Enel Group has disclosed its comprehensive strategy for 2024-2026, outlining an investment of over €12 billion in renewable energy. The €12.1 billion strategy encompasses onshore wind, solar, and battery storage investments, with a focus on repowering and adopting more discerning investment decisions.
Europe is set to receive approximately €7.2 billion of the gross capital expenditure (capex), with the strategy emphasizing renewable generation supported by an extensive customer base, providing stability to output and returns. In Latin America, Enel plans to allocate around €2.6 billion of gross capex, employing a flexible approach that capitalizes on renewable development backed by Power Purchase Agreements (PPAs).
For North America, the group earmarks around €2.3 billion of gross capex, targeting increased profitability through a focus on cash generation and leveraging partnership models. Enel's new approach to renewable investments centers on three distinct business models: an ownership model (100% stake), primarily applied in Italy and Iberia for higher and hedged returns; a partnership model (stake exceeding 50%), balancing asset risk exposure while retaining control and optimizing capital productivity; and a stewardship model (stake equal to or lower than 50%) for peripheral geographies, enhancing financial flexibility and capital returns.
Enel's innovative strategy aims to deliver approximately 13.4GW of new renewable capacity across all geographies between 2024 and 2026. With an existing pipeline of around 450GW, including 160GW at an advanced stage, the group anticipates enhanced visibility on returns and minimized risks. The strategy also provides the flexibility to monetize segments of the pipeline not crucial to industrial growth. By 2026, Enel projects its renewable capacity to reach approximately 73GW, up from an estimated 63GW in 2023.
Enel Chief Executive, Flavio Cattaneo, highlighted the strategic shift towards a leaner, more flexible, and resilient organization. The emphasis on selectivity in investments, core country focus, financial discipline, and sustainability aligns with the goal of maximizing profitability while minimizing risks. The strategy, grounded in integrated approaches and targeting networks, renewables, and customer value creation, aims to fortify the Group's financial position and deliver sound returns for shareholders.
