Milan is where some of the biggest developments in the energy industry make headlines and alter the trajectory of the energy sector in Italy. Case in point, most recently, Italian utility giant Enel (ENEI.MI) has reported a robust first-quarter performance, with core profit surging by 12% year-on-year. Behind these numbers stands a strong recovery in renewable energy production within Italy. Enel’s ordinary earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €6.1 billion ($6.6 billion), surpassing analysts’ expected estimation of €5.73 billion. From January to March, Italy contributed more than half of Enel’s ordinary EBITDA, with core profit in the country increasing to €3.2 billion from €1.9 billion the previous year. This domestic boost contrasts with the performance of Enel’s Spanish subsidiary, Endesa (ELE.MC), which experienced a decline due to falling electricity and gas prices in Iberia. Enel’s Italian operations benefited from a recovery in hydroelectric production and growth in its generation and trading business. The performance of the grids business also saw a marginal year-on-year improvement. The new management team, led by CEO Flavio Cattaneo, has been instrumental in driving these results. They initiated a cost-cutting plan last year, emphasizing investment in regulated assets like power grids and adopting a more selective approach to renewable energy projects. Enel’s focus on renewable energy is in line with broader trends in Milan and Italy's energy sector. The city has been at the forefront of the renewable energy revolution, supported by significant investments and government incentives. Milan is playing a crucial role in this transformation via the implementation of in various large-scale projects and the continuous growth of renewable energy sources like solar and wind power. The recovery in hydroelectric production is particularly noteworthy, given Italy's historical reliance on hydroelectricity. The sector, once the primary source of the country's electricity, continues to play a vital role alongside newer renewable sources.