Madrid — Spanish power utility Endesa is set to increase investments in Spanish power grids as part of Italian parent company Enel’s $63 billion investment plan.
The increase would come at a sensitive time in Spain. A massive blackout that hit Spain and Portugal on April 28 reignited the debate about investment needs in the country’s power networks and the return on such investments.
Enel said on Monday it plans to invest some 26 billion euros ($31 billion) in power grids through 2028. Of this, roughly 21%, or about 5.5 billion euros, is earmarked for Spain, where it operates through Endesa, according to a presentation of the plan.
This would be a significant increase compared with the roughly 4 billion euros Endesa previously allocated to invest in this business under a plan that it will update on Tuesday.
Spain’s competition watchdog recently set the financial return for power grid activities at 6.58% for the coming years, saying it sought to balance network investment needs with consumer protection.
This is well below the more than 7% Spanish power utilities – including Endesa – have called for.
($1 = 0.8480 euros)
Reporting by Pietro Lombardi, Editing by Louise Heavens – Reuters
