Italy’s largest power company Enel SpA has gained a foothold in the Chinese market by signing a memorandum of understanding with state-owned electric utility State Grid Corporation of China to cooperate in areas of smart grid and renewables.
The agreement between Enel and the largest state-owned electric utility in the world involves cooperation on technologies that allow for sustainable urban development as well as sharing best practice in the generation of renewable energy, Enel said in a statement.
Fulvio Conti, chief executive officer of Enel, also met with power generator China Huaneng to consolidate relations between the two companies.
A framework agreement is expected in the first half of this year to agree co-operation in technology, carbon strategy and power sector investments, Enel said in the same statement.
Enel’s activity in China represents a move by the utility to grow technology exports.
The Rome-based energy giant has been active in China since 2004 with a series of projects to reduce greenhouse-gas emissions.
In March 2014, the People’s Bank of China bought stakes of around 2 percent in Italian state-owned energy companies Eni and Enel, according to Reuters.
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