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Francesco Starace: Enel’s 2023-2025 Strategic Plan

Francesco Starace spoke about the future of Enel at Capital Markets Day 2022

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Sustainable commitment will continue to provide the foundation for Enel’s strategy: the Group’s CEO Francesco Starace confirmed this at Capital Markets Day 2022 on November 22. Enel’s 2023-2025 Strategic Plan, which was presented during the event, also confirmed that sustainability will continue to be “fully integrated in all our decisions” – in the words of the CEO – with a focus on the energy transition, decarbonization and digitalization. The aim is to reach the net-zero target by 2040, ten years earlier than previously planned.

However, it is also impossible not to look at the current difficult context in which strategies and goals are being pursued. According to Starace, the pandemic, the energy crisis, the geopolitical conflicts and the effects of climate change require an accelerated energy transition and digitalization process, not to mention the reorganization of global supply chains. The 2023-2025 Strategic Plan starts from this. With it, Enel expects to concentrate on an increasingly integrated industrial supply chain pursuing sustainable electrification, which is increasingly necessary for global energy systems. The aim is therefore to cover approximately 90% of Enel’s fixed price sales with carbon-free electricity in 2025, to bring renewable generation to around 75% of the total and to reach around 80% of digitalized grid customers.

“Sustainability, which is fully integrated in all our decisions, continues to provide the foundation for our strategy, while also leveraging the acceleration of electrification across all economies”

- Francesco Starace, Enel CEO

Over the next three years, “we will focus on integrated business models and digital know-how,” as well as on strategically repositioning businesses and geographies “that can add value despite the current challenging scenario, embracing a leaner structure and a more robust set of financial ratios.” As Starace explained, the goal is to increase “our resilience to potential and continued turbulence in the future, in addition to positioning our value creation toward further growth, thereby benefiting all our stakeholders and accelerating energy independence in our core countries.” In this perspective, between 2023 and 2025, a total of around 37 billion euros will be invested, of which 60% will support the Group’s integrated commercial strategy (generation, customers and services) and 40% will be allocated to grids in their role as enablers of the energy transition.

Enel will therefore look in four main directions over the next three years: balancing customers’ supply and demand in order to optimize the risk/return profile; decarbonization to ensure competitiveness, sustainability and security; reinforcing, growing and digitalizing networks to enable the transition; and finally, streamlining the portfolio of businesses and geographies. These results will be achievable thanks to “the highly skilled and motivated colleagues at the Enel Group and the digital platform organizational structure we have set up,” Starace said. Enel’s commitment to sustainability will continue to be essential: the Group will endeavor to “leverage the acceleration of electrification across all economies.

 

Enel editorial staff