Italgen - Italcementi Group Proprietary and Confidential Information 1
Bulgarian Economic Forum
Energy projects:the perspective of an international investor
Mr. Giuseppe De BeniManaging Director
Sofia, 26-27 November 2009
Italgen - Italcementi Group Proprietary and Confidential Information 2
With an annual production capacity of approximately 70 million tons of cement, Italcementi Group is the world’s fifth largest cement producer.
Italcementi Group’s companies combine the expertise, know how and cultures of 22 countries in 4 Continents boasting an industrial network of 63 cement plants, 15 grinding centres, 5 terminal.
In 2008 the Group had sales amounting to almost 6 billion Euro. (www.italcementigroup.com)
Overview of Italcementi Group
Italgen - Italcementi Group Proprietary and Confidential Information 3
Italcementi Group has been operating in the energy sector since 1907.
Italgen was established in 2001 as a spin-off of all the energy assets of the Italcementi Group.
In Italy operates 14 hydro plants, 1 thermal plant and owns 400 km of dedicated transmission lines.
Through its strategy, Italgen aims to help increasing Italcementi Group’s energy independence and reduce its overall carbon emissions balance.
Overview of Italgen
Italgen - Italcementi Group Proprietary and Confidential Information 4
Italy
EgyptMorocco
Turkey
New Revampings of hydro plants 56 MW
Bares Wind Farm
142.5 MW
Gulf El Zeit Wind Farm
120 MW (first step)
Laayoune Wind farm
5 MW (first step)
Bulgaria
Under evaluation
Italgen projects are boasting on global Group presence
Italgen - Italcementi Group Proprietary and Confidential Information 5
Turkey: Bares
Location Balikesir region, Western Turkey
Status
Expected Operation
Under Development
2011
Italgen Equity Interest 100%
Acquisition Date July 2008
Capacity and Generation
Installed Capacity Up to 142.5 MW
Net Capacity factor 37%
Revenue
Regulatory Regime Balancing system (since August 2006) Bilateral agreements Feed-in-tariff: 55 €/MWh (80 €/MWh with a new law expected into force shortly)
Network
Operator TEIAS
Bares
Italgen - Italcementi Group Proprietary and Confidential Information 6
Egypt: Gulf El Zeit
Location Gulf El Zeyt, Red Sea Coast
Status Under Development
Expected operation
Italgen Equity Interest2012
100%
Capacity and Generation
Installed Capacity Up to 120 MW (according to recommended evidences from EIA)
Net Capacity factor 50%-55%
Revenue
Regulatory Regime The responsibility for power sector administration has been given, since 2000, to the Egyptian Electricity Holding Co (EEHC), under the supervision of Ministry of Electricity and Energy (MEE). NREA (New Renewable Energy Agency), part of MEE is the referenced Authority
Network
Operator EEHC
Gulf El Zeyt
Italgen - Italcementi Group Proprietary and Confidential Information 7
Morocco: Laayoune
Location Laayoune, South Morocco
Status Under Development
Expected operation
Italgen Equity Interest
2011
100%
Capacity and Generation
Installed Capacity 5 MW (first step)
Net Capacity factor 34%
Expected Annual production 15,000 MWh
Revenue
Regulatory Regime New Law about auto-production of electricity from 10 to 50 MW (June 2008). Energypro project allows industrial to build wind farms for their own use. ONE buys any surplus at 60% of the wholesale price.
Network
Operator ONE (Officiel Nationale Electricité)
Laayoune
Italgen - Italcementi Group Proprietary and Confidential Information 8
Investments in RE are representing the answer to our:
Concern for global climate change (United Nations Framework Convention on Climate Change, Kyoto Protocol, EU Directive 20/20/20)
Need for security of energy supply
Reaction to volatility fossil fuel prices
Attention to technological evolution (continuous improvement of reliability and efficiency of key equipment)
Support received by local Government as FDI (Green Certificates, New Energy Laws adopted,, 2020 targets, etc)
Italgen - Italcementi Group Proprietary and Confidential Information 9
The perspective of an international investor: where to invest?
Several Countries (and in particular Countries in the Mediterranean rim) are competing to attract the most relevant players in the field of renewable energies.
Priorities in Energy Policy and Planning (from the perspective of an international investor) are therefore:
a sound institutional environment
a defined legal framework
adequate incentives
In Countries where:
energy demand is forecasted to grow at high rate
renewable energy sources are abundant and of high quality
local governments are adopting new regulatory frameworks to support renewable
energies development and attract FDI.
Italgen - Italcementi Group Proprietary and Confidential Information 10
Bulgaria could represent a new opportunity for Italgen due to:
Strong presence of Italcementi Group in the Country since 1998
Consolidated position as largest cement producer and exporter
Reliable potential for wind energy production
Legal and regulatory basis (Energy Act 2006, Renewable and Alternative Energy Sources and Biofuels Act 2008)
Efforts by the Bulgarian Government to attract reliable foreign investors should focus on:
Adoption of a renewed legal framework, with a clear view on the medium term
Improvement of the “technical network” (Grid connection and reliability)
Support on having all Renewable Energy initiatives as CDM projects.
