Enel committing to increase investment in networks and green energy

Enel will reinforce its focus on markets where it has an integrated presence, such as Italy, Spain, Chile, and Brazil

Italian energy group Enel made upward revisions for its gross operating income targets and has committed to increase investments in networks and clean energy businesses, as part of the company’s new business plan.


The largest utility in Europe, owner of Spanish company Endesa and with a growing presence in Latin America, stated it plans to invest about €27.5 billion in this area up to 2021; up by 12 percent from the previous plan, earmarking over 40 percent for renewable assets.

This Italian state-controlled group stated that nearly 62 percent of its production will be emissions-free by 2021, compared with 48 percent this year.

The electricity sector is committing to renewable energies

The European electricity sector is undergoing significant changes in a scenario of technological advances and political commitment to meet all the goals to combat climate change.

In particular, the company explained it wants to incorporate 11,600 megawatts (MW) of new renewable capacity over the next three years and reduce thermal generation capacity by 7,000 MW.

“Enel will reinforce its focus on markets where it has an integrated presence, such as Italy, Spain, Chile, and Brazil,” the company stated.

Enel is also hoping to increase the EBITDA by 6 percent in order to reach €17.4 billion next year, up from the €17.2 billion in the previous business plan.

On the other hand, it confirmed that it plans to earmark 70 percent of its net ordinary profits for dividends. However, the company also established a minimum dividend per share, set to be €0.36 by 2021, compared with the €0.28 foreseen for 2018.

Endesa will also update its strategic plan on Wednesday. Its Italian parent company said that the Spanish utility is planning to invest a total of €5.5 billion this year; Meanwhile, other provisions include increasing the EBITDA to €11.2 billion over the next three years: €3.6 billion in 2019, €3.7 billion in 2020, and €3.9 billion in 2021.

Broker CM Capital Markets said in a report for clients that the provisions for the EBITDA “are in line with the provisions for a consensus for this year, 2019, and 2020.”

Decarbonization in Spain

The Italian firm foresees that gross investment on renewable energy will amount to €11.5 billion, of which €1.7 billion will go to the Iberian peninsula.

“Renewables is increasingly a customers’ choice, and we are able to offer that thanks to the development of a wide network and through digitalization,” Enel CEO Francisco Starace said.

According to data provided by the company, the group’s zero emissions energy capacity is set to reach 45 percent. Furthermore, it is estimated to reach 62 percent by 2021.

Renewable capacity is expected to grow to 11.6 GW generating a total incremental EBITDA by €1 billion. The rest of the investments are divided in the following manner: 40 percent to networks; 5 percent in retail, 4 percent in Enel’s sustainable growth, and the remaining 9 percent in thermoelectric generation.

“A sound industrial growth and the efficiency programmes implemented so far have enabled us to progressively increase our ordinary EBITDA to 16.2 billion euros by end 2018, a level we committed to reach back in 2015 and that we constantly confirmed,” Starace stated.

For more information, check Energía16

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