ENDESA ITALIA
The consortium owning the company is made up of ENDESA (80%) and the Italian, municipally owned, energy company of ASM Brescia (20%).
This structure has been completed last 1st of February of 2005 when ENDESA sold ASM Brescia, its partner in Endesa Italia, a 5.33% stake in Endesa Italia for Euro 159 million. The operation implied a total value for Endesa Italia of Euro 2,989 million, 36.4% higher than when ENDESA paid for its original stake in the Italian company in September 2001. The transaction brought a net capital gain of Euro 24 million.Previously, in June, ENDESA had completed the acquisition of another 34.3% of Endesa Italia fron Santander Central Hispano (BSCH), raising its ahreholding in the Italian coompany to 85.3%.
This purchase, exercising the call option included in the agreement reached between ENDESA and BSCH on 13 June 2001, entailed a cost for ENDESA of Euro 817 million, which it recorded as a liability in its balance sheet at 31 December 2003, so it did not lead to any increase in the Company´s consolidated debt.
Endesa Italia is the third largest generating concern in the Italian electricity sector, with 6,340 MW installed power, of which 5,326 MW corresponds to thermoelectric power stations and 1,014 MW to hydroelectric.
During 2004 production amounted to 20,875 GWh, an increase of 16.8% over 2003.Growth there was the result of the start-up of CCGT production (a further 5,659 GWh on the figure of 6,338 GWh produced in 2003 GWh) and the 68.9% jump in coal-fired output (to 5,642 GWh ) in line with ENDESA´s repowering strategy for Italy, which entails the substitution of fuel-oil by coal and gas. Hydro output in Italy grew 44.4% GWh to 2,402 GWh .
Endesa Italia is carrying out a program of repowering the units of four company thermal power stations, through the conversion of the same to combined cycles and, in one case, to coal, which will permit it to increase the efficiency and extent of its installed power and, in 2007, doubling the production reached in 2002.
Inside its environmental and sustainable development policy, Endesa Italia has bought a 20 MW wind farm in Sardinia, , which may be increased by a further 20 MW once the pertinent authorisation has been obtained, and has an estimated net output of 42,000 MWh/pa. Endesa Italia has also signed a framework agreement with GAMESA ENERGIA S.A and the italian company IDAS, by which it will acquire from these companies wind farms in Italy with a total installed capacity of 300 MW in a period of three years.
