Oil Report

Enel, Terna agree on mutual power project development abroad

MILAN, May 11 (Reuters) - Italian utility Enel and power grid operator Terna have agreed to pool resources to develop projects in countries where they have strategic or commercial interests.

The state-controlled utilities said in a joint statement on Monday that the three-year agreement would allow them to develop transmission-related power projects outside Italy that were of “mutual interest”.

Enel CEO Francesco Starace, who is shifting the company’s focus away from traditional large-size power generation plants, said in the statement Enel was ready to support energy infrastructure growth in countries where it worked.

“The collaboration agreement with Terna is key for the development of additional power grids and interconnections in countries outside of Italy with a shortage of infrastructure, especially in developing countries,” he said.

Enel, which is present in more than 30 countries, is betting on emerging markets, green energy and digital power grids to help boost profits.

Terna, one of Europe’s biggest power transport groups, has said it is ready to play a role in integrating Europe’s power transmission networks.

Last year it expressed an interest in buying a 66 percent stake in Greek power grid ADMIE but was forced to put its plans on hold when Greek premier Alexis Tsipras halted the previous government’s privatisation plans. (Reporting by Stephen Jewkes; editing by David Clarke)