2011 Annual Report - Italcementi Group

70% by Fotowatio Italy, a subsidiary of the Spanish group Fotowatio Renewable
Ventures S.A.. From July-December 2011, the plant, which involved a total investment of
20 million euro and is run jointly by the two partners, generated 4,600 MWh of electrical
energy, 30% above the forecast volume, thanks in part to very favorable meteorological
conditions. The Italian Electric System Authority is currently assessing the project’s
eligibility for government incentives.
Morocco: Laayoune – Wind farm (5 MW)
Consistently with the business model drawn up by Italgen and Ciments du Maroc, in 2011
the Laayoune wind farm was completed. In the period July-December, it generated a total
of approximately 7.5 GWh, in line with the volume projected in the feasibility study.
Morocco: Ait Baha – Solar concentrator project (0.1 MW)
At the beginning of 2011 preliminary studies began to assess installation of a solar
concentrator plant next to the Ait Baha cement plant and a technical partner was identified
with an innovative technology based on parabolic reflectors. The pilot plant will comprise 3
solar modules with a total surface of approximately 6,000 m 2 . Planned peak power is 150
kW and projected annual production is approximately 1 million kWh, for a total investment
of 2.7 million euro.
Egypt: Gulf El Zeit – Wind farm (120 MW)
Despite some delays due to the political difficulties in Egypt, the authorization process for
the project continued, the preliminary farm project was completed for the preparation of the
documents and the tender specifications for the supply of the plant, and negotiations
continued with the Egyptian authorities on the drafting of the usufruct agreement, which we
hope will be signed in the next few months.
Bulgaria: Kavarna I and Kavarna II – Wind farms (18 MW)
During 2011 commercial operations began for the Kavarna II wind farm. The reliability test
was completed successfully and in the first two months of activity the farm exceeded the
contractually planned volume. Operations at the two farms were hampered, however, by
unplanned interruptions caused by the inability of the local grid to cope with power
generation peaks and low wind levels during the year. Total production was 32.5 GWh,
20% below projected production.
In 2011, Italgen S.p.A. reported revenue of 57.4 million euro, an increase of 22.4% from
2010, thanks to higher volumes of transported power and the rise in the transportation
charge. Recurring EBITDA was 17.7 million euro, 10.5% above 2010; profit for the year
was 19.7 million euro, a sharp increase from 2010 (7.3 million euro), thanks to the gain
from the above-mentioned sale of Italgen Elektric Uretim. Italgen closed 2011 by
successfully meeting its “Zero accidents” target.
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