Enel and Santander Work Together for their Initial Global Deal to Support Clients' Energy Transition

Published on: 14 March 2022 07:17 PM
by KnowESG

A Brief Summary

Enel, a multinational manufacturer and distributor of electricity and gas, has signed an agreement with Santander, a financial services company in Spain, to support their transition towards more sustainable business models.

Read Full Article Below

The two groups have signed a memorandum of understanding (MoU) to promote collaboration and leverage expertise on both sides. The deal aims at supplying and financing solar facilities, lithium batteries and energy efficiency solutions for corporations, SMEs and households.

According to the MoU, Enel, through Enel X Global Retail, its advanced energy services business line, helps design customised turnkey solutions for clients, while Santander will provide its tailored financing. This collaboration will help foster the clients' energy transition towards more sustainable models.

Alberto De Paoli, Enel Group CFO, said: "Through our partnership with a reputable financing institution such as Santander, we are taking yet another step towards the achievement of a Net Zero society. Sustainability as a business choice can only be pursued through innovation, which is at the core of this agreement.”

Enel has around 54 GW of installed renewable capacity globally, making it the largest private green energy player and plans to triple that amount by 2030. The company vows to exit its thermal fleet and gas retail activities by 2040. It also has a net-zero commitment by 2040 for direct and indirect emissions.

José M Linares, senior executive vice-president at Banco Santander and global head of Santander Corporate & Investment Banking (Santander CIB) said: “We are thrilled to collaborate with a longtime partner such as Enel to further support our clients worldwide in their transition to more sustainable energy models. As pioneers in renewable energy finance, Santander CIB is committed to accelerating this transformation.”

Meanwhile, Santander aims to raise 120 billion euros in green financing between 2019 and 2025 and 220 billion euros by 2030 to support its clients and help them transition to a low-carbon economy. The bank is already carbon-neutral in its operations. It will align its power generation portfolio with the Paris Agreement by 2030 to reach net-zero emissions for the group by 2050 and the transition to a low-carbon economy.