CEO of One of World's Largest Electric Companies on Being a Renewable Energy "Supermajor"
The CEO of Enel-one of the world's largest electric power companies-discusses what it means to be a renewable energy and renewable power "supermajor" in the latest edition of CERAWeek Conversations.
In a conversation with Daniel Yergin, vice chairman, IHS Markit (NYSE: INFO), Enel CEO Francesco Starace talks about decarbonizing electricity grids through large-scale renewable investments; the "less-obvious" role that improved materials play alongside digital advances; and financial innovations in the sustainable development bond market.
Starace also shares his thoughts on the momentum for energy transition and the European Union's "Fit for 55" emissions reduction target, which he believes is achievable. "It's not a big deal. It would be best for Europe," he says.
He also discusses his outlook for hydrogen; "hand-in-hand" collaborations with electric vehicle manufacturers; and his thoughts on traditional oil and gas companies entering the renewable power generation space.
"[Oil and gas companies] are much better to have as competitors rather than the wild bunch that we have today," he says. Today we have all developers. Anyone who wants to build a project and sell it can do that. They don't really care about returns or dividends over 20-30 years.
"They just want to build and sell," he continues. "A utility has a different view. And an oil and gas company has more discipline and value to shareholders that they need to [maintain]. It would be much better for the sector if the expanding space would be filled by rational, experienced players rather than another bunch of cowboys that we've had so far."
"A growing shortage of people," he observes, is "the bottleneck of the industry today."
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