Financial Times (blogs)
http://blogs.ft.com/beyond-brics/2012/03/23/enel-renewables-looking-further-afield/#ixzz1pz9WrbLm
by Giulia Segreti
Time for a change of plan. With the Mediterranean region in economic trouble, Enel, the Italian electricity utility, is looking not just at new energy, but also new markets.
Enel Green Power, the listed renewables unit of Italian utility Enel, plans to invest €6.1bn over the next four years as it shifts its focus from mature Europe to new emerging markets, including Turkey, Morocco and South Africa.
Presenting his strategic plan in Rome on Friday, Francesco Starace, chief executive of EGP which was floated in late 2010 and is Italy’s largest renewable energy company, said 43 per cent of new spending would go to emerging markets, 36 per cent to Europe and 21 per cent to North America.
Investments would create an additional capacity of 4.5 gigawatts, taking the company’s total capacity to 11.4GW, with a breakdown of 61 per cent in Europe, 21 per cent in emerging markets and 18 per cent in North America.
Starace said mature markets such as Italy and Iberia would represent less than 40 per cent of the company’s growth target, down from some 70 per cent in the previous strategic plan.
If regulation became harsher in areas like Italy and Spain – which have experienced a renewables “bubble” followed by cuts in state subsidies – then additional capital expenditure would be directed to emerging markets, he said.
EGP plans to develop 100MW in Morocco through government wind power tenders, and will join Japan’s Sharp in competing for solar power tenders in South Africa.
EGP expects annual average growth of core earnings at 13 per cent, with earnings before interest, taxes, depreciation and amortisation rising to €2.6bn in 2016 from €1.7bn in 2012.
EGP shares were up 2.1 per cent in afternoon trading on Friday. In line with announced dividend policy, EGP said it would pay out “no less that 30 per cent” of consolidated net income.
Related reading:
Enel to cut costs in push to reduce debt, FT
Goldman Sachs invests in green India, beyondbrics
BP in $680m Brazilian bioethanol deal, FT
China backing for solar power, FT
Tags: Enel, Enel Green Power, renewable energy
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