Gianfilippo ManciniExecutive Vice PresidentGeneration & Energy Management and Market DivisionsPowerGen 2011

1. A new era for the EU power marketGianfilippo ManciniExecutive Vice PresidentGeneration & Energy Management and Market DivisionsPowerGen 2011June, 7 2011

2. A global uncertain context Energy saving and grid improvement Commodities Environmental sustainability Security of supply

3. Security ofsupply EU 27 Primary Energy Balance Italy Primary Energy Balance Power Generation Mix Oil/Other Gas Coal Nuke Renewable Source: Source: Eurostat - Yearly statistics 2008 , Terna 2009, Enerdata

4. Renewable energies Development of capacity (GW) UK 38 EU 27 +322% 9 483 +94% Germany +106% 111 249 France 54 +97% 57 29 +57% Italy Spain Large investments in renewables supported by EU governments’ incentivation policies 76 44 +73% 28 44 Source: National Action Plans of EU members – 2010 Edition; 2010 based on PAN statements

5. An ageing power fleet… Generation capacity by efficiency Thermal generation capacity by age EU 27 Italy % ofcapacity Ageing thermal power fleet will require renovation in the next few decades Source: Platts, Enerdata – Global Energy & CO2 Data, 2009

6. ..in need of environmental fitting European limits for air emissions Enel power plants performance in Italy European countries must comply with new regulation, Italian IPPC permits (AIA) are already compliant with the new IED limits Limits set by 2010/75/UE (IED) directive equivalent to the higher end of the Brefrange

7. Energy Efficiency: an opportunity 2009 Energy intensity (1 = EU27 average) CO2 abatement measures EU 27 Cost(EUR/tCO2e) Potential (MtCO2e) Power generation Buildings Transport All countries and sectors can contribute Sources: Enerdata 2009, Mc Kinsey