Sosteneo buys 49% of Enel’s battery business for 1.1 billion euros

Italy’s biggest utility Enel said on Friday it had signed an agreement to sell 49% of its energy storage business to Generali’s Sosteneo for around 1.1 billion euros ($1.2 billion).The deal is part of Enel’s broader effort to reduce its net debt and find partners willingly to jointly develop energy transition ventures.

The agreement will value the Italian group’s energy storage business – dubbed Enel Libra Flexsys – around 2.5 billion euros, including debt.

Enel Libra Flexsys, currently 100% owned by Enel, has a portfolio of 23 battery energy storage systems (BESS) with a total capacity of 1.7 gigawatt (GW) and three renovation projects for gas-fired power plants with a capacity of 0.9 GW.

The finalisation of the sale, which is expected by the first half of 2024, is subject to the clearance from the competent antitrust authorities. In addition, the Italian government will review the transaction under its golden power regulation aimed at shielding assets deemed of strategic importance.

Enel will retain control of its battery business, it said in a statement. Last year Generali’s green transition investment manager Sosteneo SGR teamed up with Edison and Saipem to develop a project to decarbonise Italy’s largest energy and steel hub.