ELE Endesa SA Ads

ENDESA (NYSE:ELE): -- The Company estimates 19,535MW of total renewable capacity in 2009, 19% more than in 2004. -- ENDESA intends to develop 3,100 MW of clean energy capacity in Europe by 2009, of which 2,500 MW will be installed in Spain and Portugal and 600 MW in Italy and France. -- In Spain and Portugal, efforts to boost capacity to 9,289 MW -a 38% increase from 2004- primarily entail new wind farms. -- Roughly 30% of growth in planned capex over the next five years will be to develop new renewable energy capacity. ENDESA (NYSE:ELE) estimates that renewable energies will represent 38.5% of its total power generation mix by 2009. The Company expects to have 19,535 MW of installed renewable capacity by then, up from 16,421 MW in 2004, a total increase including large hydro plants of 19%. Of this, 15,389 MW will be powered by water, 3,903 MW by wind and 243 MW by biomass and waste. ENDESA has earmarked around Euro 2,100 million for its renewable energy development plan, nearly 30% of total planned investment in growth in 2005-2009. The Company's Strategic Plan entails the addition of new renewable capacity to achieve an appropriately diversified generation mix, which underlines ENDESA's commitment to the environment and sustainable development in the markets where it operates. ENDESA aims to continue reducing the level of gas emission per KWh produced in order to comply with the Kyoto Protocol. ENDESA's specific emissions in Spain are now 27.5% lower than in 1990. The company has achieved this reduction despite increasing output by 120% over the same period. The target is a 35% reduction in specific CO2 emissions by 2007 from 1990. By 2009, around 40% of ENDESA's production plants will not release any type of pollutant gas into the atmosphere. Geographical breakdown of the plan In Spain and Portugal, the Company's efforts to generate more power using renewable energies will be particularly important. The aim is to boost capacity to 9,289 MW -a 38% increase from 2004- primarily through new wind farms. Renewable energies are expected to account for 35.2% of ENDESA's generation assets in Spain and Portugal by 2009. The Company has earmarked roughly Euro 1,500 million for investment in renewable energies, mainly in wind farms. While the bulk of this investment will be made in Spain, ENDESA considers Portugal to be an important market in which to expand in the field of renewable energy ahead of the future integrated Iberian market. ENDESA currently participates in several projects in Portugal (100 MW) and is developing a further 60 MW of wind farm capacity. In the rest of Europe, ENDESA intends to bring on stream more than 600 MW of renewable capacity in the period, 400 MW in Italy and 200 MW in France. Planned investment for this is around Euro 600 million. The Company considers the development of new renewable energy capacity in Italy to be an investment opportunity that will enhance its generation mix in that country. ENDESA currently has 20 MW of wind farm capacity in Sardinia and recently signed a framework agreement with Gamesa Energia by which it will acquire from this company wind farms in Italy with a total installed capacity of 200 MW in a period of three years. Furthermore, ENDESA has been awarded 100% of the Italian company IDAS, owner of the development rights for three wind farms in Sicily (Italy), with total installed capacity of 90.95MW. In Latin America ENDESA sees scope for the development of new projects in those countries where it already operates by contributing its experience and know-how. It also hopes to develop the flexible mechanisms envisaged by the Kyoto protocol in this region.