Enel Green Power stock hails Obama re-election

Nov 7, 2012 - Italy's Enel Green Power SpA (BIT:EGPW) topped Milan's blue-chip gainers list on Wednesday afternoon, following the re-election of Barack Obama who was the White House candidate supporting green economy unlike Mitt Romney who had rooted for oil drilling.
According to brokerage Equita, Obama's win in the US presidential election would be a positive catalyst for Enel's (BIT:ENEL) renewable energy arm which could benefit from possible extension of the incentives in the USA after 2012.
The US Renewable Electricity Production Tax Credit (PTC) policy expires on December 31, 2012 but in August this year the US Senate Finance Committee passed a bill that includes a one-year extension for offshore wind and wind production tax credits.
Enel Green Power's current strategy does not entail further development beyond 2012 but Equita believes that in case the incentives are extended, the Italian group will have potential investments for another 400 MW installed capacity in the next three years. Therefore, the broker kept its "buy" recommendation on Enel Green Power with a price target at EUR 1.83.
Enel Green Power North America (EGP-NA), part of Enel Green Power, has projects operating and under development in 21 US states. EGP-NA manages 88 plants with a combined installed capacity of 1,113 MW, including 727 MW of wind power, 313 MW in hydropower, 47 MW in geothermal energy and 26 MW in solar power.
At 1420 CET on Wednesday Enel Green Power's stock was up 0.78% to EUR 1.30 amid predominantly losing stocks on the Milan market.

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