Strategic Plan 2019-2021: our renewable future

Published on Wednesday, 21 November 2018

Enel is the largest private company in the renewables sector and the leading network operator. It also has the most extensive client base in the world. On Capital Markets Day 2018 it presented a Strategic Plan for the three-year period 2019-2021, with the aim of strengthening an already impressive, acknowledged leadership position on the new energy scene.
The Plan, which was presented on 20 November at the Excelsior Hotel Gallia in Milan, predicts global investments of 27.5 billion euro during the period 2019-2021, with the objective of generating an EBITDA of 3.2 billion, euro, an increase of 12% with respect to the previous plan.

Towards Green Energy

Over the next three years we are aiming for further robust development in renewables, digitalisation for even greater reductions in cost and increasing attention to clients. This has already enabled the Group to grow its free market retail base by five million clients, with a 20% increase in the number of final users served by the Group’s networks over the last three years. Of around 16.5 billion euro of overall investment in asset development, roughly 10.6 billion euro went to clean energy, once again driving growth for the Group. This will strengthen the focus on Italy, Spain, Chile and Brazil. Even in late 2018 the proportion of Enel’s mix of generating methods using zero-emission technology will stand at 48%, a figure that is set to rise to 62% in 2021. Investments of around 11.1 billion euro are forecast for networks, and this should generate an increase in EBITDA of around 1.2 billion euro over the three-year period. 

Sustainability taking priority

“Enel now features greater sustainability, efficiency, profitability and lower levels of risk,” said our Group’s CEO Francesco Starace when he presented the Plan to investors and the media alongside CFO Alberto De Paoli. “The transformation taking place in the energy sector presents some challenges, but also offers new opportunities. We’re in a good position to generate value from this transformation. Enel’s strategy is now entirely based on sustainability, integrating the principles of Shared Value and Open Innovation practices in all business processes,” Starace added, recalling our commitment towards the UN’s SDGs (Sustainable Development Goals). In particular the Group has exceeded its objective for 2020 in terms of Quality Education (SDG 4), and has made significant progress in the context of Affordable and Clean Energy (SDG 7) and Decent Work and Economic Growth (SDG 8). The new Plan introduces additional targets in two other specific areas - Industry, Innovation and Infrastructure (SDG 9) and Sustainable Cities and Communities (SDG 11). 

Italy drives the Group’s leadership

Italy also confirms its position as one of the leading countries in the Group’s growth. We have an 85% share in the regulated market (16.8 million clients, mainly families) and a 50% share of the free market (8.5 million). Enel also has four million clients in the gas market. 51% of the seven billion euro of profitability (EBITDA) generated in Italy in 2018 derives from the grid, with 31% from the retail market and 16% from renewables. The plan for the next three years envisages significant investment in e-mobility infrastructure by Enel X, as well as green energy and network resilience and flexibility through digital transformation.  

“Enel’s strategy mainly concentrates on the free market, where our brand and our differentiation support premium positioning,” said Carlo Tamburi, Head of Country Italy. “We have two main objectives in the retail sector – we want to sustain the current level of profitability (EBITDA) and continue growing on a free market client base. Retail in Italy is constantly driving for greater efficiency, and digitalisation will complement this.” 

A sustainable Capital Markets Day

The Capital Markets Day 2018 was also a sustainable event. Thanks to our collaboration with the Treedom startup, 740 trees will be planted in Sicily and Colombia to offset the CO2 emissions generated throughout 2017 by financial marketing events, roadshows and last year’s Capital Markets. The planting will form part of agroforestry projects whose purpose is to reduce the greenhouse effect, encourage biodiversity in the surrounding region and develop entrepreneurial skills in local communities.  

Strategic Plan 2019-2021

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