Endesa boosts grids investments to €4bn by 2027
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Enel-owned Spanish DSO Endesa has increased its investment plan to €9.6 billion ($10.1 billion) over the 2025 to 2027 period, with their investments on grids expected to come to €4 billion ($4.2 billion), a 45% increase compared to their prior plan.
The investment plan itself marks an 8% total increase compared to the 2024 to 2026 period which, according to Endesa, represents a historic record for the company since it began operating within its current operating area (Iberian Peninsula) in 2014
While grids remain they key segment, the company is also redirecting investment in renewables, totalling €3.7 billion ($3.9 billion), by reducing exposure to solar and focusing on what they call higher-value assets: hydroelectric, with the acquisition of 626MW in Aragon, as well as wind power developments.
Endesa CEO, José Bogas, commented on the plan in a telecast during the company’s annual capital markets day:
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Endesa’s release of the strategic plan coincided with the company’s 80-year anniversary and followed mother company Enel’s own strategy plan, released a day prior.
Similar to Endesa, grids form the key focus of the Group’s strategy, up 40% compared to their previous 2024 to 2026 plan.
Approximately 78% will be spent in Italy and Spain, both of which Enel says are countries characterised by regulatory frameworks that can support investments, and about 22% in Latin America.
Endesa also cites the update of the National Energy and Climate Plan (NECP), presented by the Spanish government in September, which outlines 55TWh of new electricity demand expected by 2030, excluding the demand for producing green hydrogen.
The plan, says Endesa, is supported by two main pillars, including a fourfold increase in electricity consumption in the transport sector and an anticipated 48% increase in industrial demand, which must be accompanied by the development of the electricity grid to support it.
The government’s plan therefore anticipates that investment in grids (both distribution and transmission) will reach €52.4 billion from 2021 to 2030, necessitating a threefold increase in the annual investment volume for both types of grids during the remaining years of the decade.
With the release of the plan, Endesa expects its EBITDA to reach €5.2 billion ($5.5 billion) this year.
Endesa’s grid investments are subject to regulatory improvements and updates.
