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Enel Group to reintegrate renewable business and invest in growth

Enel Pavillon at the World Expo 2015 in Milan, Italy (source: Enel Share)
Alexander Richter 11 Nov 2015

Italian Enel is preparing a big strategic reorganization of its Latin America business, but also the re-integration of its renewable energy arm Enel Green Power, as well as plans for heavy investment into Africa, among others in geothermal.

Italian utility Enel Group is preparing for a key week for the company. On November 18, 2015, the company plans to announces its business plan for 2016 to 2019. So far the company has announced an investment of $6.2 billion in Latin America to continue its growth plan. This requires though that the reorganization of old assets of Endesa is finally approved.

Of the investment $4.5 billion ($1.4 billion in generation investments and $3.1 billion in distribution) is planned to go to Peru, Colombia, Brazil, and Argentina, while Enel plans to invest up to $1.7 billion into Chile ($1.5 bn into generation and $200m into distribution).

Enel is the controlling shareholder in Enersis, the leading private electricity multinationals in Latin America. Currently, it has direct and indirect interests in the electricity generation, transmission and distribution business, and related areas. It operates in five countries in the region: Argentina, Brazil, Chile, Colombia and Peru.

Currently there are reorganization plans for Enersis, which would simplify the corporate structure and separate Chilean operations from those in other Latin American countries. The non-Chilean businesses are expected to be then merged. The plan is to found Enersis Chile and Enersis Americas, which both will be based in Chile and see a dual-listing on the Santiago and New York Stock Exchanges.

It is also expected that Enel will announce a takeover bid of Enel Green Power, the renewable energy arm which was spun off in an IPO in 2010.

The strategic plan prepared by Enel also includes heavy investments into Africa, where the company plans to build 5,000 MW mainly from renewable energy, including geothermal and hydro. The strategic plan prepared by the Italian also include heavy investments in Africa, where the company plans to build about 5,000 MW, mainly from renewable energies, including geothermal and hydro.

Source: ElEconomista