Enel’s business model has been structured so as to Group’s strategic objectives, including the commitments made by the Group in the fight against climate change.
The business model delineates how the organizational units of the Company, linked to our three main businesses (generation, distribution and sales to end users), must work to reap all the possible benefits from the main trends in the sector, in particular from trends bringing about the energy and digital transitions, possibly accelerating their implementation as well.
The role defined for all the major organizational units is also intended to enable them to effectively address all the risks posed by developments in the rapidly changing energy industry.
In order to fully benefit from all the opportunities emerging in the market environment in which it operates, the Group has identified two different business models (Ownership and Stewardship) that it can use to achieve the ambitions we have defined.
The most appropriate and effective business model is selected depending on the geographical area and operating environment involved:
- the Ownership business model, in which the Group makes direct investments in renewables, grids and customers. This model is employed in countries where the entire value chain can already be leveraged, from generation to integration with end user. These six countries are defined as “core” or “Tier 1” countries and today include Italy and Spain in Europe and the United States, Brazil, Chile and Colombia in the Americas. The central role of our customers in the Group’s business model makes the integrated margin a pillar of our Plan. The correct management of the integrated margin requires the joint optimization of both sales of power, considering the different options available in the countries in which we operate, and provisioning, which is linked to our generation rather than to the different sourcing options;
- the Stewardship business model, in which the Group invests capital in existing or new joint ventures or acquires minority stakes, with a view to maximizing the value of the know-how developed in the various businesses in which it operates with important financial and industrial partners. This is achieved through the delivery of specific contractual services to partners or the subsequent monetization of these investments on the market. This model focuses mainly, but not exclusively, on “non-core” or “non-Tier 1” countries, where the Group’s presence is not integrated and it seeks to build partnerships with third parties to explore new geographical areas or to leverage the Group’s operational experience in alternative environments. It can also be activated for innovative businesses in core countries to facilitate start-up and scale-up.
In this design, each country organization acts within its territory in a matrix relationship with the broader and more global business lines, managing activities such as relations with local communities, regulation, the retail market and local communication. The current mission of each business can be summarized as follows: