August 2, 2018 Read More →

Shift to renewables across Enel’s global footprint exceeds projections

S&P Global/Platts:

Italy’s largest power company Enel said it expects to beat its own renewable addition targets by 2020, as it pivots its generating model away from coal and grows its renewable footprint both in Europe and worldwide.

CEO Francesco Starace told analysts on a conference call Tuesday evening that 90% of the company’s 7.8 GW target of new additions for 2020 is secured, and the company is certain it will “go beyond that target.”

Enel said that it currently has 3 GW of projects in execution, of which, 2.4 GW is wind. It has 1.8 GW under construction, of which 1.4 GW is wind; and 1.2 GW is ready to build, of which 1.1 GW is wind. Of the total, around one third is in Europe and North Africa.

The company said it added 3.4 GW in the last 12 months — a record for one year — and expects to bring online 800 MW in H2, without saying which projects.

Starace said he expects the current favorable climate — where one can make money in a competitive environment — to last for five more years, with utilities able to preserve margins and see no changes to their returns despite cost reductions and increased competition.

Enel had been “careful not to win all the time,” Starace said, noting that while Enel won 5 GW from various competitive processes during 2017, it also missed out on 9.5 GW tendered.

The company’s renewable energy production in Italy exceeded that of fossil-fired plants in the first half of the year, accounting for 52% of the total, while in Spain, renewables chipped away at thermal’s significant lead, accounting for 21% of Enel’s output.

Across the whole group, including other European markets, North Africa and South, North and Central America, total Enel H1 generation of 121 TWh was split 41.4% to renewables and 58.6% to fossil/nuclear.

More: Italy’s Enel expects to exceed 2020 renewable addition target

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