2030 is approaching and Enel is playing in advance to achieve the new decarbonization objectives set by Europe and focus on the electrification of consumption. The electric group presented the new 2022-2024 business plan in Milan with which it faces the next, decisive, ten years of energy transition.
The commitment is of bring forward the zero emissions target to 2040 up to now forecast for 2050 with a 6% increase in investments compared to the previous plan. Let's talk about 170 billion invested directly to which others are added 40 billion for projects co-financed by third parties. The investment drive is aimed at tripling renewable capacity to 129 Gigawatts (+89 GW compared to today) by 2030, at a consolidated group level. The exit from coal is set for 2027 and from gas by 2040.
Here are the new financial goals at the end of the plan:
- theGroup ordinary EBITDA and ordinary net income growing, the former at 21,0-21,6 billion euros (compared to an estimated 18,7-19,3 billion euros in 2021); the second at 6,7-6,9 billion compared to the previous estimate of 5,4-5,6 billion.
- the remuneration for shareholders continues along the lines outlined with a fixed dividend per share expected to grow by 13% from 2021 to 2024, reaching €0,43/share compared to €0,358 paid in 2021 with a payout of 70%. This will allow for a dividend yield up 13% over the period.
Going back to the distribution of investments, they will be divided in half: 70 billion destined to increase renewable capacity, another 70 billion will be spent on the grid and infrastructure, which will make it possible to bring the RAB(Regulatory Asset Base) to 65 billion euros in 2030.
The focus of the new plan presented by CEO Francesco Starace and CFO Alberto De Paoli pushes the accelerator onelectrification of consumption with an 80% increase in revenues compared to 2021; substantially unchanged rates for the customers; a 40% drop in the cost of energy sold compared to 2021. Over the next few years, the group expects revenue from customers increase by 26% and the electricity sales grow by 25%.
"This will be accompanied - specifies the note released by Enel - by a decrease of about 15% in the total cost of energy sold compared to 2021, which is also the result of a reduction of about 23% in the average production cost". For consumers, Enel intends to guarantee an 80% reduction in its carbon footprint in 2030 and a 40% reduction in energy costs by the same date.
“This year's Plan, with 170 billion euros of direct investments by 2030 – underlines Francesco Starace – represents a turning point. Its implementation allows us to advance from the previous Decade of Renewable Energy Discovery to the current Decade of Electrification. We are accelerating growth across all business areas and for our customers, which translates into an expected reduction in their energy bills while increasing their electricity demand by 2030. We are also bringing the goal forward by ten years of the complete decarbonisation of the Group, with the achievement of "Net Zero" by 2040. We will continue to grow in renewables, enhancing what is already today the largest private portfolio of renewable assets in the world. The Infrastructure and Networks business and the new Global Customers business line will allow us to seize the incredible opportunities offered by electrification. The pioneering work done by all Enel colleagues and the advanced digital transformation of the Group will allow us to meet the evolving needs of customers over the course of this decade.”
Positive reception on the Stock Exchange where the stock was up by 0,85% at the start of the morning.
