Italian energy group Enel, acting through Rusenergosbyt, the Russian joint venture between Enel and Russia's ESN, sealed a strategic cooperation and partnership expansion on Wednesday with joint-stock company Russian Railways (RZhD), Enel said.
The expansion also represents an extension of the 2008 electricity supply contract between the two companies.
'Through the terms of this agreement, the two companies are now able to plan actions and investments over a long-term basis,' a statement read.
Enel owns 49.5 percent of Rusenergosbyt, one of Russia's largest energy suppliers and the sole operator powering the Russian Railways system.
According to the statement, Enel CEO and General Manager Francesco Starace and Russian Railways CEO Oleg Belozerov renewed the agreement with the aim of ensuring stable and reliable power supply for the Russian railway company. They also committed to significantly increasing energy efficiency in all segments of the transportation business by using renewable energy sources and implementing automation and digitalized systems.
In May 2018, Enel signed an agreement with RZhD for the development of an innovative energy storage system --'a first-of-its-kind battery technology for the railway sector'-- for installation across Russia’s railway network.
According to the press release, Enel has operated in Russia since 2004. The company holds 56.4 percent of Enel Russia, which runs four thermal power plants for a net installed capacity of 8.9 gigawatts.
In June 2017, Enel Russia was awarded two wind projects for a total installed capacity of 291 megawatts (MW). Enel’s renewables arm, Enel Green Power will carry out the construction of the two wind facilities, the first of which (90 MW) is located in the Rostov region and the second with 201 MW in Murmansk to be operational by 2020 and 2021, respectively.
In October 2017, Enel opened an Innovation Hub in Moscow's Skolkovo aimed at extending its global startup partnerships through contributions from Russian companies in innovation and sustainability projects.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr