Enel unveils plan for €18.6bn grid investment 

Italy’s Enel Group has announced a new investment strategy for the period 2024-2026, doubling down on grid investments and being more selective in renewables.

With plans to spend €35.8 billion ($38.96) by 2026, more than half of this being funnelled into power grid investments, the Group said more focus will be placed on profitability, flexibility and resiliency through selective capital allocation to maximize its risk/return profile.

The nearly €19 billion for grid investments will focus on improving quality, resiliency and digitalisation of the power grid, alongside new connections.

Beyond the power grid, approximately €12.1 billion will go into renewables, based on more selective investment decisions, investing in onshore wind, solar and battery storage.

Additionally, €3 billion will go into actively managing Group customer portfolios through ‘multi-play bundled offers’, which include commodities and services within an integrated portfolio.

Through its new strategy, the Group plans to focus its investments where returns are visible, regulatory frameworks are remunerative and macro-economic as well as political environments are stable.

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Specifically, of the total €35.8 billion, 49% will be invested in Italy, 25% in Iberia, 19% in Latin America and 7% in North America.

Enel Group’s new CEO Flavio Cattaneo, who succeeded Francesco Starace earlier this year in May, said that the strategy “aims to reshape the Enel Group into a leaner, more flexible and resilient organisation, well-positioned to face the challenges and seize the opportunities that may arise in the future.

“In the next three years, we will adopt a more selective approach towards investments in order to maximise profitability while minimising risks.

“We will focus on our core countries by implementing integrated strategies, targeting networks, renewables as well as value creation in the customer segment through bundled commercial offers.

“Financial discipline will be the cornerstone of our strategy, boosting cash generation and efficiencies, with sustainability continuing to guide our business decisions. By carrying out these actions and reaching our targets, we will be able to further strengthen Group financial position and enhance value creation, ensuring sound returns for our shareholders.”

Through the new strategy, by 2026, the Group forecasts their Ordinary EBITDA to grow to between €23.6 and €24.3 billion.

Enel will be speaking about the role of grids in the European energy transition at Enlit Europe, specifically during the keynote and the press conference.