The Enel Group expects to mobilize investments for a total of 210 billion euros between 2021 and 2030, of which 170 billion invested directly by the group (+ 6% compared to the previous plan) and 40 billion euros catalysed by third parties. The company announces this by presenting the 2022-2024 Strategic Plan to the financial markets and the media on Wednesday morning and its strategic vision to 2030. The energy giant also anticipates its “Net Zero” commitment by 10 years, from 2050 to 2040, for both direct and indirect emissions.
Exit from coal in 2027, from gas in 2040
Among the most significant innovations announced yesterday was the acceleration of the decarbonization process: Enel plans to abandon coal generation by 2027 and gas generation by 2040, replacing the thermoelectric portfolio with new renewable capacity as well as making use of hybridization of renewables with storage solutions, which by 2030 will contribute to the supply of energy for 9 gigawatts compared to an installed capacity of renewables that in 2030 will exceed 150 gigawatts. In 2024 the installed capacity of renewables will rise from 54 gigawatts at the end of 2021 to 77 gigawatts. For Enel, decarbonisation does not mean offsetting C02 emissions with other green initiatives, a mechanism that underlies the “net zero” concept. “Net is a dangerous word,” observed CEO Francesco Starace to underline the group’s strategy that aims to cut emissions tout court without hiding behind greenwashing operations.
Focus on customers: their energy spend reduced by 40%
The electricity group does not openly discover the new reorganization project, which will lead to the spin-off of EnelX’s electric mobility activities to concentrate them in an ad hoc company that will be led by the former CEO of Open Fiber, Elisabetta Ripa. However, it confirms the creation of a business unit focused on customers on a global level, the Global customers. The path moves towards an increasingly integrated offer of services and electricity, with the aim of reducing customer spending by 40 percent by 2030, also relying more and more on electricity produced by the group and less trading. (whose contraction during the pandemic caused the erosion of 15 billion of the group’s revenues).
The dividend policy
The group ‘s Ebitda is expected to rise 21 / 21.6 billion in 2024 compared to 18.7 / 19.3 billion expected at the end of 2021 (5.4-5.6 billion net profit expected at the end of the year). Dividends will grow at a rate of 13% per year to go from € 0.38 to € 0.43 in 2024. Net debt will stand at around € 60 billion in 2024.
Starace, the new Plan is a turning point
“This year’s Plan, with 170 billion euros of direct investments by 2030, represents a turning point. Its implementation allows us to advance from the previous decade of the discovery of renewable energy to the current decade of Electrification “. This was stated by Enel CEO Francesco Starace. “We are accelerating growth in all business areas, creating value for our customers, who are at the heart of the Group’s strategy, which translates into the expected reduction in their energy costs, while increasing their demand for electricity by 2030 “.