Italian ENEL expects to invest 5 billion euros in Brazil in next 3 years

RIO DE JANEIRO, BRAZIL – ENEL, an Italian multinational manufacturer and distributor of electricity and gas, maintained at €5 (R$31.3) billion its investment forecast in Brazil for the next three years. For the company, the worst of the water crisis in the country has already passed and the solution to avoid new problems is the expansion of solar and wind sources.

In its long-term strategic plan announced on Wednesday (24), Enel brought forward by ten years, to 2040, the goal of zero net carbon emissions, and further announced the exit of coal segments by 2027 and natural gas by 2040.

The company’s goal is to triple renewable energy generation capacity by 2030, reaching 154 GW, almost equivalent to Brazil’s current generation capacity of 172 GW, a figure that includes all energy sources.

The investment forecast in Brazil is equivalent to that announced in the previous plan and focuses on renewable energies, a priority area in the company’s new investment plan, which foresees €45 (R$282) billion by 2024 all over the world.

In an interview to detail the investments, however, the company’s president, Francisco Starace, said that the figures are indicative and not a guarantee of investments, which will depend on the attractiveness of the projects and regulatory issues.

Enel is the largest operator in the electricity distribution segment in Brazil, with 18 million customers in São Paulo, Rio de Janeiro, Goiás, and Ceará. Through its subsidiary Enel Green Power, it has a stake in hydroelectric plants and solar and wind farms, with 4.3 GW (gigawatts) installed.

This Thursday (25), the company inaugurates a new wind farm in Bahia, Morro do Chapéu 2, with an installed capacity of 353 MW (megawatts). It is the fourth renewable power plant inaugurated by the company in Brazil this year.

With the new projects, the volume of renewable energy generated by Enel in Brazil grew by 90% compared to the same period in 2020. These sources, Starace said, will help the country avoid new risks of rationing, such as the one experienced in 2021.

“Obviously, the more wind and solar we put in the [Brazilian power generation] mix, the more we free Brazil from this great dependence on hydroelectric plants,” said the executive, who said he does not expect new impacts of the energy crisis on his operations in the country.

Of the total 210 billion euros (R$1.3 trillion at today’s exchange rate) planned by the company through 2030, €170 billion will be invested directly and €40 billion through companies in which Enel has a stake.

The volume of own investments is 6% higher than the plan announced in 2020. “We will continue to grow in renewables, expanding what is already today the largest private renewable asset base on the planet,” Starace said.

The current plan creates a new customer services unit to take advantage of opportunities generated by the increasing electrification of the economy and focus on segments such as electric mobility. The company’s goal is to expand electricity sales by 30% by 2030.

In addition to the popularization of electric cars, Enel sees migration of consumers from natural gas to electricity in the coming years, with the popularization of batteries. “In two decades, few Europeans will be using gas. Many will migrate to electricity,” commented the executive.

With information from Folha

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