Start Enel will invest 4.9 billion euros to expand the renewable energy market and create jobs in Brazil

Enel will invest 4.9 billion euros to expand the renewable energy market and create jobs in Brazil

April 19, 2022 5:04 pm to 5:04 pm
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Enel Headquarters – image: Reuters

Enel is planning to invest billions of dollars in renewable energy in Brazil. In addition, it plans to invest in the production of green hydrogen in Bahia, contributing to a reduction in pollutant emissions.

Enel will focus its investments in electrification and renewable energy in Brazil, as announced by Francesco Starace, the group's global CEO, this Monday (18). Electrification should contribute to the process of energy transition of various sectors of the economy, mainly in industry and transport, also advancing in decarbonization. According to data, Enel will invest €9.8 billion between 2022 and 2024, with a little more than half of this amount going to the renewable energy sector in Brazil. Starace, however, does not rule out the chances that this percentage could rise to 70% or 60%, which may vary depending on the results achieved in the projects.

Brazil is responsible for 40% of Enel's growth in Renewable Energy

Brazil has good conditions for the generation of renewable energy, such as solar and wind, in addition to presenting a demographic expansion, which goes on the opposite side of what happens in Europe.

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Brazil is responsible for around 40% of the company's growth in renewable energy in Latin America. The investment projects will be focused on the city of São Paulo and will be subject to the approval of the municipal government. Enel's BDRs closed last Thursday (14) up 0.93%, at R$ 26.13. However, in the last year, the paper is accumulating a loss of 42,89%.

Starace affirms that the country will represent half of the growth of the renewable energy in the next 10 years, with Brazil being under-represented in his view. The statements were made at an event in São Paulo, where the executive stated that there are prospects for expanding investment in solar and wind energy projects in the future, considered renewable energy.

Enel plans to install another 3,000 MW of renewable energy in Brazil

The company's CEO says that if a photo is taken today, Brazil is underrepresented. If a new photo is taken 10 years from now, the country will be much larger than it is currently represented. Starace points out that countries have reached the physical limits of market expansion, while the country has a tendency to accelerate due to its enormous geographic reach.

Enel plans to add 3,000 MW in the country by 2025. Currently, the group operates in the country with more than 4.7 GW of renewable energy, where 1.2 GW is solar energy and 1.3 GW is hydro. The momentum is underway and it is not surprising, because the potential is great, the country is very rich in natural resources.

Enel encourages new investments in green hydrogen in Bahia

Enel signed, a few weeks ago, a Memorandum of Understanding for feasibility studies of green hydrogen production projects to be carried out by the Enel Green Power group company.

The partnership's mission is to join forces to analyze the assumptions that influence the feasibility of these green hydrogen projects in the state, encouraging the future development of the entire production chain in the region.

According to Roberta Bonomi, the company believes in green hydrogen as a complementary and essential strategic tool for reducing CO2 emissions, especially for specific activities in the economy that, for economic and technical reasons, cannot adopt in their production processes the electrification from renewable energy. It is worth mentioning that the memorandum of understanding with the government of Bahia is the company's first in Brazil.

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