In November 2022, the Group presented its new Strategic Plan for 2023-2025, setting out a strategy for responding to the new global challenges, based on simplification and focusing on the geographical areas that will make it possible to fully seize the opportunities associated with the energy transition.
In particular, the Strategic Plan seeks to:
- focus on an integrated industrial supply chain towards sustainable electrification;
- achieve strategic repositioning of businesses and geographical areas of operation;
- ensure growth and financial soundness by combining the growth of ordinary profit with stronger credit metrics as early as 2023.
In pursuing these objectives, between 2023 and 2025 the Group expects to invest a total of around €37 billion, of which 60% in support of the Group’s integrated commercial strategy (generation, customers and services) and 40% on grids, to support their role as enablers of the energy transition.
The Plan will focus on four strategic actions.
- Balancing client demand and supply to optimize risk/ reward profile.
By 2025, the Group expects to sell around 80% of its electricity volumes in the six core countries with fixed-price contracts. The Group also expects to satisfy 100% of fixed-price sales with its own generation and long-term power purchase agreements (PPAs), envisaging that around 90% be covered by carbon-free sources, to further ensure the evolution of the Group’s margins. - Decarbonization to ensure competitiveness, sustainability and security.
By 2025, the Group expects to add approximately 21 GW of installed renewables capacity (of which some 19 GW in core countries), positioning itself well towards achieving its decarbonization objectives, in line with the Paris Agreement. - Strengthening, developing and digitalizing grids to enable the transition.
The Group’s strategy for grids concerns five of the six core countries, namely Italy, Spain, Brazil, Chile and Colombia. - Rationalization of business portfolio and geographical areas.
The Group plans a further rationalization of its structure, exiting some businesses and geographical areas that are no longer aligned with its strategy, in order to redefine the Group structure, maximizing shareholder value.
As a result of the strategic actions described above, the Group’s ordinary EBITDA is expected to reach €22.2-22.8 billion in 2025, compared with €19.7 billion in 2022.
Group ordinary profit is expected to grow to €7.0-7.2 billion in 2025, compared with €5.4 billion in 2022.
Enel’s dividend policy remains simple and predictable, with a DPS of €0.43 in the 2023-2025 period, up from €0.40 in 2022. Furthermore, the DPS in 2024 and 2025 should be considered as a sustainable minimum.
The following are planned for 2023:
- a continuation of the investment policy in renewable energy to support industrial growth and as part of the decarbonization policies followed by the Group;
- further investments in distribution grids, especially in Italy, with the aim of improving service quality and increasing the flexibility and resilience of the grid;
- a continuation of the investment policy dedicated to the electrification of consumption, with the aim of enhancing the growth of the customer base, as well as continuous efficiency improvement through global business platforms.
In view of the foregoing, the financial targets on which the Group’s 2023-2025 Plan is based are reported below.