“We will deploy electric buses in large cities,” says Brazil’s ENEL president

RIO DE JANEIRO, BRAZIL – ENEL’s CEO in Brazil Nicola Cotugno is determined to lead initiatives for the introduction of electric vehicles in Brazil. This year, he intends to announce the formation of the multinational’s consortiums with automakers and transportation companies to introduce electric bus fleets in São Paulo, Rio, and Salvador.

In the “Olhar de Líder” series of interviews from Estadão/Broadcast, Cotugno said that Brazil is a “base” of renewable energy for the Italian company.

Is the increase of business in the free energy market a trend?

The free market is very competitive, with significant supply. The new power plants, and especially the renewable ones, are selling and delivering energy to this market. The issue is how the path of liberalization and opening of the market to customers in the coming years will come to be. This is a part that depends on regulation.

Without a doubt, we are going to see a reduction in this level of consumption (needed to enter the segment) and, because of this, there is going to be growth. ENEL Brazil grew 20%, despite the pandemic. The clients are asking for renewable energy. Not only because of the price, but also because this is an issue of environmental commitment, of sustainability. Many companies are making it a priority not to do business with highly polluting energy.

Does Enel have a goal for renewable energy?

We have a goal to pursue decarbonization, to create additional renewable generation capacity. And to use this clean energy to replace other forms of energy. For 10 years we have been developing  a strategy to strengthen renewables in Brazil and around the world. We announced the start of a 1,300 MW solar and wind power project in Brazil, which will add to the 3.4 MW we already have in hydro, solar, and wind power. These 1,300 MW will generate 10,000 jobs and investments of more than R$5 billion.

The electric car in Europe is a reality, but it is still delayed here…

We accompany the growth of this technology. In the last ten years, the cost of batteries, the most important part of the car, decreased greatly. By 2023 at the latest, an electric car will cost the same as a gasoline car. And the (maintenance) cost of the electric car is 20% to 30% of what is needed for a gasoline car. The savings are gigantic. The equation is now convenient. The obstacle is the price of entry, the investment to buy.

So I believe that private agents will understand the electric car as a good alternative in a year or two, when the price comes down to the equivalent of a gasoline car. Cab drivers, or a bus company, are currently considering and and understanding (the advantages).

What is lacking for this leap?

In Europe, countries are saying that they will no longer sell gasoline cars from 2025 or 2030. Here, obviously, there is a regulatory issue for this change. But I’ll say it again: the numbers are good. In Brazil, the potential is huge. The country has a great highway network, a huge number of cars, car manufacturers, and a sensibility to economize.

I am convinced that this is a magnificent future. In terms of public transportation, we are currently actively negotiating and I hope, before the end of the year, to talk about the business of deploying electric buses in large cities. We are talking about hundreds or thousands of electric buses, not just something for demonstration.

With whom are you negotiating?

We are setting up consortiums of companies that will deliver the buses, operate them, and think about the electrical part of the process. With the experience we have in developing batteries, we will develop this under a cooperation scheme. The focus will be on big cities. In Chile, we delivered the first 100 electric buses in Santiago, and now we are going to Bogotá (Colombia).

In Brazil, we feel that transportation is a major problem in cities like São Paulo, Rio, Fortaleza, and Salvador. Therefore, we think that the solution to the problem is a business for us.

What is the investment?

It is high. That is why we are going to focus on this form of consortium. We are going to replace buses at the end of their useful life. It is also a great opportunity to requalify the public transportation system and decongest traffic in big cities. We observed in Santiago a very interesting phenomenon: customers like to take an electric bus, and this was an incentive to use public transportation. They are new vehicles, with air conditioning, Wi-Fi, quieter. Transportation is responsible for air quality in almost the same way as energy production.

What energy matrix does ENEL seek to have in Brazil?

ENEL invests heavily in Brazil with acquisitions in distribution and many constructions in the renewable area. Brazil is a base, specifically of the renewable matrix of generation.

With criticism of it fight against the pandemic, is it difficult to ‘sell’ the idea of investing in Brazil?

Large investors look carefully at what is happening in the countries. Despite specific problems, such as the pandemic, investors continue to believe in the country. The regulatory security of contracts is crucial for investors to continue believing.

Source: Estadão