Adapting to change 17/08/2017 National Conference of State Legislatures Energy Policy Summit Jack Thirolf, Sr. Director of Regulatory Affairs Enel Green Power North America, Inc.
Quick take 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 2
Focus for this morning Will talk about four things 1 Who/what is Enel? Large, innovative utility embracing and trying to lead the transitions we re talking about today. 2 Grid operators and utilities in many states have been utilizing demand response, energy storage, and other advances to adapt to a rapidly changing mix without sacrificing reliability. Yes! I will share with you a few examples of Enel s work and thinking. 3 Can changes in baseload energy resources be effectively managed with new technologies and management practices? Yes, but we have to be smart and it will increasingly require changes in system and market design. 4 How will markets incorporate and value these new approaches? Probably reactively and through a diverse set of models. We have to value flexible resources on the generation and demand side. 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 3
Who we are 17/08/2017 Business Development: South Africa (For Internal Use) 4
Enel Group worldwide Enel today: global and diversified operator1 1.As of 2016 Consolidated (35.9 GW) and managed (1.9 GW) capacity including 24.9 GW or large hydro 3.Presence with operating assets Thursday, 17 August 2017 Influence, Relevance, Growth Italy's opportunity and new paradigm" 5
Enel Group Business Strategy Enel operational targets by business lines 1.Includes only power and free gas customers 2.Free market + PPAs 3.Includes nuclear in Iberia 6
Enel Group Business Strategy Driven by change in strategy implemented three years ago 1.Excludes large hydro 2.Includes 3 million clients from Celg acquisitions. 7
Enel Green Power North America Leading Operator of Renewable Energy Over 3,300 MW operating capacity 23 U.S. States, 2 Canadian Provinces Over 100 power plants in operation 4 renewable energy technologies Over 500 Employees Quadrupled its installed capacity in last 5 years Added more than 600 MW in 2016 Started construction of additional 600 MW in 2017 Data as of August 2016 8
EGPNA milestones of growth Quadrupled operating capacity in the last five years 261 MW Enel makes its first international acquisition in North America of 261 MW hydropower from CHI Energy, Inc. 570 MW Enel Green Power is born and it expanded its portfolio to include wind, biomass and geothermal energy 800 MW EGP expands in Canada and grows its portfolio and geographical diversification 2,000 MW The company grows significantly its wind portfolio, enters new state and cerates the first of its kind hybrid power plants 3,000 MW Growth continues with +1,100 MW in construction in 2016, an increased solar portfolio, the largest wind project worldwide and new C&I customers 3,300 MW Growth continues with 600 MW of new construction, and the acquisition of Demand Energy Networks 2000 2008 2010 2014 2016 1H 2017
Examples, technology 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 10
The world is changing so should we More renewables, greater need for intelligence and flexibility 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 11
Technology facilitating integration Digitalization in Italy 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 12
Technology facilitating integration Additional steps toward 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 13
Technology facilitating integration Fully connected and flexible system 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 14
Behind the meter storage Co-exists with other software platforms Cloud-based Leverages open source technologies to drive lowest lifecycle costs Proprietary real time analytics Deep knowledge base Simulation and modeling tools for optimal site specific configurations and highly predicable financial returns Complex fleet management and intelligent aggregation Sophisticated UI that integrates with any system or device needed to manage, monitor, or maintain complex DER solutions Maximum financial returns from any combination of DER assets across any market and timeframe 15
Futur-e Project MAIN FIGURES 23 Power Plants involved 4 Power Plant sites already requalified 1 Power Plant site reconverted through Real Estate Process 13GW Total power to be decommissioned 5 Sites under reconversion through a Calls for Projects procedure 1 Ongoing Real Estate procedure March, 2 nd 2017 Futur-e 16
Futur-e Project A SUSTAINABLE PROCESS ENVIRONMENTAL SUSTAINABILITY SOCIAL SUSTAINABILITY Protecting the environment and local lands and communities Reusing materials and revitalizing site features Reducing CO 2 emissions ECONOMICAL SUSTAINABILITY Creation of economic development through site reconversion, promoting the potentiality of local lands and communities Business development opportunities Promotion of local natural, cultural and artistic excellences and assets SUSTAINABLE DEVELOPMENT Futur-e Creating shared value for our business and for local communities Redeployment of ENEL employees within other company divisions Retraining through ad hoc programs Promoting local employment as well as new development opportunities for local communities March, 2 nd 2017 Futur-e 17
Policy and markets 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 18
Energy as a service Top ten most active states of Q1 2017 Source: North Carolina Clean Energy Technology Center, The 50 States of Grid Modernization: Q1 2017 Quarterly Report, May 2017 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 19
Energy as a service Most common types of actions taken in Q1 2017 Source: North Carolina Clean Energy Technology Center, The 50 States of Grid Modernization: Q1 2017 Quarterly Report, May 2017 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 20
Challenges and choices for policymakers What policy chances sync with the customer demand and technologies? Value flexibility of supply and flexibility of demand at the wholesale and retail levels. - Wholesale: debate between pure energy vs. capacity + energy markets vs. separate markets for variable power and dispatchable power. - Retail: give customers choices for greater participation and control. Invest in the physical grid at the transmission and distribution levels, including increased bandwidth. - Enable the creation, aggregation, storage, analysis, sharing and protection of data to facilitate the flexible system. - Expand and integrate physical markets to decrease overall variability. 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 21
Thank you! Jack Thirolf, Sr. Dir. of Regulatory Affairs Enel Green Power North America, Inc. jack.thirolf@enel.com 17/08/2017 Adapting to change Jack Thirolf, Enel Green Power North America, Inc. 22