Accelerating is essential. In recent months, Enel’s CEO Francesco Starace has reminded us on numerous occasions that we need to act now in order to ensure the survival of the Planet. This is because the goals we will be able to reach during the next decade in terms of the energy transition and decarbonization will make the difference. Enel has translated these words into concrete actions, as is evident in the 2022-2024 Strategic Plan which Starace presented at Capital Markets Day on November 24.
“As for direct and indirect emissions, we will reach the goal of net zero ten years earlier than indicated last year,” Starace pointed out, while announcing that by 2040 the electricity sold by Enel will be “produced entirely from renewable sources and, by the same year, the Group will withdraw from retail gas sales.” These ambitious goals are all the more necessary in order to bring about that “change of pace” which Enel is aiming for. In this way it can rapidly step up “from the previous Decade of Renewable Energy Discovery to the current Decade of Electrification.”
Over the last ten years, “renewables” have become the dominant trend in power generation, allowing decarbonization to proceed at “a faster pace.” The focus is now on 2030, the time horizon for the long-term plan presented by Starace: this the “Decade of Electrification” with “penetration into sectors where it wasn’t present before.” The path towards ‘Net Zero’ is underway worldwide and, as Starace reminded us, the decarbonization and electrification processes for the global economy are crucial in order to avoid the serious consequences of temperatures increasing by more than 1.5°C. It is no coincidence that “the most recently published scenarios agree that reaching ambitious climate targets requires an acceleration in the electrification of energy consumption, together with a massive deployment of zero-emission energy.” As Starace made clear, “customers will be both the active drivers and the main beneficiaries of this process.”
“This year’s Plan, with 170 billion euros of direct investments by 2030, marks a turning point. Furthermore, by reaching ‘Net Zero’ by 2040, we are bringing forward the Group’s full decarbonization target by ten years”
Francesco Starace, Enel CEO
Enel’s road map for 2030 is in the 2022-2024 Strategic Plan: around 45 billion euros of total investment – representing a 12% increase compared to the previous Plan – with a further 8 billion euros from third parties through the Stewardship business model. Enel plans to mobilize total investments of 210 billion euros between 2021 and 2030, of which 170 billion euros will be invested directly by the Group (+6% with respect to the previous Plan) and 40 billion euros will be catalyzed through third parties. The aim is to power investments towards zero emissions, with a focus on the electrification of customers’ energy demand: “We are accelerating growth across all business areas, bringing value to our customers, who are at the core of the Group’s strategy. This value translates into a projected reduction in their energy spending, while increasing their electricity demand by 2030.”
As Starace said, the Plan marks a “turning point”: “The pioneering work carried out by all Enel colleagues and the advanced digital transformation of the Group will enable us to meet customers’ evolving needs during this decade.” Furthermore, “a very solid context allows us to create value for shareholders,” paving the way for Enel’s dividend policy to remain “simple, predictable and attractive.” The fixed and guaranteed dividend is expected to reach 0.38 euros/share in 2021, 0.40 in 2022, and 0.43 in 2023 and 2024. Over the period of the plan, dividends may be subject to revision (upward or downward), while offering a total return of 13% that “breaks with the past and provides certainty.”
Enel editorial staff