Enel has unveiled its strategic plan for the next three years. The plan calls for considerable investment, but with a more selective focus on renewable energies. Of the 35.8 billion euros of investment planned, 18.6 billion will be allocated to network improvements, 12.1 billion to renewable energies and 3 billion to customer management.
Focus on onshore wind power, solar power and battery storage
In the field of renewable energies, Enel has decided to adopt a more selective approach, focusing on sources such asonshore wind, solar and battery storage. This decision marks a change from the previous plan, which earmarked 17 billion euros for renewable energies. Enel’s new CEO, Flavio Cattaneo, appointed under the current Italian government, explained that this approach aims to maximize profitability while minimizing risk. In Europe, Enel will focus on Italy, Spain, the United States, Brazil, Chile and Colombia.
New CEO, Flavio Cattaneo, and his strategic vision
Under the leadership of former CEO Francesco Starace, Enel was a pioneer in the transition to renewable energies. Currently, almost 60% of its energy production comes from renewable sources, while thermal and nuclear power account for 28.4% and 12.2% respectively. Enel aims to increase its renewable energy capacity to around 73 gigawatts by 2026, compared with 63 gigawatts planned for this year.
Enel’s financial targets for 2026 In terms of financial forecasts
As far as debt is concerned, Enel had planned asset disposals worth 21 billion euros in its previous plan. The implementation of these disposals should have a positive impact on net debt, which should increase to around 11.5 billion euros between 2023 and 2024, according to Enel. The company also signed an agreement with Niagara Energy for the sale of its interests in two Peruvian subsidiaries, for 1.3 billion euros.
In terms of financial forecasts, Enel is targeting net profit excluding exceptional items of between 7.1 and 7.3 billion euros in 2026, with an average annual growth rate of 6%. The forecast for 2023 is 6.4 to 6.7 billion euros. Ebitda excluding exceptional items should reach €23.6 to €24.3 billion in 2026, after expectations of €21.5 to €22.5 billion in 2023.
Enel announces an ambitious investment plan for the next three years, with a selective approach to renewable energies. The new CEO, Flavio Cattaneo, aims to maximize profitability while minimizing risk, by focusing on key markets. The transition to renewable energies remains a priority, but with particular emphasis on certain sources. The company also aims to reduce its debt through strategic asset disposals. Enel’s future looks set to be both ambitious and cautious.
