Enel is the first private energy producer from renewables, in the world. And in 2022, through Enel Green Power (EGP), it confirmed this leadership with a record number of new plants installed: 5.223 MW of new renewable capacity, including 387 MW of storage systems (BESS, Battery Energy Storage Systems), up on the result of the previous year. Enel's growth in renewables is progressing, as are the plans for the sale of renewable assets in Peru, intended for debt reduction, as envisaged in the 2023-25 Strategic Plan.
The new renewable capacity installed last year includes more than 80 plants, mainly solar (2.622 MW) and wind (2.160 MW). With the new leap of 2022, Enel reaches a total renewable capacity of approximately 59.000 MW (including batteries). Coming then toItaly, EGP manages around 14.700 MW of renewable plants including batteries and produced around 2022 TWh (billion kilowatt hours) in 18,3, of which: 12 TWh from hydroelectric, 1,3 TWh from wind and solar, and 5 TWh from geothermal .
These are the latest, encouraging data provided by Enel Green Power itself on its supremacy. “In 2022 Enel Green Power – is the comment of the CEO Salvatore Bernabei – confirms itself as a global leader in the renewable energy sector. Despite the difficulties of a year characterized by geopolitical conflicts and the exacerbation of the macroeconomic context, we continue to grow with the ambitious goal of reaching 75 GW of renewable capacity and storage systems by 2025, ensuring particular attention to safety, people and to the environment that hosts our plants”.
Renewables Enel: the Pnrr increases the growth potential in Italy
In Italy, 2023 should be a year of potential growth for renewablesi, also thanks to the better prospects on the authorization front. “We will also intensify Enel Green Power's commitment in the industrial chain – Bernabei adds –: the photovoltaic module factory 3Sun in Catania it will become a Gigafactory as early as July 2024, with the increase of its annual production capacity from the current 200 MW to 3.000 MW". In the first six months of the year, Enel Green Power should start construction sites for renewable plants for a total capacity of over 330 MW in addition to one strong acceleration in the realization of storage systems e the start of construction of 19 new projects for a total capacity of 1562 MW.
In particular, in the first quarter 2023 construction sites will be launched for photovoltaic plants for a total installed capacity of 206 MW in Campania, Emilia Romagna and Lazio. In the second quarter construction sites are expected to start for 125 MW for two photovoltaic plants still in Lazio and a wind farm in Sicily. EGP also intends to accelerate the implementation of storage systems with the launch of 19 new projects in Emilia Romagna, Friuli Venezia Giulia, Lazio, Liguria, Lombardy, Piedmont, Sardinia, Tuscany, Umbria and Veneto.
Enel: not just renewables, debt-cutting sales are on the way in Peru
Il business plan 2023-2025, presented in the autumn by Enel, focuses on divestments, simplifications and debt reduction and forecasts proceeds from disposal of non-core activities for 21 billion of Euro. At least 9 billion will go to reduce the debt. The first estimates are starting to be made on the assets for sale and, in particular, on those currently held in Peru. Second Credicorp Capital, financial services holding company active in Latin America and quoted by MF, exceeds 3 billion dollars the value of the Peruvian assets that CEO Francesco Statace has initiated for sale through Enel Americas. The new strategy - assured Starace - "does not slow down growth in renewables" e concentrates activities in six core countries such as Italy, Spain, the United States, Brazil, Chile and Colombia, where 90% of investments will be made to increase renewable capacity. A path that will sanction the exit from Latin America where Enel is present in Argentina and Peru with renewable generation plants (2 billion) and distribution activities (1,245 billion).
Enel: analysts appreciate the strategy of the Plan, less debt, more renewables
Enel's strategy has been praised by analysts who believe that the Plan "makes perfect sense" and "goes in the right direction" and "if executed successfully, could lead to an increase in forecasts". In particular, like the reduction of exposure in Latin America, Eastern Europe and in the wholesale gas business which “should help reduce the perceived operational risk of the group".
The work of simplification and refocusing of the Group will lead to a profitability improvement and to a contextual one debt reduction of 9 billion euros from 2022 (58-62 billion euros) to 2023 (51-52 billion euros), just in time to mitigate the Fed and ECB rate hikes and with an estimated cost of debt at 3,4 %-3,5% over the period of the plan. A reduction in the ratio is expected in 2023 Net Debt/EBITDA at 2,4-2,5x which analysts deem "worthy of note" and "not too difficult to achieve". Enel: growth in renewables, debt reduction, exit from Peru are therefore three axes on which the management aims to maintain solid navigation of the energy battleship.
2022 was a year of “turbulence” – the analysts underline – and has seen governments "drain" a large portion of working capital (about 3,5 billion out of 9 of negative working capital) to compensate families for the energy price increases with the revenues deriving from extra profit tax to which the company responded by protecting its customers, keeping the costs unchanged in the bill.
The plan and Enel's new strategic lines were also appreciated by the market, which rewarded the stock, bringing its value back to 5,4 euros from a low of 4 euros reached in mid-October, immediately before the presentation of the four-year plan. There performance in this first part of the year it is downright brilliant with a + 7% approx.
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Enel Green Power: this is how new renewable capacity is distributed
- 1.137 MW in Europe, mainly in Italy and Spain;
- 1.364 MW in Latin America, mainly in Chile and Brazil;
- 1.985 MW in North America, mainly in the United States;
- 737 MW in Africa, Asia and Oceania.
The new renewable capacity built in 2022 is capable of producing around 13 TWh a year, avoiding – communicates the group – the emission into the atmosphere of around 9 million tons of CO2 each year, as well as avoiding the purchase of 2,9, 2040 billion cubic meters of gas per year. The result is a further step forward along the Enel Group's decarbonisation roadmap, which envisages the achievement of zero emissions by XNUMX.
