The Enel Group has delivered its investment plan corresponding to the period 2025-2027 through which it plans to make a major injection of resources of 43,000 million euros. This represents an increase of 7,000 million euros compared to the previous plan.
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Disaggregating these resources, 26,000 million euros will be delivered in networks, which is 40% compared to the same time last year, and approximately 78% go to Italy and Spain to support investments in those countries.
Another 22% will be delivered to its headquarters in Latin America, within the approximately 12,000 million euros dedicated to renewable energy.
“To add about 12GW of capacity, with an improved technology mix that predicts more than 70% of onshore and manageable wind (hydroelectric and batteries), up to a total capacity of about 76 GW,” Enel showed.
In the production segment, an increase of 15% is expected by 2027, equivalent to 2,700 million euros in customers, of which approximately 85% will be directed to countries where Enel Group has an integrated presence, to grant solutions. with energy, products and services.
The Group intends to allocate investments proportionately between its main geographies, based on their contributions to Ebitda with approximately 75% in Europe, as well as approximately 25% in Latin America and North America.
In 2027, the Group’s normal Ebitda is expected to grow to between €24.1 billion and €24.5 billion. The Group’s Net Income is expected to increase to between €7.1 billion and €7.5 billion.
“Between 2025 and 2027, we will focus on core activities and flexible capital allocation, increasing investments mainly in controlled assets with predictable returns that will also support the acceleration of the energy transition. In addition, we will continue to improve efficiency and profitability, including through new business opportunities. This strategy allows us to revise the dividend policy upwards throughout the Plan with a fixed minimum dividend of 0.46 euros per share, increasing from the 0.43 euros set in the previous Plan year and with the potential additional benefit of up to a payout of 70% of. Ordinary Net Income”said Flavio Cattaneo, CEO of Enel.
This three-year strategic plan is focused on three pillars: the first is focused on profitability, flexibility and resilience to generate value through selective capital allocation that maximizes the risk/return profile while maintaining a flexible approach .
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The second is efficiency and effectiveness with continuous optimization of processes, activities and portfolio of offers, strengthening cash generation and developing innovative solutions to improve the value of existing assets and financial and environmental sustainability for a solid structure maintaining, ensuring the flexibility needed for growth and doing address the challenges posed by climate change.
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Enel Colombia
More about the investment plan
In the Ebitda segment, the Enel Group expects it to be more than 70,000 million euros, which is equal to about 90%, resulting in about 64,000 million euros from control activities, contract, reducing risks for the visibility of the results in the improve future.
After that, the Group expects to allocate around 27,000 million euros to networks; around €4 billion related to energy generation covered by long-term regulatory schemes; approx 23,000 million euros corresponding to Power Purchase Agreements (PPA)mainly in Latin America and North America and about 10,000 million euros corresponding to end users with volumes sold at fixed prices.
In 2027, the Group intends to achieve efficiencies of around 1,500 million euros compared to the base case of 2022. The objective to increase around 1,500 million 500 million euros in relation to the previous plan, continue the process of optimizing and internalizing external activities.
LADY RUIZ
Portfolio Journalist
How will Enel’s investment plan impact renewable energy initiatives in Latin America?
Interview Between Time.news Editor and Enel Group Expert
Editor: Hello and welcome to Time.news. Today, we’re delving into a significant development in the energy sector with an expert from Enel Group. They’ve just announced an ambitious investment plan for 2025-2027, amounting to 43 billion euros. Joining us is Dr. Lucia Martinez, a senior analyst at Enel. Welcome, Dr. Martinez!
Dr. Martinez: Thank you for having me! I’m excited to discuss our new investment plan and what it means for the future of energy.
Editor: Let’s start with the figures. This plan represents a 7 billion euro increase compared to the previous one. Can you elaborate on the reasons behind this substantial hike in investment?
Dr. Martinez: Absolutely. The energy landscape is rapidly evolving, particularly with the accelerating demand for renewable energy and the urgent need to tackle climate change. This increased investment is a response to that demand. We aim to deliver sustainable and resilient energy systems, focusing particularly on our core markets in Italy and Spain, which will receive about 78% of our investments in networks.
Editor: That’s a significant portion. Speaking of networks, you mentioned that 26 billion euros will be allocated here—what specific improvements are planned for the network infrastructure?
Dr. Martinez: Great question! This funding will enhance our current network capabilities and expand our infrastructure. We are focusing on harnessing smart technologies and optimizing grid operations. By investing in upgrades, we can ensure a reliable energy supply while facilitating the integration of more renewable energy sources like wind and solar. This is crucial for achieving our climate goals.
Editor: Now turning to Latin America, where about 22% of the resources are directed. What can we expect from this investment in terms of renewable initiatives?
Dr. Martinez: Our commitment in Latin America is profound. With approximately 12 billion euros dedicated to renewable energy, we’re looking to add about 12 gigawatts of capacity. Our strategy includes enhancing onshore wind capabilities, alongside hydroelectric and battery storage solutions. This diverse energy mix not only supports local communities but also strengthens the overall energy transition in the region.
Editor: Let’s discuss profitability as part of this plan. CEO Flavio Cattaneo mentioned an expected increase in normal EBITDA to between 24.1 and 24.5 billion euros by 2027. How will these investments drive profitability?
Dr. Martinez: The investments are strategically focused on core activities with predictable returns. By optimizing our operations and enhancing our asset portfolio, we expect to generate more effective cash flow and, consequently, improved profitability. Our new business opportunities also align with energy transition goals and will be pivotal for maintaining our growth trajectory.
Editor: That sounds promising. You also mentioned a focus on efficiency and effectiveness. How does Enel plan to ensure continuous optimization amidst these investments?
Dr. Martinez: Efficiency is indeed a cornerstone of our strategy. We are implementing advanced technologies and methodologies that streamline processes and enhance operational performance. Continuous improvement will be central to our offering portfolio, allowing us to not only respond to market changes but also to innovate in terms of sustainability and customer service.
Editor: Climate change is a pressing challenge. In what ways does this investment plan specifically address those environmental challenges?
Dr. Martinez: We are committed to contributing positively to the environment, and our plan is designed with sustainability at its core. By increasing our renewable energy production and improving the efficiency of our operations, we are reducing carbon emissions and supporting the transition to a greener economy. We strive for financial performance that aligns with environmental stewardship.
Editor: could you elaborate on the potential benefits for shareholders, especially in light of the revised dividend policy mentioned?
Dr. Martinez: Certainly! The upward revision of our dividend policy reflects our confidence in generating consistent cash flows. By setting a minimum dividend of 0.46 euros per share, alongside the potential for a payout of up to 70% of ordinary net income, we aim to ensure that our shareholders benefit directly from our strategic growth and profitability.
Editor: Thank you, Dr. Martinez, for those insightful details. It’s clear that Enel is positioning itself not just as a leader in energy provision, but also as a key player in the global effort against climate change.
Dr. Martinez: Thank you for the opportunity to share our vision. We are looking forward to the exciting future ahead!
Editor: And thank you to our audience for tuning in. Stay tuned for more updates on the energy sector as we continue to cover transformative developments like these.