Enel has agreed to sell a 49% share in its energy storage division, Enel Libra Flexsys, to Sosteneo, a company within the Generali Investments ecosystem.
The transaction is valued at €1.1bn ($1.2bn), according to Reuters.
Enel Libra Flexsys is poised to develop a significant portfolio of energy transition infrastructure across Italy.
This includes 23 battery energy storage system (BESS) projects with a combined capacity of 1.7GW and three open-cycle gas turbine (OCGT) projects with a total capacity of 0.9GW.
The revenue for the project is secured through 15-year capacity agreements with Enel and additional capacity payments from Enel supported by Terna, the transmission system operator in Italy.
The acquisition aligns with Sosteneo's strategic focus on investment in infrastructure that both supports the energy transition and offers the potential for attractive commercial returns.
The revenue model is aligned with the company’s objective of providing access to the benefits of infrastructure for clients – defensive returns that are underpinned by contracted cashflows.
The deal will close in the first half of 2024.
Sosteneo Europe managing partner, chief information officer and CEO Umberto Tamburrino stated: “This partnership with Enel represents a major investment in critical new infrastructure for the energy transition in Italy and is a landmark transaction on behalf of Sosteneo’s clients.
“The BESS and OCGT projects will provide flexibility and strength to the grid that is vital for the integration of more renewable generation into Italy’s energy system.
“We are proud to be selected as the partner-of-choice by Enel for a transaction of national strategic importance in recognition of our strong track record and depth of expertise, particularly in batteries.
“The transaction reflects the values of our shareholder Generali Group and our mission as an investment manager focused on creating positive outcomes for the community and sustainable development.”
In February 2024, the Italian Government announced an investment of €90m in Enel‘s 3Sun solar photovoltaic panel factory in Sicily, Italy.
