Annual Report 2010 - Enel.com

“Plant and machinery” includes assets to be relinquished
with a net carrying amount of €11,148 million (€10,212
million at December 31, 2009), €7,925 million of which
related to power generation plants (€7,097 million at December
31, 2009) and €2,615 million to Endesa’s electricity
distribution network (€2,558 million at December 31,
2009).
The change for the period is attributable to the sale of
certain high-voltage electricity distribution assets to Red
Eléctrica de España (REE) under the transitional provisions
of Spanish Law 17/07. That effect was more than offset
by exchange rate differences and capital expenditure for
the year.
“Leased assets” include certain assets which the Group is
using in Spain, France, Greece, Latin America and Slovakia.
More specifically, in Spain the assets regard a 25-year
tolling contract under which Endesa has access to the
generation capacity of a combined cycle plant for which
Elecgas has undertaken to transform gas into electricity
in exchange for a “toll” at a rate of 9.62%. In France and
Greece, they regard wind plants under 15/20-year leases.
In Latin America, the assets regard leased power transmission
lines and plant (Ralco-Charrúa), under a 20-year lease
at a 6.5% rate, as well as a number of combined cycle
plants (8-year lease bearing a floating rate).
The leased assets in Slovakia essentially regard the sale
and lease back agreements for the V1 nuclear power plant
at Jaslovske Bohunice and the hydroelectric plant at Gabcikovo.
The leasing arrangements were a necessary condition
for the start of the privatization of the Slovakian electricity
system. The lease for the V1 plant covers the entire
remaining useful life of the asset and the period between
the end of generation and the start of the decommissioning
process, while the lease for the Gabcikovo plant has a
30-year term as from April 2006.
The following table reports the minimum lease payments
and the related present value.
Millions of euro
Minimum lease
payments Present value
2010
at Dec. 31, 2009
31 22
2011-2014 120 93
After 2014 243 159
Total 394 274
Millions of euro
Minimum lease
payments Present value
2011
at Dec. 31, 2010
70 31
2012-2015 254 102
After 2015 813 432
Total 1,137 565
The table below summarizes capital expenditure in 2010
by category. These expenditures, totaling €6,375 million,
rose by €148 million compared with 2009.
Millions of euro
2010 2009
Power plants:
- thermal 1,818 2,005
- hydroelectric 391 341
- geothermal 148 151
- nuclear 661 379
- alternative energy resources 745 640
Total power plants 3,763 3,516
Electricity distribution network 2,520 2,237
Gas distribution network
Land, buildings and other assets
- 82
and equipment 92 392
TOTAL 6,375 6,227
Capital expenditure on power plants totaled €3,763 million,
an increase of €247 million on the previous year. This
mainly reflects increased investment in nuclear power
plants by the International Division.
Capital expenditure for the electricity distribution network
totaled €2,520 million, an increase of €283 million
year on year.
Investment in the gas distribution network fell by €82
million following the sale of the distribution network in
Spain.
The “change in scope of consolidation” for 2010 mainly
concerned acquisitions involving the Renewable Energy
Division.
The “reclassification from/to ‘Assets held for sale’” in 2010
essentially includes:
> the assets in respect of the Spanish power transmission
grid (€961 million), subsequently sold in December
2010;
> the Enel Maritza East 3 plant (€567 million);
> the natural gas transport assets in Spain (€341 million),
195