Does Winning Chile’s 2027–2030 Power Tender Change The Bull Case For Enel (BIT:ENEL)?

• In recent days, Chile’s Comision Nacional de Energia awarded Enel Generacion the entire 3.36 TWh per year offered in its 2025/01 power tender at a fixed price of US$64.50/MWh for regulated supply between 2027 and 2030.
• This win secures a sizeable, long-term contracted revenue stream in a key regulated market, underscoring Enel’s ability to compete effectively for baseload demand.
• Next, we’ll examine how locking in this large Chilean PPA could shape Enel’s investment narrative around earnings visibility and risk.

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Enel Investment Narrative Recap

To own Enel, you need to believe in a large, regulated and increasingly renewable utility that values earnings visibility and disciplined capital returns. The Chilean 3.36 TWh PPA win adds contracted cash flow in Latin America but does not materially change the near term focus on European regulation as the key catalyst, or FX and political risk in core markets as the main overhangs.

Among recent developments, Fitch’s affirmation of Enel Generacion Chile at BBB+ with a stable outlook ties directly into this new Chilean contract by highlighting the role of long term PPAs in supporting cash flow and leverage. Together, the rating stance and the new tender award reinforce the group’s effort to smooth earnings and reduce reliance on spot prices, even as Latin American FX volatility and regulatory complexity remain important variables to monitor.

Yet behind this added earnings visibility in Chile, investors should be aware that concentrated regulatory risk in core European networks could still...

Read the full narrative on Enel (it's free!)

Enel's narrative projects €88.5 billion revenue and €7.1 billion earnings by 2028.

Uncover how Enel's forecasts yield a €9.02 fair value, in line with its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community span roughly €3.38 to €9.63 per share, showing how far apart individual views can sit. Against this backdrop, the new long term Chilean PPA and Enel’s push to secure more contracted cash flows speak directly to concerns about earnings predictability and regulatory or FX risks that could influence how you judge those valuations.

Explore 13 other fair value estimates on Enel - why the stock might be worth as much as 9% more than the current price!

Build Your Own Enel Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Enel research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Enel research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Enel's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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