Multinational power company, Enel S.p.(Enel) on Friday announced that it has signed an agreement with Sosteneo Fund 1 HoldCo (Sosteneo) to acquire 49 percent of Enel's battery storage business, Enel Libra Flexsys, for approximately 1.1 billion euros.
Enel will retain control of Enel Libra Flexsys and manage the project portfolio of 23 battery energy storage systems (BESS) with a total capacity of 1.7GW along with three renovation projects for Open Cycle Gas Turbine (OCGT) plants with a total capacity of 0.9GW.
"This partnership with a leading player such as Sosteneo enables us to further accelerate the development of storage solutions supporting Italy's energy system, optimizing capital allocation with the aim to create value for all stakeholders," said Stefano De Angelis, CFO of Enel Group.
Upon closing, the latest acquisition is expected to generate an impact of about 1.1. billion euros of Enel Group's consolidated net debt while it is set to bear no impact on the Group's economic results, Enel stated.
As part of the agreement, Enel will manage the project portfolio in line with the "Partnership" business model outlined in the 2024-2026 Strategic Plan, which aims to retain control of strategic assets while maximizing productivity and returns on invested capital.
Sosteneo is an investment manager that specializes in greenfield energy transition infrastructure projects.
The transaction is expected to be complete by the first half of 2024 subject to conditions precedent as well as regulatory and governmental approvals.
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