Italian utility giant Enel SpA (BIT) has unveiled an ambitious plan to invest €38 billion ($40.05 billion) into its grid and renewables businesses. This initiative aims to boost profitability and reduce risk between 2025 and 2027. The company intends to focus on core activities while targeting regulated assets that offer predictable returns.
Strategic Investment Focus
Enel’s investment strategy centers around its core businesses. The company plans to direct most of its capital toward regulated infrastructure, such as energy grids, which provide stable returns. Enel’s commitment to this focused approach aims to strengthen its financial solidity and drive long-term growth.
CEO Flavio Cattaneo highlighted that Enel has met all its previous financial targets. This sets the stage for the next phase of growth. As part of the strategy, Enel raised its minimum dividend allocation to €0.46 per share, up from €0.43 per share.
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Key Investment Areas
Enel’s € 43 billion gross investment plan spans across multiple regions. About 75% of the total capital will be invested in European markets, with the remainder allocated to Latin and North America.
Investments in Grids
The company plans to allocate approximately € 26 billion to grid-related investments, primarily in Italy and Spain. These investments are part of Enel’s long-term vision to modernize and expand its grid infrastructure, ensuring reliable energy distribution across Europe.
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Focus on Renewables
Enel’s renewable energy investments will total € 12 billion. The company aims to deploy 12 GW of new generation capacity, focusing mainly on onshore wind, hydropower, and battery storage technologies. By 2027, Enel expects to reach 76 GW of installed renewables capacity, with Europe and the US accounting for 55% of total renewable energy production.
Future Outlook
Enel is confident that these strategic investments will boost renewable output by over 15% over the next three years. The company is positioning itself for future growth, ensuring sustainable energy solutions for its global customer base.
With these investments, Enel is set to drive growth, increase profitability, and continue its leadership role in the global energy transition.