After the rumors this morningofficial confirmation arrives: Fulvio Conti, CEO of Enel, signed a memorandum of understanding in Beijing with Liu Zhenya, president of the State Grid Corporation of China, the world's largest energy distribution and transmission company. The agreement has as its objective lcooperation in the field of technologies for intelligent electricity distribution grids.
In the wake of the news, by mid-morning Enel's share on the Stock Exchange gained 1,17%, to 4,152 euros, the highest since 2011.
Conti specified that “today's agreement marks the beginning of an important partnership that recognizes Enel's potential contribution through its technology and experience, as well as the significant progress made by State Grid in the field of smart grids and renewable energy. I am confident that the ongoing cooperation between Enel and China's leading energy companies, such as State Grid, will create value and opportunities for all parties involved."
During his visit to Beijing, Enel's CEO also met Cao Peixi, president of the China Huaneng Group, with the aim of strengthening and extending the existing collaboration between the two groups. Within the first half of 2014, a cooperation framework agreement will be signed, focusing on the development of shared technologies, the carbon strategy, energy investments and academic exchange, through the respective research foundations.
According to the World Energy Outlook 2013 published by the International Energy Agency, by 2035 China's electricity demand will represent 31% of the global one and, if no new containment actions are taken, the Asian country's emissions will become the double that of the United States.
To mitigate this trend and encourage a transition to a low-carbon economy, the Chinese government has introduced new policies to support and develop clean energy industries, using nuclear, solar, wind and biomass technology . Similarly, the authorities are promoting the use of hybrid or electric vehicles, energy efficiency measures and environmental protection technologies.
Other policies are aimed at supporting research and innovation in the field of new technologies. In addition to growing energy consumption and greater awareness of environmental issues, another major emerging trend in China is that of strong urbanization. It is estimated that by 2020, 60% of China's population, which amounts to 1,3 billion people, will live in cities. In order to absorb this massive wave of migration, the country will need to invest in innovative and sustainable transport networks and urban infrastructure, so as to ensure that the new population growth meets environmental objectives. For this reason, urban planning has been set as one of the priorities by the Beijing government.
