Sosteneo to buy 49% of Enel’s battery business

Italy’s biggest utility Enel has agreed to sell a 49% stake of its energy storage business to Generali Investments’ Sosteneo for around EUR 1.1 billion ($1.2 billion). The deal will value the Italian group’s subsidiary – Enel Libra Flexsys – at around EUR 2.5 billion, including debt.

Enel Libra Flexsys was established for the development and management of a major portfolio of energy transition infrastructure in Italy, composed of 23 BESS projects with a total capacity of 1.7 GW and three open-cycle gas turbine projects with a total capacity of 900 MW.

The deal is pending regulatory clearance and is expected to be finalized in the first half of 2024. The sale is aligned with Enel’s aligned with its strategy “to retain control of strategic assets while maximizing productivity and returns on invested capital” and part of its broader effort to reduce its net debt.

“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,” says Stefano De Angelis, CFO of Enel Group.

Sosteneo launched in September 2023 as part of insurance and asset management provider Generali Investment’s ecosystem, with a focus on equity investments in greenfield infrastructure projects related to the energy transition.

Prior to the Enel deal, the fund’s BESS fleet stood at 840 MWh. The projects under its management include: the 370 MWh Koorangie battery in the Australian state of Victoria developed by Edify Energy, 373.5 MWh Sheaf Energy Park in Kent, UK, and the neighbouring 99.8 Richborough Energy Park, both  developed by Pacific Green Technologies.