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Enel eyes 14 GW of renewables built in 2020-2022

Source: Enel Green Power

November 27 (Renewables Now) - Italian energy major Enel SpA (BIT:ENEL) expects to develop 14.1 GW of renewable energy projects through 2022 and thus achieve a 60% share of renewables in its total capacity.

On Tuesday, the group presented its strategic plan for the period 2020-2022, which includes a commitment to pour some EUR 14.4 billion (USD 15.8bn) into a sped-up deployment of renewables and the progressive substitution of coal generation. By 2022, Enel is seen to cut coal capacity and production by 61% and 74%, respectively, compared with 2018.

The total organic capital expenditure (CAPEX) Enel plans for the three-year period amounts to EUR 28.7 billion, which is an 11% increase from the 2019-2021 plan. About 44% of that concerns the group’s renewables arm Enel Green Power (EGP), while 41% is allocated for the Networks business.

At present, EGP’s consolidated capacity is 42.3 GW, of which 66% comes from hydro and 25% from wind power. Enel envisions an expansion to 54.2 GW in 2022, with 52% hydro and 31% wind.

The table below gives more details about EGP’s planned portfolio expansion.

Source 2019 2022
Hydro 27.9 GW 28.1 GW
Wind 10.7 GW 16.4 GW
Geothermal 0.9 GW 0.9 GW
Solar & Other 2.8 GW 8.8 GW

In terms of geography, in 2022 Latin America will be EGP's largest market when it comes to installed capacity, with a projected 10.7 GW of hydro, 3.7 GW of wind and 4 GW of solar and other assets. This means that Enel anticipates adding about 5.1 GW of renewable energy capacity, mostly wind and solar, in LatAm between 2019 and 2022.

Overall, the investments outlined in the plan are expected to result in a 13% rise in ordinary earnings before interest, tax, depreciation and amortisation (EBITDA) to EUR 20.1 billion in 2022 from EUR 17.8 billion estimated for 2019. Net ordinary profit is to climb to EUR 6.1 billion in 2022 from EUR 4.8 billion in 2019. The minimum dividend per share is seen to reach EUR 0.40 in 2022 versus EUR 0.32 this year.

(EUR 1.0 = USD 1.100)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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