Enel Americas to invest USD 5bn mainly in Brazil, Colombia by 2025

• Latin American empire Enel Americas SA (BCS: ENELAM) claimed on Monday that it will certainly invest USD 5 billion (EUR 4.84 bn) in its electricity company in the area under the 2023-2025 strategic plan, and also straight most its investments to Colombia as well as Brazil.

The firm will certainly leave from Peru and also Argentina in 2023, equally as its Italian parent Enel SpA (BIT: ENEL) revealed a week ago, in an effort to "concentrate on countries that are much more progressed in the energy transition and also electrification". This will certainly leave Enel Americas in charge of overseeing procedures in Brazil and also Colombia, and also via Enel Colombia, Guatemala, Panama as well as Costa Rica.

In spite of being the target of disposal, the business in Peru will certainly still receive financial investments from Enel Americas for the initial nine months of 2023. The firm will certainly also proceed investing in its power circulation procedures in the Brazilian state of Ceara befor selling those too next year.

During the preparation period, Enel Americas will invest around USD 2.5 billion in grid modernisation and also digitalisation, allocating 66% of that total up to Brazilian operations, 29% to Colombia and also 5% to Peru.

The business expects the financial investment initiative in this segment will aid it increase the number of grid consumers to 16 million in 2025, up by 6% compared to 2022 quotes. Power distribution is forecasted to rise by 6% in between 2022 and also 2025 to 72.8 TWh.

Investments in the generation company will certainly amount to USD 2.1 billion, with renewables accounting for 98% of that amount and Colombia alone obtaining 40%.

Enel Americas now regulates around 16 GW of total set up capacity, 71% of that renewable-- wind, solar and also hydropower. Once it realises the divestment as well as investment strategy, the group is expected to have 12.6 GW of set up capacity, yet 98% of it will certainly originate from renewables as the share of thermal generation in the portfolio reduces to 2%.

In the discussion of the strategic plan, Enel Americas claimed that it has around 2.4 GW of wind and solar projects in execution today. These projects are located in Brazil, Colombia and also Panama.

Lastly, the company's retail and specialised energy services providing will certainly get an investment of around USD 0.23 billion to USD 0.24 billion, split exclusively between Brazil as well as Colombia.