Enel 2020–2022 strategic plan: decarbonisation and electrification

Enel’s strategic plan for 2020-2022 relies heavily on decarbonization and electrification, according to the company’s latest report.

Decarbonisation of the global generation fleet will account for 50% of total planned investments, with 14.4 billion euros devoted to the accelerated deployment of new renewable capacity and the progressive substitution of coal generation. By 2022, the Group is expected to develop 14.1 GW of new renewable capacity (+22% vs. previous plan) and reduce coal capacity and production by 61% and 74%, respectively, vs. 2018. The share of renewables on total capacity is due to reach 60% in three years, driving upwards the generation fleet’s profitability as well as increasing CO₂–free production to 68% in 2022. Enel’s investments in decarbonisation are expected to contribute 1.4 billion euros to Group’s EBITDA growth.

Around 1.2 billion euros of capex will address the Electrification of consumption, leveraging on Enel’s expanded and diversified retail customer base, as well as on efficiencies associated with the platformisation of Group activities. Investments are expected to yield 0.4 billion euros in EBITDA growth and position Enel for the future uptake of electrification-driven consumption.

A total of around 13 billion euros will be invested in the drivers of the energy transition, based on the two main trends of decarbonisation and electrification, and which offer several value creation opportunities.

Francesco Starace, CEO and General Manager of Enel said: “The plan that we are presenting today underscores the success of the sustainable and integrated business model that we have deployed since 2015, targeting the opportunities in the power sector connected with the global decarbonisation and electrification trends. Thanks to this approach, Enel is now a more sustainable, efficient and profitable organisation, with a substantially lower risk profile and a greater capability to rapidly adapt to change.

Enel’s 2020-2022 Plan is also based on the inherent sustainable business model that we have built, while working along the two global trends that are shaping the energy sector: decarbonisation and electrification. The digital transformation of our large network business and the platformisation of all our customer-related activities are key enablers of this plan, boosting efficiencies and introducing additional services.”