- Enel Group has decided to turn net zero in 2040, 10 years ahead of previous schedule
- It plans to invest €70 billion on increasing its renewables capacity under direct ownership to 129 GW, out of 154 GW cumulatively
- It will also exit coal generation by 2027 and gas by 2040, ensuring all of its power generation is completely sourced from renewables by 2040
Italy headquartered electricity and gas supplier Enel S.p.A. plans to increase its cumulative renewable energy capacity by 2030 to around 154 GW under the group’s 2022-2024 Strategic Plan. It would include 129 GW capacity under the company’s direct ownership, comprising 84 GW of new capacity addition out of which 9 GW is in storage.
Enel expects to mobilize €210 billion between 2021 and 2030 to realize its strategic plans, and directly invest around €170 billion through ownership and stewardship model. Of this, it has reserved €70 billion solely to be invested on increasing renewables capacity to 129 GW, mainly in tier I nations.
“This is expected to be accomplished by leveraging on a growing pipeline of around 370 GW, more than double the one that was presented last year, alongside three global platforms for Business Development, Engineering and Construction as well as Operation and Maintenance,” it explained.
At the end of 2021, the group’s total renewable capacity is expected to grow to 77 GW, up from an estimated 54 GW.
Management has agreed to bring forward the group’s net zero commitment 10 years earlier to 2040, than the previously targeted 2050, with plans to exit coal power generation by 2027 and gas generation by 2040, replacing entire thermal fleet with new renewable capacity. Hybrid renewable and storage solutions are also part of the scheme.
Enel said by 2040 it will exit the gas retail business, and sell only renewable electricity. It is also creating a Global Customers business line to define its commercial strategy and drive capital allocation towards customer needs.
With the execution of this strategy between 2020 and 2030, Enel expects to grow its group ordinary EBITDA with a 5% to 6% compounded annual growth rate (CAGR) and report between €21.0 and €21.6 billion in 2024, compared to €18.7 billion and €19.3 billion in 2021.
Enel’s news follows Germany’s RWE and E.ON committing to higher renewables target as these companies navigate a world fast moving towards achieving energy transition (see E.ON To Grid Connect Up To 40 GW RE By 2026).