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Enel, the 2021-2023 Strategic Plan

Starace: investments of 190 billion euros over the next 10 years
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For Enel, accelerating the energy transition is more than just a commitment, it is key to sustainable and profitable growth that will bring “significant value shared with all stakeholders, as well as attractive returns for shareholders over time”. This is confirmed by the 2021-2023 Strategic Plan, which was presented by CEO and General manager Francesco Starace at Capital Markets Day 2020. During the event, which took place on 24 November 2020, the CEO also presented a 10-year vision to 2030, a period in which Enel expects to mobilise investments of 190 billion euros to boost decarbonisation, electrification of consumption and platformisation.

 

We aim to become a leader in renewables with a global presence. We intend to further strengthen our leadership by tripling our total capacity from renewable sources, which currently boasts 49 GW of total capacity at a global level”, said the Enel CEO. He also pointed out that these investments aim “to reach an annual installed capacity that is equivalent to a global market share of over 4% in 2030, from the current 2.5%”. That increase would be “impressive”, but “there is plenty of room for growth”.

 

With a vision to 2030, the 2021-2023 Strategic Plan includes investments of around 40 billion euros, of which 38 billion through the Ownership business model and around 2 billion through the Stewardship business model, while further mobilising 8 billion euros from third parties. Compared with the previous Strategic Plan, the growth rate in investments is expected to be around 36%. At Group level, ordinary EBITDA is expected to be in a range between 20.7 and 21.3 billion euros in 2023, with a 5%-6% compound annual growth rate (CAGR). Net ordinary income is expected to be in a range between 6.5 and 6.7 billion euros, with an 8%-10% CAGR. Enel has developed a “simple, predictable and attractive” dividend policy for the period 2021-2023: shareholders will receive a fixed, guaranteed and increasing dividend per share over the next three years, which will reach 0.43 euros/share in 2023 (a compound annual growth rate of approximately 7%).

Throughout the next decade, we will strengthen the creation of sustainable shared value for all stakeholders. This also includes an attractive remuneration for our shareholders

Francesco Starace, Enel CEO

These numbers launch the Group into a decade that is “full of opportunities”, as Starace highlighted. Enel plans to invest 160 billion euros directly – of which over 150 billion through the Ownership business model and around 10 billion through the Stewardship business model – while further mobilising 30 billion euros from third parties. Regarding decarbonisation, as the Enel CEO mentioned recently, the Group plans to reach an 80% reduction in direct CO2 emissions compared with 2017 levels, a target certified by the SBTi (Science-Based Targets initiative). Furthermore, Enel aims to contribute to the creation of over 240 billion euros of GDP in countries where it is present, deriving from local investments in generation and electrification.

 

To realise this vision, we can leverage on our clear leadership in the utility industry across three main elements, which are all driven by an innovative platform-based model”, said Starace. “First, as a super major in the renewable sector, we operate the world’s largest private generation fleet. In addition, we have an unparalleled global network system which, thanks to our platform-based operating model, drives improvements in quality, resiliency, efficiency and flexibility. Last but not least, we can count on the largest customer base worldwide to which, through our business platforms, we provide innovative services and integrated offerings”. Throughout the next decade, “we will strengthen the creation of sustainable shared value for all stakeholders. This also includes an attractive remuneration for our shareholders”, the Enel CEO and General Manager concluded.

Enel editorial staff