The genuine physical reasons explaining the delocalization effect of the Hubbard repulsion U are analyzed. First, it is shown that always when this effect is observed, U acts on the background of a macroscopic degeneracy present in a multiband type of system. After this step, I demonstrate that acting in such conditions, by strongly diminishing the double occupancy, U spreads out the contributions in the ground state wave function, hence strongly increases the one-particle localization length, and consequently extends the oneparticle behavior producing conditions for a delocalization effect. To be valuable, the reported results are presented in exact terms, being based on the first exact ground states deduced at half-filling in two dimensions for a prototype two band system, which is the generic periodic Anderson model at finite value of the interaction.