Enel's $63 billion investment plan points to higher grids outlay in Spain

Enel’s $63B Plan Signals Bigger Endesa Spending on Spain’s Power Grids

Endesa’s Increased Grid Investment in Spain

MADRID, Feb 23 (Reuters) - 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.

April 28 Iberian Blackout Context

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’s 2028 Grid Capex and Spain’s Share

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.

Comparison With Prior €4bn Allocation

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.

CNMC’s 6.58% Return Framework

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.

Utilities Seek Above 7% Returns

This is well below the more than 7% Spanish power utilities - including Endesa - have called for.

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(Reporting by Pietro Lombardi, Editing by Louise Heavens)