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Enel chairman states investments in grids are financially appealing

Investments in power grids are appealing for Italian power utility Enel and other groups that distribute electricity because, once approved by the authorities, they ensure foreseeable returns, chairman Paolo Scaroni stated on Friday.

This was one reason that the Italian group revealed last November it would focus on its grid organization while becoming more selective on the power generation company.

Scaroni said fulfilling the 2050 net-zero carbon emission worldwide goal would require more than doubling high-voltage and circulation grids to carry an increasing volume of electrical energy, which need to gradually replace nonrenewable fuel sources. The investments in grids are capital expenditures that both Enel, (Italy's power grid operator) Terna and electricity companies more than happy to make since - as soon as authorised - they get in the regulated possession base (RAB) and are partially funded by power bills, Scaroni stated speaking at a. business conference in Trento.

The RAB is among the crucial elements to compute income for a. controlled company.

The top executive also said nuclear power would be essential to. meeting decarbonisation targets set worldwide for 2050, including. that Italy would need more than 20 nuclear reactor should. it consist of atomic power in its energy mix.

Nuclear power is a controversial problem in Italy where it was. prohibited in a referendum in 2011.

Speaking about China's supremacy in the production of solar. panels, electrical automobiles and other components required for the. energy shift, Scaroni stated he anticipated Europe would follow. the U.S. and enforce tariffs versus low-cost Asian items.

(source: Reuters)