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Enel: Starace presents the 2020-2022 Plan

The Plan presented by Starace is focused on sustainable development
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Enel Group originally decided to develop a sustainable and integrated business model in order to seize the opportunities offered by the global trend towards decarbonisation and electrification. This approach was strongly supported by the Group’s CEO Francesco Starace and in recent years it enabled Enel to become “a more sustainable, efficient and profitable organisation, with a substantially lower risk profile and a greater capability to rapidly adapt to change.” These developments mean that the Group can face increasingly ambitious challenges, such as those outlined in the 2020-2022 Plan, which was presented in Milan on 26 November.

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 offered by the global trend towards decarbonisation and electrification

Francesco Starace, Enel CEO

“The energy transition is ready to take off,” Starace announced, and the Group is ready to further support its acceleration by means of greater investments (up 11% with respect to the previous plan), with a view to pursuing the UN’s Sustainable Development Goals (SDGs). 28.7 billion euros of total investment: 14.4 billion for decarbonisation, 13 billion for network infrastructure and platforms, and 1.2 billion designated to encouraging the electrification of consumption. As Francesco Starace said, 2019 marked a turning point for the dynamics of transformation within the world’s energy systems, and an acceleration of the trend towards decarbonisation and electrification is expected in the years to come. Enel’s Strategic Plan aims to “accelerate the decarbonisation of its generation mix through significant investments in renewable growth, while progressively reducing thermal generation.” If the company is on the path towards full decarbonisation by 2050, then these projects provide visibility well beyond the 2020-2022 period.

 

Not only that, “We are future-proofing our networks and customer processes through investments in grid digitalisation, as well as the progressive transformation of Enel into a platform-based Group.” With these strategies, the CEO went on to explain, Enel ensures uniformity of customer management processes, as well as those relating to resource allocation, asset operation and maintenance. This is essential in “embracing the electrification of consumption, boosting action against climate change and ensuring the supply of affordable, clean energy.” These objectives are a priority, as is evident in Enel’s commitment to sustainability. Examples include renewables, decarbonisation and electric mobility. The latter is a particularly interesting area for the Group which, not surprisingly, plans to install 736,000 charging points by the end of 2022, compared to the current figure of 82,000. But sustainability in the Group’s vision is also “a key enabling factor in its financial strategy.” During the 2020-2022 period and beyond, Enel “will increasingly leverage on Sustainable Finance instruments such as SDG-linked bonds, whose cost advantages over traditional tools will further support the improvement of our already strong credit metrics.”

 

The robustness of this Strategic Plan and the associated significant earnings visibility enabled the CEO to confirm the Group’s net ordinary income target for 2020 and to increase the 2021 target with respect to the previous plan. EBITDA and net ordinary income targets for 2022 were also improved. In conclusion, Francesco Starace said: “Likewise, we can confirm our three-year minimum DPS policy, revising upwards our minimum DPS targets for both 2020 and 2021 with respect to last year’s plan and setting a rising new minimum DPS at 40 eurocents in 2022.”

 

 

Enel editorial staff