The diverging fortunes of Italian utility Enel, and Dutch project developer Econcern, demonstrate that it’s a good time to be a utility, New Energy Finance, points out in a newsletter today.
The shifting tide in the public markets is saving Enel, while the tight fisted private financing markets are putting the knife in Econocern’s business. Econocern went bust last week. Enel has a $11.3 billion rights offering on its plate.
Econcern was sunk after pursing too many projects simultaneously, many capital eaters, according to New Energy’s sources. Without an ability to raise new money for the different projects, Econcern couldn’t keep all the plates spinning, so to speak.
Enel is pursuing a similar strategy, but its been able to raise a ton of money. In the short run, the capital eaters will sting, but in the long run it will be better off. It’s even talking about spinning out its green focused energy program into its own public company.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.