The definition of the integrated strategy for the "core" countries required a general rethinking of both the commercial and infrastructural approach, also in order to draw differentiated plans and modes of execution based on the different transition paths and peculiarities of each market.
For each country, a commercial plan and a sourcing plan were outlined, according to a logic of integration, aimed at maximizing the value created. Specifically:
- the commercial plan aims to maximize and optimize opportunities on sales and includes long-term ambitions (e.g., electrification levels, customers, churn rate, market share...) on beyond commodity products and services, differentiated by customer segments;
- the sourcing plan aims to minimize and optimize the cost of sourcing, in accordance with the needs of the business plan and any other needs related to the relevant electricity system and market. The Plan includes: generation already available from existing plants in the country, additional generation from plants under development for growth also with integration of storage systems, and other generation that can be purchased in the market.
At a later stage, the two plans are optimized on the basis of integrated value, leading, for example, to a revision of the sales portfolio - oriented toward segments with higher electrification rates - or to an optimization of the sourcing plan, through more organic growth and flexibility, or to alternative strategic options. Plan optimization takes into account the financial balance generated as a result of the simulations.
The integrated strategy adopted by the Group is therefore based on an iterative process, which is conducted in a "rolling" manner throughout the year at set intervals or following "trigger events." To ensure the effectiveness and consistency of the final outputs by country, a centralized coordination of the process is implemented, with a central team providing the 6 core countries with a set of inputs (scenario assumptions, methodologies, models and financial constraints to be met...) within which the business identifies the most targeted industrial options.