Italy's Enel Group, the largest energy and utilities company in Europe, has announced it is to plough €160 billion over the next decade as part of its strategic plan which aims to clean the business and become carbon-free by 2050.
Enel Group HQ, Rome
Inside Enel's head office in Viale Regina Margherita in Rome. Photo: Enel Group
Enel said that it expects to attract another €30 billion from outside the group, which brings its planned overall spending to €190 billion to increase earnings and cut emissions by 80% by 2030.
The news comes as all Europe's large utility companies are investing heavily into cleaning their business, as new technologies make it more possible and governments lay down more stringent rules to tackle the climate crisis, forcing energy companies - including big oil - to rethink their approaches.
Earlier this month, Spanish competitor Iberdrola announced plans to spend €75 billion in the production of renewable energy, grids and retail operations by 2025.
Enel said it will spend €70 billion on renewable energy by 2030, bringing its total capacity to 120 GW.
Francesco Starace, Enel CEO and general manager, said: "With this new Strategic Plan we are setting a direction for the next 10 years, mobilising €190 billion in investments to pursue our goals in a decade full of opportunities. To realise this vision, we can leverage on our clear leadership in the utility sphere across three main elements.
"First, as a ‘Super Major’ in the renewable sector, we operate the world’s largest private generation fleet. Furthermore, we have an unparalleled global network system, where the platform-operating model drives improvements in quality, resiliency, efficiency and flexibility. Last but not least, we count on the largest customer base worldwide to which, through our business platforms, we provide innovative services and integrated offerings.
"Throughout the decade, we will strengthen the creation of sustainable shared value for all stakeholders, which is also embedded in an attractive remuneration for our shareholders,” Starace concluded.
Enel also said it would bring forward the phasing-out date of coal from its generating fleet, by three years, to 2027.
The utility firm also gave projections of earnings and debt, with core earnings to 2023 set to grow by 5-6% and debt rising to €57 billion-€58 billion to help fund growth.
Shares in the group were up 2.6% at the start of trading this morning, with the European utility sector up 0.5%.
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