Italian company Enel plans to invest $31 billion in Brazil in three years

The Italian Enel maintained at 5 billion euros (R$ 31 billion, at the current price) its investment forecast in Brazil for the next three years. For the company, the worst of the water crisis in the country is over and the solution to avoid new problems is the expansion of solar and wind sources.

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

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

The forecast for investments in Brazil is equivalent to that announced in the previous plan and is focused on renewable energies, a priority area in the company’s new investment plan, which foresees 45 billion euros (R$ 282 billion) by 2024 worldwide.

In an interview to detail the investments, however, the company’s president, Francisco Starace, said that the numbers are indicative and not a guarantee of contributions, 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 the subsidiary Enel Green Power, it has participation in hydroelectric plants and solar and wind parks, 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 plant inaugurated by the company in Brazil this year.

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

“Obviously, the more wind and solar we put in the mix [de geração de energia brasileiro], the more we freed Brazil from this great dependence on hydroelectric power plants,” said the executive, who said he did not expect any further impacts from the energy crisis on his operations in the country.

Of the total of 210 billion euros (R$ 1.3 trillion, according to today’s quotation) foreseen by the company until 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 now the largest private base of renewable assets on the planet,” said Starace.

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

In addition to the popularization of electric cars, Enel sees a migration of natural gas consumers 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.