The utility says its strategic plan is sustainable and innovation-driven, has customers as its core and will help maximise the opportunities created by the energy transition.
The plan will enable the utility to line with key global energy trends decarbonisation, electrification, urbanisation, and digitalisation.
Enel plans to achieve this by increasing its investments in renewables, network infrastructures and new energy services.
The strategic plan includes:
- Investing 27.5 billion euros of gross capex in Asset Development, Customers and Asset Management as part of its industrial growth strategy.
The investment is expected to result in 3.2 billion euro incremental ordinary earnings before interest, tax, depreciation and amortisation (EBITDA)
- Invest in renewables to generate 62% of total energy using clean resources by 2021 from 48% in 2018.
Decarbonisation efforts are expected to generate a total of 1 billion euros of incremental EBITDA between 2018 and 2021.
- Enhance operational efficiency by investing in digital technologies. This will result in 2 billion euros of cumulated benefits by 2021.
- Enel will focus on improving return on invested capital, increase investments in human capital and will increase its economic interest in subsidiaries.
Francesco Starace, CEO of Enel said: “Since 2015 we have delivered on all of our targets through a significant improvement in cash flow generation, which, combined with an acceleration on growth, has allowed us to increase our shareholder remuneration, raising DPS from 0.16 to 0.28 euros per share in 2018, and expand our payout ratio that is set to remain stable at 70% over the plan period.
Enel has increased its ordinary EBITDA to 16.2 billion euros by end of 2018.