Lack of projects casts doubt on prospects of Enel's renewable energy structure in Russia, liquidation not currently planned - report

MOSCOW. March 11 (Interfax) - The structure of the Italian energy holding Enel, Enel Green Power Rus LLC, continued to operate in Russia in 2024, but its activities were reduced to maintaining a stable financial position, the Russian company said in a report.

Enel Green Power Rus had no revenue in 2023-2024.

As of the end of 2024, the company held 622.87 million rubles in its accounts. As a result, it earned 96.86 million rubles in interest from placing funds on deposits. Net profit from this amounted to 58.84 million rubles in 2024, compared to 207.33 million rubles in 2023.

In 2021, Enel Green Power Rus's revenue reached 710.68 million rubles, but in 2022 it fell to 88.1 million rubles. In Q4 2022, work under the contract for managing a wind farm construction project (terminated in February 2023) was discontinued, the report said.

In the fall of 2022, Enel closed a deal to sell its 56.43% stake in PJSC Enel Russia (now EL5-Energo, with PJSC Lukoil as the main shareholder).

The lack of current income-generating projects, the suspension of wind generation projects and the inability to secure financing from the parent company under current circumstances could raise doubts about Enel Green Power Rus's ability to continue its operations, the company said.

However, despite the current situation, the owners do not plan to liquidate the company. The possibility of revising its core activities or continuing them is currently being considered. For now, Enel Green Power Rus is able to meet its obligations using income from placing funds on deposits, it said.

Enel Green Power is a global division of the Enel Group specializing in renewable energy development. Its Russian structure, Enel Green Power Rus LLC, was established in 2017 and was supposed to handle the full cycle of wind and solar generation projects - from exploring potential sites and preparing pre-project documentation to developing feasibility studies.

Italy's Enel continues to fully control Enel Green Power Rus LLC, the report said. As of the end of 2024, Enel Green Power Rus had two subsidiaries - Belomechetskaya Wind Power Plant LLC and Rodnikovskaya WPP LLC. Previously, it also included Koporye WPP LLC and Tula WPP LLC, but they were liquidated in 2023.

Detailed information is available only for the Rodnikovskaya WPP project. This project by Enel Russia, with a capacity of 71 MW, was selected as part of the competitive selection of a renewable energy capacity supply agreement in 2019. Its commissioning was planned for 2024. In 2022, the company announced its decision to abandon the project's implementation.