Energy transition
Important steps for the development of battery projects and open cycle plants in Italy. Enel SpA has in fact just announced that it has signed an agreement with Sosteneo Fund 1 HoldCo S.à.rl for the acquisition of 49% of the share capital of Enel Libra Flexsys Srl. This operation is part of the strategic plan of the Enel Group and represents an important step in the energy transition process.
The strategy
Enel Libra Flexsys is a company wholly owned by Enel Italia, created for the construction and management of a portfolio of battery energy storage projects (Battery Energy Storage Systems, BESS) and the refurbishment of open-cycle gas plants (Open Cycle Gas Turbines, OCGT). The battery energy storage projects will have a total capacity of 1.7 GW, while the gas redevelopment projects will have a total capacity of 0.9 GW.
The agreement provides for Sosteneo HoldCo to acquire 49% of the shares of Enel Libra Flexsys for a consideration of approximately 1.1 billion euros. The consideration will be subject to an adjustment mechanism typical of this type of operation. The Enterprise Value, referring to 100% of Enel Libra Flexsys and recognized in the agreement, is estimated to be approximately 2.5 billion euros upon completion of the expected investment cycle.
Stefano De Angelis (photo), CFO of the Enel Group, commented that energy storage systems are a fundamental element in the energy transition path in which Enel is strongly committed. This partnership with Sosteneo will allow us to accelerate the development of storage solutions to support the country's energy system, optimizing capital allocation and creating value for all stakeholders.
The strategic asset
The operation is in line with the “Partnership” model outlined in the Enel Group's strategic plan, which aims to maintain control of strategic assets and maximize returns on invested capital. The completion of the transaction is expected by the first half of 2024 and is subject to the approval of the competent Antitrust Authorities and the golden power procedure at the Presidency of the Council of Ministers.
The transaction is expected to have a positive effect on the Enel Group's consolidated net financial debt of approximately 1.1 billion euros at closing. However, no significant impacts on the Group's economic results are expected, as Enel will continue to maintain control of Enel Libra Flexsys and consolidate it fully.
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