Enel X

Electric Mobility

Alberto Piglia: Copenhagen 22 March 2018

New customer needs lead to

customized services

development with sustainable

approaches

New customer needs

By 2040, electricity will be the

first source of energy

consumption: share of 38%

Digital electricity infrastructure

investments: +45% between

2014 and 2016

The evolution of the energy sectorDecarbonization

Renewables penetration by

2040: 60%

Decarbonization DigitalizationElectrification

The energy sector is experimenting a deep transformation

Digitalization and customer centricity will change the paradigm

Source: United Nations 2014; BNEF 2018, WEO 2017, IEA

3

Result: Growth scenario

Electric Vehicles Market

Source: Bloomberg, Long - Term Electric Vehicle Outlook, 2017

- Infrastructure gap

- Customers TCOs

- Car Offerings

must be addressed in order to develop the market

70

60

50

40

30

20

10

2015 2020 2025 2030 2035 2040

Rest of Europe France UK Germany

Japan Rest of World China US

Million cars per year

• 54% new sales will be electric by 2040

• US will be a major market in the next

decade

• In EU, UK, Germany and France will lead

the market

0

200

400

600

800

1.000

1.200

2010 2015 2020 2025 2030

2025 implied

price $96/kWh

2030 implied

price $70/kWh

2017 implied

price $209/kWh

4

Driver: Falling battery prices

Electric Vehicles Market

Note: Prices are an average of BEV and PHEV batteries and include both cell and pack costs. Cell costs

alone will be lower. Historical prices are nominal, future ones are in real U.S. dollars.

Li-Ion Battery Prices drop as the technology driver of

EVs mass market

Falling battery prices are expected to undercut

gasoline cars by mid-2020s

Source: Bloomberg New Energy Finance Source: Bloomberg New Energy Finance

Observed

price

18% learning

rate

0 50 100 150 200 250 300 350

Small vans

Runabouts

Hatchbacks

Sedans

Sports cars

SUVs/Trucks

BEV model

availability

2008-20

Venturi Fetish Tesla Roadster

20082009

Mitsubishi i-MiEV

BMW mini e

Smith Edison

2010Ford Transit

M-B E-CellHyundai

BlueOn

Nissan Leaf

Kia Ray

2011

Ford Focus

Renault KangooM-B Vito

BYD e6

Renault Fluence

2012Renault Twizy

Smart

ForTwo

Fiat 500e

Renault Zoe ZE

Tesla Model S

Toyota

RAV4

Honda Fit

CODA EV

2013

Peugeot Partner

Exagon Furtive

M-B SLS eDrive

BMW i3

Chevy Spark

Mahindra e2o

VW

e-Up

2014

VW e-Golf

Nissan NV200

M-B B-Class

JAC iEV4

2015Kandi Panda

Bollore

Bluesummer

Mullen 700e

ChangAn

Eado

2016

Chevy Bolt

Audi R8 E-tron

BYD T3

Mahindra eVerito

2017

Qianto Q50

Aston Martin

RapidE

Tesla Model 3

Hyundai Ioniq

2018

Land Rover

Defender

Honda Clarity

2019

Porsche E-sport

M-B EQ

Jaguar

I-Pace

2020

Mitsubishi eX

Tesla Roadster

GLM G4

VW e-Bulli

BAIC EU260

Geely Emgrand

NIO ES9

Audi E-tron

Sportback

VW I.D.

VW I.D. CROZZ

NIO ES8*

Tesla Roadster*

ChangAn EM80

VW I.D. BUZZ

Renault DeZir

Trumpchi

GS4

SAIC E-Lavida

Tata

IRIS

VW I.D.*

Audi E-tron

Quattro

Tesla

Model Y*

BYD e5

Volvo 40.2*

Tesla

pickup*

Nissan Leaf 2*

Lucid Air

+

Faraday

FF91

NIO EVE

LeEco LeSEE

Chehejia

SUV*

BMW i5

Seat Mii*

Tesla

Model XVW

Budd-e

6

Why it matters for Energy Industry

e-Mobility Revolution

Renewables Infrastructure & Networks Retail

e-Mobility can drive the whole Enel value chain

toward the new energy ecosystem

RES are irregular and intermittent

e-Mobility can contribute to stabilize the

system and provide flexibility

I&N are affected by power congestion

e-Mobility can avoid power congestion by

balancing the grid, sharing

infrastructures with many users connected

to multiple networks and decentralizing

control and management

Commodities price are decreasing,

Retail strategy is product oriented

e-Mobility can drive the retail in the energy

transition, enabling the breaking of the

boundaries among sectors thanks to new

ancillary services to the grid such as supplying

energy if needed in change of remuneration.

Enel Group todayEvolution and achievements since 20141

1. 2014-2017 delivery. As of 2017E

2. Consolidated capacity equal to 37 GW (including 25 GW of large hydro)

3. Including replacement of smart meters 2.0 in Italy equal to 1.4 mn. Enel global market share equal to 24% (BNEF 3Q17 Energy Smart technologies market Outlook)

4. Presence with operating assets

#1 private network operator globally

65 mn end users and 44 mn digital meters

20 mn free retail customers

#1 in Italy, Iberia and top 3 in Latam

#1 renewable operator

~40GW managed capacity2

47 GW thermal capacity

Highly flexible and efficient assets

Countries of presence4

+4.5 mn end users

+8.4 mn smart meters3

+6 GW

+80%

additional capacity

10 GW

capacity closure

+5 mn free customers

+20% electricity sold in

free market

7

Enel X

+5.7 GW demand response

Our portfolio of solutions in the 4 Global Product Lines

Enel X

Home 2 Grid

Installation, maintenance

and repair services

Automated home

management

Financial services

Consulting and auditing

service

Energy efficiency

Distributed generation

on/off site

Demand response and

demand side management

Fiber optic wholesale

network

Smart lighting

e-City

Demand response and

demand side management

Distributed generation &

energy services

Addressing new customer needs with innovative technologies 8

e-Industries e-Home

Charging infrastructure

(public & private)

Maintenance and other

services

Vehicle Grid Integration

e-Mobility

OEM back-end integration

Flexibility

9

Overview of the possible business models that utilities can execute

Shaping the right business model…

Source: Arthur D. Little analysis

Each utility should evaluate the different options, possibly combine

some of them, and strategically decide on the future direction

Po

ten

tia

l

Complexity

Energy

provider

Load

balancerSell energy to EV

owners, and try to

maximize revenues by

fixed or flexible tarrifs

Provide charging

points, with different

levels of infrastructure

management

By perceiving Evs as a «fleet of

batteries» on wheels, control

their charging and de-charghing

to balance load or provide

ancillary services

Provide Mobility as a Service

through aggregation of customers

to let them partecipate to the

energy market

Mobility

provider

Infrastructure

provider

Interruption of a charging session

in progress or deferred startup of

the charging session; aggregation

of each single start and stop is

equivalent to the contribution of an

interruptible heavy energy

consumer.

Modulation of a charging session

in order to provide frequency

regulation services. It increases

the flexibility of the network and

helps mitigate overload risks or

increase the capacity of

renewables.

Return of power from car battery

to the network; it is used for

frequency regulation. Each car

contributes with the power that the

bidirectional charging station

makes available.

Return of energy from the car

battery to the electricity grid can

allow the supply of portions of

the network in emergency

conditions or participate in the

wholesale energy markets.

Demand Response

Ancillary services

through Vehicle 1 Grid

Ancillary services

through Vehicle 2 Grid

Energy 2 Grid

Product developments

Car manufacturers

10

…Based on a set of ancillary services

EVs

EVSE

Enel X e-Mobility ecosystem

EVSE back-end

Aggregation

Platform

JuiceBox

DC

EU / US

DCFC

JuiceBox

AC

Juice2GridJuicePole

AC

OEM back-endEnergy Front Office

& Markets Interaction

Customers

Open system, which ensures interoperability

11

Thank you