadband • Always-on • Wireless • Augmented Reality • Virtual Reality Smart Grids Increasingly an enabling factor/ DSO more and more a key role in energy sector

32. Envisaging the future infrastructureThe New Roleof DSO • Renewables • Smart Cities • Smart Customers • Energy Efficiency • ElectricMobility – fast charge • Smart Lighting • Building toGrid • ActiveDemand • New services • Smart Meteringalso • for gas • Consumptionoptimization • Dispatching • Energy Storagesolutions • RenewablesForecast • Broadband forgrid management

33. MV Energy Storage system of the “Isernia” project • Oneof the fewStorage in Europe and the first installed in Italy • The scope of the installationis the studyofsmartgridapplications in secondarysubstations MV Energy storageSystems Pmax= 1MVA - Energy: 500kWh

34. ActiveControlforDistributed Energy Resourcesconnectedto the MV network • Advancedcontrol system • “always on” and standard-basedcommunicationsolutionconnectingall the relevantnodes in the network, including DER locations. • VoltageControl (at allnodes) and Power Flow Control in the MV network. • New proceduresformanagingefficiently and reliably the Disconnectionof DER units in the eventofunwantedislandingoperations.

35. Envisaging the future infrastructure Enel Smart Grids Vision: Building a smart Energy future Multi-directional ‘flows’ management Network automation DemandResponse Smart Metering/ central and distributed Intelligence Electricmobility Storage and Plug & Playtechnologies LED Public Lighting Smart Cities Renewablessourcesintegration Smart equipments and powerelectronics Allowing Smart Interactionsbetweenallconnectedpartiestodeliversustainable, economic and secureelectricitysupply

36. Executive Summary • Enel missionistoefficientlydeliver a sustainable, economical and secureelectricitysupply in a liberalized market • Deploymentof Smart Metersgives a competitive advantage in business processes and Smart Grids, where Enel is the technology leader • Smart Metersdeploymenttriggers the start of a Utility operationsturnaroundbringingadvantagestoallparties • Enel headsinternationalstandardization and interoperabilitybodiesfor Smart Grids, and hasleadingedgetechnologies in thesefields • Enel wishestosupportother utilities toimprovetheirperformances and tosustaintheirroadmaptoexcellence in technologies Keepingour leadership onestepahead

37. Thank youAntonello BuondonnoHead of Europe and Americas Business DevelopmentEnel Infrastructure and Network Divisionantonello.buondonno@enel.com