Enel sheds part of 1.7-GW Italian BESS portfolio to Sosteneo fund

On Friday, the Italian utility firm Enel SpA (BIT: ENEL) announced that it had reached an agreement to sell 49% of an Italian business that owned the rights to a portfolio of 1.7 GW of battery energy storage systems (BESS) and a few open cycle gas turbine (OCGT) facilities.

Enel Italia SpA, the utility’s domestic division, will sell its interest in Enel Libra Flexsys Srl to Sosteneo Fund 1 HoldCo Sarl for about EUR 1.1 billion (USD 1.19 billion).

With the proposed purchase, Enel Libra Flexsys Srl will have an enterprise valuation of EUR 2.5 billion, subject to modifications in consideration.

The buyer is a vehicle for investments in an energy transition fund run by Sosteneo SGR Spa, an Italian infrastructure investor.

It will receive a minority interest in 23 battery storage assets and three OCGT plant upgrading projects with a combined capacity of 900 MW as a result of the purchase. Enel Libra Flexsys will hold the remaining share going forward.

“This partnership with a leading player such as Sosteneo enables us to further accelerate the development of storage solutions supporting Italy’s energy system [..],” said Stefano De Angelis, CFO of the Enel Group.

The divestment is aligned with Enel’s strategy to keep control of strategic assets and upsize returns on invested capital. The deal is pending regulatory clearance and is expected to be finalised in the first half of 2024.

(EUR 1.0 = USD 1.085)


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