ESOCF - ENEL SpA A Textbook Case For Profitable Renewable Energy Transition

2024-02-08 15:50:23 ET

Summary

• ENEL has clear strategies for the growth of its profitable renewable energy business, with a goal of 86% zero emissions by 2026.
• The company plans to invest heavily in grids and renewables, with a focus on integration of renewables and electrification to address climate change.
• ENEL's renewable capacity is expected to reach 73 GW by the end of 2026; it has a 450 GW pipeline with 150 GW at an advanced stage.
• ENEL’s performance compares well with US electricity companies, such as NextEra Energy, that are also transitioning their business to renewables.
• ENEL is a very solid Italian energy company, with a strong South American presence, that is well worth considering.

Late last year, Luca Socci published an excellent financial summary of ENEL’s ( OTCPK:ENLAY )( OTCPK:ESOCF ) business activities, which showed lots of good signs for 2024. I’m interested in qualitative aspects of the business of companies, especially those leading the energy transition from fossil fuels to decarbonized renewable energy. ENEL is interesting in relation to the energy transition, and I’ve analysed previously a minor aspect of ENEL’s business, ocean power, that could become interesting in the future. Ocean power continues to show promise, but it is still too early to get involved in the heavy lifting. Ocean technology advancements are still dominated by corporate minnows. I’ve updated my views about how wave technology is progressing elsewhere. ENEL continues to have a webpage that addresses tidal (maturing) and wave energy (pre-commercialisation), but as yet there are no specifics about how it plans to participate in these forms of energy capture....

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