Enel Group to invest €26bn in grids to 2027

Enel Group has announced its 2025 to 2027 plan, with total gross capex coming to €43 billion ($45.5 billion). The majority, €26 billion ($27.5 billion), will be funnelled into the company’s grids segment.

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.

According to Enel in a release, on the back of these investments, the Group’s power grids are expected to be more resilient, digitalised and efficient. Additionally, as a result of these investments, the Group’s grid segment is expected to account for about 40% of their Ordinary EBITDA in 2027.

Within Enel Group’s strategy, approximately €12 billion ($12.7 billion) will also be directed to the renewables segment and €2.7 billion ($2.9 billion) will be spent on their customers segment.

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Within renewables, the aim is to add around 12GW of capacity, with a technological mix that foresees over 70% of onshore wind and dispatchable technologies (hydro and batteries), up to an overall capacity of about 76GW and an increase of over 15% in production in 2027.

In the customers segment, approximately 85% will be directed to countries where Enel has an integrated presence, offering a portfolio of solutions with energy, products and services.

Additionally, Enel is considering value propositions in the fast-growing data centre sector, in relation to which optimised grid connection solutions and integrated renewable energy offers are expected.

Latina American investments amid a Brazilian lawsuit

Under the Group’s renewed plan, they say distribution networks will continue to be the enablers of the energy transition, in particular in their ability to guarantee increased resilience to extreme weather events that are becoming more frequent and severe.

For example, extreme rains in Brazil in mid-October affected the company’s grids and resulted in power supply interruptions in São Paulo.

Last week, the Brazilian Attorney General Office (AGU) issued a Public Civil Action against Enel (Eletropaulo Metropolitana Eletricidade de São Paulo) after the supply interruptions, so that the company would need to compensate consumers affected by the interruption in the energy supply.

In the lawsuit, the AGU is requesting payment to the tune of R$260 million (€42.6 million; $45.1 million).

According to the AGU, the company “deliberately chose to reduce its investments even amidst a growing demand for emergency services…”

Specifically, the AGU in a release claims that Enel chose to “maximise its profits to the detriment of its obligation to make the necessary investments to guarantee the minimum quality of service in accordance with the contractual provisions and the sector’s regulations.”

Reuters reportage quotes Flavio Cattaneo, general manager of Enel during their Capital Markets Day: “We believe that we acted in accordance with all regulatory parameters and we are open to finding an amicable solution to continue operating our distribution network (in Santiago).”

Within Enel Group’s 2025 to 2027 Strategy, they say that in both Brazil and Chile they are committed to maintaining their energy distribution concessions.