Annual Report 2010 - Enel.com

gradually increasing use, as from 2013, of an auction
system for the allocation of emissions allowances to
plants, with the Member States to be required to direct
part of the funds raised to finance measures for emissions
reduction and climate change adaptation;
> a limited expansion of the sectors and gases governed
by the system.
In 2010, major measures were adopted to implement Directive
2009/29/EC, including:
> on February 18, 2010, the new regulation for the allowance
registries was approved. Among other things,
the regulation provides for the establishment of a European
ETS Registry in place of the existing system of national
registries. The regulation also contains measures
to enhance the security system with a view to preventing
tax fraud and other fraudulent activities;
> on October 22, 2010, European Commission set the total
number of EU emission allowances (EUAs) for 2013,
taking account of new gases and new sectors to be covered
by the ETS. The cap will total 2,039 million metric
tons of CO ; 2
> on November 6, 2010, the decision on the financing
of renewable energy and CSS projects through the
sale of 300 million emissions allowances of the New
Entrant Reserve for the period after 2012 (the NER-
300 fund) was published. At the same time, the first
call for proposals was also published. The projects
selected will receive funding from the liquidation
of an initial tranche of 200 million metric tons of allowances.
The proposals must be transmitted to the
Member States (who are in charge of pre-selection
of projects) within three months of the publication
of the call for proposals, while the final decision is
expected to come in 2012;
> on November 12, 2010, the rules governing the operation
of the auctions for allocating emissions allowances
were approved. In implementation of the rules,
the procedure for selecting the centralized platform to
manage the auctions on behalf of the Member States is
scheduled to be defined in early 2011.
Long-term electricity import
contracts
Enel has a contract for the import of electricity with Atel
(on the Swiss border) expiring on December 31, 2011. The
power imported under the contract with Atel is sold to the
Acquirente Unico (hereinafter Single Buyer) at a set price
and is used to supply the enhanced protection market.
On December 18, 2009, the decree of the Minister for
Economic Development governing the import procedures
for the long-term contract for 2010 was published. The
decree confirmed the capacity reserve necessary for the
performance of the contract and set the price for the 1st
Quarter of 2010 at €59.5/MWh (€78/MWh for the 1st
Quarter of 2009). For the remainder of the year, the price
was updated based on the indexing of the Single National
Price (SNP); on this basis the price for the 2nd and 3rd
Quarters of 2010 amounted to €66.49/MWh and €63.66/
MWh, while that for the 4th Quarter was €73.02/MWh.
On December 14, 2010, the decree of the Minister for
Economic Development governing the import procedures
for the long-term contract for 2011 was published. The
decree set the price for the 1st Quarter of 2011 at €66.3/
MWh, confirmed the mechanism for updating the price
for the subsequent quarters and, in line with the previous
decree, gave the Single Buyer the right to not draw the
electricity under the long-term contract if prices are not
consistent with its forecast for average provisioning costs.
The Single Buyer confirmed its intention to draw the electricity
governed by the contract for 2011.
Green certificates
On February 9, 2010, the Energy Services Operator (ESO)
notified operators of the reference price for green certificates
for 2010: €112.82/MWh, equal to the difference between
the initial reference price (set at €180/MWh in the
2008 Finance Act) and the annual average sales price for
electricity in 2009, defined by the Authority for Electricity
and Gas in Resolution ARG/elt no. 10/09.
In addition, the ESO also announced the guaranteed withdrawal
price for green certificates issued for generation in
2007, 2008 and 2009 (with the exception of those regarding
co-generation plants connected with district heating)
at €88.91/MWh. This corresponds to the weighted average
price in green certificates trading on the market run
by the Energy Markets Operator in 2007-2009.
Article 2, paragraph 3, of Law 72/2010 repeals the transfer
of the obligation of delivering a share of renewable energy
to the national electricity system from the producers
or importers of electricity from non-renewable resources
to those who enter into one or more ancillary services contracts
for withdrawal with Terna. The transfer had been
established with Law 99/2009 (the “Development Act”).
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