Enel: Power, Russia, and Global Markets

Posted: 19 Nov 2009

See all articles by Rawi Abdelal

Rawi Abdelal

Harvard University - Business, Government and the International Economy Unit

Richard Vietor

Harvard University - Business, Government and the International Economy Unit

Sogomon Tarontsi

Harvard Business School

Date Written: May 22, 2009

Abstract

Although the global trend toward liberalization of electric utilities forced Enel, the largest power company in Italy, to give up some of its assets in its home base, it also opened up many opportunities abroad, including in Russia, one of the largest electricity markets in the world. The case outlines Enel's internationalization strategy and then focuses on one piece of the company's strategic puzzle of global expansion: acquisition of major power-generation assets in the course of the break-up of RAO UES, the Russian electricity monopoly. The case highlights the decision-making process by the company executives in the context of possible political risks to foreign investment in Russian strategic industries and economic risks to investment in the yet-to-be-formed liberalized and deregulated electricity market in Russia.

Suggested Citation

Abdelal, Rawi and Vietor, Richard H. K. and Tarontsi, Sogomon, Enel: Power, Russia, and Global Markets (May 22, 2009). HBS Case No. 709-046, Harvard Business School BGIE Unit, Available at SSRN: https://ssrn.com/abstract=1508676

Rawi Abdelal (Contact Author)

Harvard University - Business, Government and the International Economy Unit ( email )

Morgan Hall 287
Harvard Business School
Boston, MA 02163
United States

Richard H. K. Vietor

Harvard University - Business, Government and the International Economy Unit ( email )

Cambridge, MA
United States
617-495-6460 (Phone)

Sogomon Tarontsi

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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