CIG has learned that the 92% Enel owned Spanish unit Endesa SA recently announced that it was in discussions with Enel over the possible benefits of merging its renewable energy assets with the separately held assets of the Italian utility.
"The idea is to set up a joint venture that is majority owned by Enel and into which Endesa would place its renewable assets in Spain, while Enel would place its Eufer assets," CIG believes a source with knowledge of the matter said."EGP would eventually take ownership of the Enel share in the joint venture, which could be around 60%.”
The renewable energy assets in Spain are divided between 2.7GW of generation capacity held through Endesa, and a 50% stake in its 1.2 GW Eufer joint venture with Gas Natural, according to the firms involved websites.
CIG believes that Gas Natural is reviewing a proposal by Enel, considered Europe’s most highly indebted utility, to break up Eufer and split its assets.
The plan to save on operating costs by grouping all of Enel’s Spanish renewables assets and incorporating them into Enel Green Power seems a savvy decision ahead of the partial listing of the unit planned for later in 2010, CIG believes analysts agreed.
