Enel cautious on US solar panel project, committed to Brazil grids

MILAN (Reuters) – Italy’s Enel has grown cautious on a solar panel project in the United States, but is committed to invest to keep its concessions in Brazil and Chile, the utility’s chief executive said on Monday.

Presenting the group’s updated three-year strategy to 2027, Enel’s CEO Flavio Cattaneo said the company would press ahead with a plan to build a solar panel factory in Oklahoma only if it finds a U.S. investor ready to take the majority of the project.

“If a U.S. investor does not believes in it, why should I do it?” Cattaneo said.

The project announced by previous Enel CEO Francesco Starace could have been eligible for funds under the Inflation Reduction Act launched by U.S. President Joe Biden’s administration, but so far, no partners have emerged.

Biden’s administration is nearing an end and President-elect Donald Trump, who is set to take office in January, is considered less likely to support renewable energy-related projects.

In its updated three-year plan, Enel said it would invest around 43 billion euros, 7 billion euros more than envisaged in the 2024-2026 strategy.

The group will devote 75% of investments to Europe, and the rest to Latin America and North America.

The utility said it would present an investment plan in Brazil to win concession renewal for the distribution grid in Sao Paulo, where a major climate event disrupted power supply for days in early October, sparking criticism from politicians amid local elections.

“Climate events have become more frequent and severe… there is a need to invest quickly in grids. We are ready to do it with the aim to win concession renewal,” Cattaneo said.

He said that the group wants to continue to operate in Argentina and in Chile, a country where extreme climate events also hit the group’s grid last August.

“We believe we have acted according to all regulations’ parameters and we are open to find a friendly solution to continue to operate our distribution grid (in Santiago),” he said.

The United States, Brazil and Chile are considered core countries by Enel, alongside Colombia, Spain and Italy.

Speaking about Italy, Cattaneo said the group received dozens letters of interest from operators interested in connection and electricity supply services for data centres.

The group plans to set up a new company that will offer connection services, which could have a value of around 1 billion euros including debt.

(Reporting by Francesca Landini; Editing by Bernadette Baum)