Enel plans EUR-70bn renewables spending by 2030

Enel's Fonte dos Ventos wind project in Brazil, developed by SOWITEC and turned into a wind/solar hybrid. Source: SOWITEC group

Italian utility giant Enel SpA (BIT:ENEL) is preparing to invest about EUR 70 billion (USD 83.3bn) in gigawatt-scale renewable energy development by the end of the decade, the company announced in the 2021-2030 strategic plan on Tuesday.

The plan will help Enel to beef up its position as a “renewables super-major” and raise the installed capacity to around 120 GW in 2030 from some 45 GW it currently has. This ambition will carried out under the group’s “Ownership” business model, while through the so-called “Stewardship” model Enel will seek to pour a further EUR 10 billion and catalyse some EUR 30 billion from third parties for investments not only in renewables, but also in Fiber, e-transport and flexibility.

In the period 2021-2023, Enel will make a direct investment of some EUR 17 billion in renewables to increase its overall installed consolidated capacity by 33% to 60 GW. A large portion of a planned EUR-2-billion investment under the “Stewardship” model will also be directed towards renewables, enabling the group reach around 8 GW of managed capacity in 2023.

At the same time, the group will seek to grow demand response capacity 1.8 times to 10.6 GW and storage capacity 4.2 times to 527 MW.

Overall, Enel plans to mobilise investments totalling EUR 190 billion under both models in the 2021-2030 period, including direct spending of around EUR 160 billion on renewables, infrastructure and networks, as well as customers.

Below you can see Enel’s financial targets for the two periods.

Figures in EUR billion	2020 E	2021	2022	2023	CAGR 2020-2023
Ordinary EBITDA	~18	18.7-19.3	19.7-20.3	20.7-21.3	+5%/+6%
Net ordinary income	5.0-5.2	5.4-5.6	5.9-6.1	6.5-6.7	+8%/+10%