Enel announces €43 billion in investments and a dividend increase

The energy giant Enel has unveiled an ambitious strategic plan for the 2025–2027 period, with an investment package totaling €43 billion. This plan focuses on improving networks, renewable energies, and customer management. Of these investments, €26 billion will be allocated to electrical infrastructure, a key sector recently impacted by adverse weather conditions, while €12 billion will be directed towards renewable energy development. Additionally, €2.7 billion will aim to enhance customer management.

The plan includes a 40% increase in network investments compared to the previous plan, while the funds allocated to renewable energies remain stable. This direction underscores a prudent yet targeted strategy centered on regulated assets offering predictable returns, according to CEO Flavio Cattaneo.

Renewable energy growth objectives

Enel plans to increase its renewable energy capacity to 76 gigawatts (GW) by 2027, representing a growth of 12 GW compared to its current capacity. This expansion is expected to boost renewable energy production by 15% over the period. In 2024, renewable energies already account for nearly 70% of Enel’s total production, followed by thermal energy (17.6%) and nuclear energy (13.1%).

The group’s Spanish subsidiary, Endesa, also reinforced this momentum by acquiring hydroelectric assets from Acciona for €1 billion, adding 626 megawatts (MW) to its installed capacity.

Increased dividends and financial strategy

To meet shareholder expectations, Enel has raised its dividend policy. The group now commits to distributing a minimum of €0.46 per share, up from €0.43 in the previous plan. This decision reflects a commitment to maximizing financial returns for investors while maintaining a selective and flexible investment strategy.

Despite a decline in electricity prices, Enel recorded a 38% increase in net profit, reaching €5.9 billion during the first nine months of 2024. By 2027, the group aims to achieve a net profit, excluding exceptional items, of between €7.1 billion and €7.5 billion, with an operational profit (EBITDA) ranging between €24.1 billion and €24.5 billion.

Asset optimization and debt reduction

In a bid to reduce its debt, Enel has finalized its asset disposal program initially planned for 2025, achieving a total of €21 billion by the end of 2024. This strategy lightens the group’s financial structure while allowing it to focus resources on high-value projects.

CEO Flavio Cattaneo also emphasized the priority given to profitable investments: “I invest to make money. If I cannot find a profitable investment, I will return the funds to shareholders.”