Costa Rica , Guatemala , Argentina , Colombia , Chile , Brazil , Peru and Panama
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Snapshot: The US$6.7bn spending plans of Enel in LatAm

Bnamericas Published: Tuesday, November 29, 2022

The two biggest Latin American units of Italian energy giant Enel plan to invest a combined US$6.7bn in the region in 2023-25.

Enel has earmarked the bulk for renewables capacity and grid projects.

The company is targeting countries most advanced along the decarbonization and energy transition highway, Enel Américas CEO Maurizio Bezzeccheri told investors during a presentation in Chilean capital Santiago on Monday.

“We are going to concentrate our efforts on the countries we believe are more aligned with the acceleration of the energy transition,” Bezzeccheri said.

Parent Enel, which aims to reach zero-emission generation by 2040, recently named Brazil, Colombia and Chile as three of its six core global markets and said it was pulling out of Argentina and Peru.

Successful execution of project development plans requires stable regulatory frameworks, policy support, modern energy sectors and agile permitting, investors were told.  

ENEL AMÉRICAS

Enel Américas – which groups together the firm’s operations in Brazil, Colombia, Argentina, Peru and Central America – plans to spend US$5.0bn in 2023-25, with grid work accounting for 51% and renewables 31%. Retail accounts for 4%, energy transition solutions unit Enel X 3%, and thermal generation 1%. 

By country, Brazil accounts for 51% of total outlay, followed by Colombia with 33%. A further 10% will be deployed in Brazil under the stewardship model, where the company will leverage the capital of third parties to develop some 2GW of renewables projects. Central America accounts for 1% and Peru, prior to its planned exit in 2023, will account for 5%.

By 2025, Enel Américas’ installed capacity should stand at 12.6GW, down from around 16GW currently, with renewables accounting for 98%, up from 71% today. Peru and Argentina together account for about 6.7GW, mostly hydropower and thermoelectric.

Enel Américas has a 60GW gross pipeline of projects, with solar accounting for 79%, wind 19% and battery storage 2%. Seventy-four percent of planned new capacity corresponds to Brazil, 25% to Colombia and 1% to Panama. Some 36GW is early stage, 24GW mature stage. The company has some 2GW under development, around half wind, half solar. This capacity is due to be reached by 2024.

ENEL CHILE

Enel Chile estimates 2023-25 capex will reach US$1.7bn, with renewables accounting for 71%, grids 18%, thermoelectric 10% and Enel X 1%. Around US$1.5bn is due to be deployed in 2023-24.

Solar projects account for 47% of renewables segment outlay, wind 25%, hydropower 14%, battery storage 14% and geothermal 1%.

The Chile unit – whose net installed capacity stands at 8.6GW – has a 1.3GW portfolio of solar, wind and hydroelectric projects being built or connected. By 2025, installed capacity is expected to stand at 9.5GW, according to the investor presentation.

Enel Chile has a 30GW gross pipeline of projects, with some 15GW early stage, 14GW mature and around 1GW in execution, the presentation shows. Solar accounts for 44%, wind 33%, battery storage 22% and hydropower 1%.  

Enel Chile units are Enel Green Power Chile, Enel Generación Chile, Enel Transmisión Chile, which is being sold, Enel Distribución Chile and Enel X.  

CENTRAL AMERICA, MEXICO

Central America

In Central America (Costa Rica, Guatemala and Panama), Enel Américas has 646MW of installed capacity (545MW wind and 101MW solar), according to the Q3 presentation.

Costa Rica, according to the Enel Américas website, accounts for 81MW via three hydropower plants, Panama 395MW via 10 solar and hydropower plants and Guatemala 164MW via five hydropower plants. 

Mexico

Installed capacity: 2.98GW, chiefly wind and solar. 

Enel operates in Mexico’s power market (generation) via EGP Mexico.

 

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