Maximizing production efficiency for existing and new power infrastructure: Enel experience in Russia and technologies Enrico Viale Chief Executive Officer, Enel OGK-5 Moscow, 19 September 2011

2 Efficiency improvements in Russia: focus both on new construction and existing equipment ( MW) Major ways of efficiency improvements in Russia Expected construction of substantial number of CCGTs (efficiency ~ 50-58%) Still old gas and coal generation (efficiency ~ 30-40%) remain dominating with additional potential for improvement: o Modernization o Environmental improvements, especially for coal o Operational efficiency Source: EOGK-5 company outlook Gas/oil CCGT Coal Hydro Nuclear

Enel OGK-5 strategy for efficiency improvements 3 Gas – fired power plants Coal-fired power plants Reftinskaya GRES : Reftinskaya GRES (3,8 GW): Important base load plant Important base load plant Reliability issues Reliability issues Substantial environmental impact Substantial environmental impact Konakovskaya GRES : Konakovskaya GRES (2,5 GW): Relatively new plant Relatively new plant Half capacity utilized due to competitive market and gas supply limitations Half capacity utilized due to competitive market and gas supply limitations Sredneuralskaya GRES (1,2 + 0,4 GW CCGT): Oldest plant in the portfolio Oldest plant in the portfolio Worn-out equipment Worn-out equipment Good market position Good market position Nevinnomysskaya GRES (1,3 + 0,4GW CCGT): Relatively old plant Relatively old plant Good market position Good market position Enel OGK-5 focus on efficiency 1.Construction of new CCGTs (Sredneuralskaya and Nevinnomysskaya PPs) 2.Modernization (Reftinskaya PP) 3.Environmental investments (Reftinskaya PP) 4.Operational improvements (all PPs)

4 1. Construction of new CCGTs: Sredneuralskaya Power Plant New CCGT 410 MW: Efficiency ~ 57% NOx emissions: ≤ 50 mg/Nm3 Commisioning: Q Cost ~ 380 mln EUR New CCGT 410 MW: Efficiency ~ 57% NOx emissions: ≤ 50 mg/Nm3 Commisioning: Q Cost ~ 380 mln EUR Initial situation: Oldest plant in the portfolio – first unit commissioned in 1936 Location – Sverdlovsk region, solid demand and good market position Mandatory investment in CCGT supported by high capacity tariff from DPM scheme Initial situation: Oldest plant in the portfolio – first unit commissioned in 1936 Location – Sverdlovsk region, solid demand and good market position Mandatory investment in CCGT supported by high capacity tariff from DPM scheme

5 1. Construction of new CCGTs: Nevinnomysskaya Power Plant New CCGT 410 MW: Efficiency ~ 57% NOx emissions: ≤ 50 mg/Nm3 Commissioning: Q Cost ~ 400 mln EUR New CCGT 410 MW: Efficiency ~ 57% NOx emissions: ≤ 50 mg/Nm3 Commissioning: Q Cost ~ 400 mln EUR Initial situation: Relatively old plant– first unit commissioned in 1960 Location – Stavropol region, good market position Mandatory investment in CCGT supported by high capacity tariff from DPM scheme Initial situation: Relatively old plant– first unit commissioned in 1960 Location – Stavropol region, good market position Mandatory investment in CCGT supported by high capacity tariff from DPM scheme

2. Modernization: Reftinskaya Power Plant Reconstruction and modernization of 5 units of 300 MW: Investment rationale: o availability increase around 10% o Capacity increase by 8% (from 300 to 325 MW) o Specific heat consumption decrease of 15 g/kWh Implementation: years Cost ~ mln EUR Reconstruction and modernization of 5 units of 300 MW: Investment rationale: o availability increase around 10% o Capacity increase by 8% (from 300 to 325 MW) o Specific heat consumption decrease of 15 g/kWh Implementation: years Cost ~ mln EUR 6 Initial situation: Largest coal power plant in Russia Location - Sverdlovsk region, base load, high importance for Urals market, competitive fuel Substantial problems for availability and environment Initial situation: Largest coal power plant in Russia Location - Sverdlovsk region, base load, high importance for Urals market, competitive fuel Substantial problems for availability and environment RGRES unavailability, %

3. Environmental investments: Bag filters installation at Reftinskaya Power Plant Replacement of electrostatic precipitators with bag filters: First time in Russia NOx emissions reduction by 30% Ash emissions reduction of 98% Implementation: years Cost included in the cost of modernization Replacement of electrostatic precipitators with bag filters: First time in Russia NOx emissions reduction by 30% Ash emissions reduction of 98% Implementation: years Cost included in the cost of modernization 7

3. Environmental investments: Dry Ash Removal System at Reftinskaya Power Plant Construction of a Dry Ash Removal System First time in Russia Modern automated and environmentally friendly system for collection, transportation, storage and reutilization of ash Implementation: 2010 – 2012 Cost ~ 250 mln EUR Construction of a Dry Ash Removal System First time in Russia Modern automated and environmentally friendly system for collection, transportation, storage and reutilization of ash Implementation: 2010 – 2012 Cost ~ 250 mln EUR 8 Initial situation: Serious pollution problems with current wet ash removal system Substantial problems with ash storage as current ash lagoon capacity is almost exhausted Initial situation: Serious pollution problems with current wet ash removal system Substantial problems with ash storage as current ash lagoon capacity is almost exhausted

Use: Confidential 9 4. Constant improvement of operations contribute to overall efficiency improvements relevant for all PP Heat rate reduction Water consumption reduction Increasing of availability Achieved improvements (2010 vs. 2008) ~ 0,5% (1,4 gce/kWh)* ~ 10% (20 m3/MWh)* ~ 5%* Examples of measures implemented Ball cleaning system More precise O2 meters Energy saving lamps Water meters Replacement of heating surfaces SMED planning for planned outages Project office to track existing and scan for additional initiatives “Zenith” brand and quality program introduced for all efficiency improvements Improvement ideas coming also from sharing “best practice” with other Enel assets * best result among all power plants

10 Become the benchmark in terms of operating excellence in the power and gas industry Maximum performance Across all levers Leveraging all possible levers (Margin, Opex, Capex, Working Capital) Maximizing pre-tax cash flow generation Developing our people, skills and knowledge Creating a top performance culture Developing a group of people in charge to drive change Fostering experience sharing, through dissemination of knowledge and of management best practices across the group In all the Group In all geographies (Italia, Spain, Slovak Rep., Romania, Russia, …) In all the divisions and staff functions 4. Enel introduced a “Zenith” brand for operational improvements worldwide

11 Future projects: Smart Grids Central and distributed resources integration Smart equipments and power electronics Central and distributed Intelligence Electric Vehicles End user real time information and participation Multi-directional ‘flows’ management Storage and Plug & Play technologies LED Public Lighting Key technology effectively matching supply and demand Already tested and/or launched in Europe by Enel Russia – an important potential markets