Enel
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Introduction
Enel is Italy’s largest power company, and Europe’s third-largest listed utility. Enel produces and sells electricity mostly in Europe, North and Latin America. It has 53,000 Megawatts of generating capacity and 32 million electricity customers. Enel is also the second-largest Italian distributor and vendor of natural gas, with over 2.3 million customers and a 12% market share. The company has about 52,000 employees and operates 46 thermal plants, 500 hydro facilities, 32 geothermal plants, 17 wind farms and 4 photovoltaic plants, in addition to more than a million kilometres of power lines, in Italy and internationally. [1] (http://www.nuclearspin.org/index.php/Enel#endnote_enel)
Enel was the first utility in the world to replace its customers’ traditional electromechanical meters with modern electronic devices that make it possible to take meter readings in real time and manage contractual relationships remotely. This innovation has enabled Enel to implement time-of-use electricity charges, which offer customer savings for evening and weekend electricity use, an initiative that has attracted interest from many utilities around the world.
International operations
Enel owns 19,000 MW of renewable energy resources (hydro, geothermal, wind, solar and biomass) across the world, and launched a five year plan for further renewable development in December 2006. Enel runs operations in Spain in the generation, distribution and sale of electricity with Enel Viesgo, which has about 2,200 MW in installed capacity, and with Enel Union Fenosa Renovables, a company active in the wind and hydro power sector. Enel is attempting to make a joint bid for the Spanish utility Endesa along with Spanish construction company Acciona. In renewables, Enel is one of the largest independent operators in the Americas with Enel North America and Enel Latin America, two companies that have about 900 MW of installed capacity.
Enel also has investments in France, Bulgaria, Slovakia, Romania and Russia.
A nuclear utility
Despite a plebiscite held in Itlaly in 1987 which decided to close down all of Italy's nuclear reactors, twenty years later, this Italian utility, which is more than 30% owned by the Italian Government, [2] (http://www.nuclearspin.org/index.php/Enel#endnote_enel2) has significant interests in nuclear power including a plan to build the most risky nuclear project in Europe. It also has a Memorandum of Understanding with EDF Group to acquire 12.5% of the new European Pressurised Reactor (EPR) about to start construction at Flamanville.
In February 2005, Enel acquired 66% of Slovak utility, Slovenske Elektrarne (SE), the largest electricity generator in Slovakia, and the second-largest in Central and Eastern Europe, with a generation capacity of 7000 MW, a mix of nuclear, thermal and hydro assets. After completing the deal in April 2006 Enel began to consider finishing the construction of two nuclear reactors - Mochovce 3 & 4. There was no doubt a very strong political, pro-nuclear pressure exerted by the current Slovak government of Robert Fico.
Enel originally said it would take a final decision on the project only after completing a complex feasibility study in April 2007. Official and formal approval at corporate level was expected during May 2007. However, in a joint statement with the Slovakian Government in February 2007, Enel appeared to agree to the completion of the two reactors. [3] (http://www.nuclearspin.org/index.php/Enel#endnote_pwr)
Mochovce
The Mochovce nuclear project, consists of two reactors of a very old Soviet design - the VVER-440/213. These are pressurized water reactors, with an installed capacity of 440 MWe each. Four units were under construction near Greifswald in East Germany, but construction was cancelled in 1990 after the German re-unification because the reactors did not meet basic German safety standards. The construction of the Mochovce 3 & 4 reactors began back in 1987. In 1992, soon after the collapse of the communist regime, building was suspended. Construction is still at a relatively early stage. Most of the concrete structures are finished (such as cooling towers, turbine and reactor halls), but a majority of machinery and equipment - the most expensive parts in the total investment – is still missing. Several Slovak governments have tried unsuccessfully to complete the project, but economic studies in 2000 showed that the project is economically not feasible.
Safety problems
Due to the advanced stage of construction, there are only limited opportunities to incorporate safety improvements. Most notably, the plant has no containment – a barrier against radiation escape in case of accident, and protection for the reactor from outside events such as an aircraft crash. Today’s modern reactor designs have a double containment structure, but Mochovce 3 and 4 would have none. Since the reactors were originally approved under the old communist regime, there has been no opportunity for citizens to participate in a democratic decision-making process. It is unlikely that Enel could make a profit from completing these reactors without some form of state subsidy, which, at least in theory, should be illegal under European Competition law.
State funding
The special segregated fund intended to cover decommissioning costs and radioactive waste management in Slovakia already has a deficit of around 450 million Euros. Because future payments to the fund have been capped calculations suggest that Enel will save between 26.4 and 60.9 million Euros every year - but this will have to be paid by someone. A new law allows the past decommissioning fund deficit to be collected from consumers by means of a levy on bills. Friends of the Earth Europe asked the European Competition Commissioner to investigate this alleging that the plan to levy all electricity consumers in order to fund future nuclear decommissioning would be unlawful under EC law and so should not proceed. [4] (http://www.nuclearspin.org/index.php/Enel#endnote_foe)
In addition the Slovak Government, which remains a minority owner of a 34 % share of Slovenske Elektrarne, has agreed that it will not take any dividends from net profits for the period 2006 - 2012. The Slovak Prime Minister has even said that this is the Government's contribution to the Mochovce 3 & 4 project.
Slovenske Elektrarne
Before privatisation, Slovenske Elektrarne operated six nuclear reactors (2,640 MWe), a series of hydro (2,399 MWe) and coal power (1,838 MWe) plants with a total installed capacity of 6,877 MWe. In 2004, it produced 25.6 TWh of electricity, which covered 84 % of domestic production. It exported 5.9 TWh of electricity. It also owned a closed gas-cooled heavy water reactor - Bohunice A1. This reactor which was damaged and closed for good after a serious melt-down accident in 1977, along with the Bohunice V-1, twin VVER-440/230 reactors that according to the EU Accession Treaty would have to be closed in 2006 and 2008 respectively were kept in state ownership. This left Slovenske Elektrarne with four operating reactors, all VVER 440/213 reactors: Bohunice V2-1 and V2-3 and Mochovce 1 and 2. [5] (http://www.nuclearspin.org/index.php/Enel#endnote_se)
Future plans
Enel CEO Fulvio Conti announced on February 23rd the company’s planned investments in Slovakia totalling 3.2 billion Euro. Of this 56% will go towards building two new 440 MW reactors in Mochovce and 2.5% will be spent on uprating existing reactors at Bohunice and Mochovce. [6] (http://www.nuclearspin.org/index.php/Enel#endnote_enel3)
Eon and the Slovak Government are also reported to be negotiating the construction of a new reactor at Bohunice.
Enel and Eon battle for control of Endesa
Eon first made a bid for the Spanish utility, Endesa, in 2006. Eventually in April 2007 it pulled out and struck a deal with rival bidders: Enel in partnership with Spanish construction company Acciona. By then Enel and Acciona had almost half of Endesa’s equity under their control.
Assuming Enel and Acciona proceed with their takeover offer and gain control of Endesa, Eon will receive assets in Spain, France, Italy and Turkey, including Viesgo, Spain's fourth-largest utility currently owned by Enel, as well as Endesa's assets in France and Italy. [7] (http://www.nuclearspin.org/index.php/Enel#endnote_ft)
Endesa has shares in the following nuclear reactors:-
36% of two PWR reactors - Almaraz I and II (977MW and 980MW); 100% of the PWR Asco 1 (1032MW) 85% of the PWR Asco 2 (1027MW) 78% of the PWR Vandellos II (1087MW), currently being decommissioned. [8] (http://www.nuclearspin.org/index.php/Enel#endnote_span)
Endesa has 22 million customers around the globe from Poland to Chile. [9] (http://www.nuclearspin.org/index.php/Enel#endnote_iht)
Foratom
Enel itself is not a member of the European Atomic Forum (Foratom), but Slovenske Elektrarne and Endesa are both members. [10] (http://www.nuclearspin.org/index.php/Enel#endnote_for)
Resources
References
- ^ Enel website (http://www.enel.it/azienda_en/chi_siamo/).
- ^ The Italian Economy Ministry holds 21.4% of the company directly and another 10.2% indirectly through state-run lender Cassa Depositi e Prestiti.
- ^ Enel to complete Slovakian nuclear plant (http://pepei.pennnet.com/display_article/285650/6/ARTCL/none/none/Enel-to-complete-Slovakian-nuclear-plant/), Power Engineering International, February 26, 2007.
- ^ Nuclear State Aid: New complaint filed against Slovakia. Friends of the Earth Europe Press Release (http://www.foeeurope.org/press/2005/MJ_3_Feb_nuclear_state.htm), February 2, 2005.
- ^Slovenske Elektrarne website (http://www.seas.sk/en/)
- ^ Enel CEO met with Slovak Minister of the Economy to discuss Company’s future plans, Enel Press Release (http://www.enel.it/azienda_en/sala_stampa/comunicati/ss_comunicatiarticolo.asp?IdDoc=1498357), February 27, 2007
- ^ Endesa battle ends with Eon dropping bid (http://us.ft.com/ftgateway/superpage.ft?news_id=fto040220071353250739), Financial Times, April 2, 2007.
- ^ Spanish Nuclear Industry Forum website (http://www.foronuclear.org/en/energia_nuclear_espana.jsp).
- ^ Enel and Acciona move toward Endesa takeover (http://www.iht.com/articles/2007/04/11/business/bxendesa.php), International Herald Tribune, April 12, 2007
- ^ Foratom Members list (http://www.foratom.org/index.php?option=com_content&task=view&id=13&Itemid=50)