For Enel it's (Always) Time for Brazil

Published on Wednesday, 3 June 2015

Brazil is one of Enel's most attractive development fronts. The Latin American giant focuses highly in the Group's business plan, which allocates 49 percent of its five-year period investments to the growth of its activity in the subcontinent, and includes Brazil - together with Chile and Mexico - among the countries that will be required to achieve 38% of the 7.1GW of new installed capacity from renewable sources by 2019. But Enel's presence in Brazil is not only connected with power generation, it also involves other activities, ranging from distribution to the retail market - which feature as other important fields of development and growth for the Group.

Renewable energy in Brazil has long been central for the Group. With 376MW installed, of which 283MW from wind, and 28 plants online, Enel Green Power has enjoyed a constant growth in this country, in the first five months of 2015 showing a further increase with an additional 129MW that have been included within EGP's scope, between assigned tenders and plants in the initial phase of construction. It's true that the country, with 71 percent of hydropower in its generation mix, has been practically compelled to follow the path of new renewable sources: the continuous growth in energy demand (+3.2 percent per year) and the long periods of drought have led the Brazilian government to increase electricity capacity and further diversify sources, turning in particular to solar and photovoltaic power.

Renewables alone however are not sufficient to support the country's development. In fact, clean sources pay the price of the backwardness of a distribution system that still suffers from a high level of grid losses, accounting for around 15 percent of injected electricity. This is why the experience gained by the Group in smartening up network efficiency and distribution automation is a further growth driver for Enel, which has since long launched a number of measures aimed to improve the distribution service throughout Latin America. Results have already been achieved in this field in the subcontinent, including a 40 percent reduction in the average amount of supply outages and the introduction of workforce management digital systems to efficiently manage interventions on the ground.

Consumer service on the retail market is another field in which the Group is active in Brazil, with three companies supplying electricity to end users. In all, Ampla, Coelce and PrĂ¡til provide services to more than 6.5 million Brazilians. These customers are being offered an increasingly wide range of solutions that are no longer limited to mere commodities, but also include added-value services such as home LED lighting, self-production renewable plants, air-conditioning systems and high energy efficiency electric motors and even sustainable mobility solutions such as electric bicycles.