Naturgy to pour EUR 8.7bn in renewables in 2021-2025
Carpio de Tajo solar farm in Toledo, Spain. Image by Naturgy (www.naturgy.com)
Spanish power and gas utility Naturgy Energy Group SA (BME:NTGY) will set aside some 60% of its EUR-14-billion (USD 16.6bn) 2021-2025 spending plan to boost renewable energy capacity.
Average investments in Spain and globally are to reach about EUR 1.73 billion per year, or about EUR 8.7 billion in total. The goal is to increase the renewables EBITDA to EUR 1 billion by 2025, Naturgy said in its presentation of the 2021-2025 strategic plan.
Naturgy will aim to triple its installed renewable energy capacity to 14 GW by mid-decade from 4.6 GW it currently has, and bring its gigawatts to “attractive countries with stable regulation and strong currencies”. It said it plans to grow in Europe by 5.2 GW, add 2.2 GW in Australia, and incorporate some capacity in countries such as the US and Chile.
The group’s financial targets are EBITDA of EUR 4.8 billion and net profit of EUR 1.6 billion in 2025.
The strategic plan also foresees investments of over EUR 4 billion in grids in Spain and Latin America, specifically to upgrade the networks’ capacity to fit the needs of the decarbonisation. Naturgy said it estimates that it will be able to inject more than 1 TWh of renewable gas into Spain’s gas grid by the end of the planning period.
At present, 95% of the gas pipelines of Naturgy’s distribution company are already adapted to move renewable gas and hydrogen, according to the utility.
The remainder of the proposed investment, over EUR 700 million, would go towards the retail business.
“We are ready for a new stage of transformation. Naturgy has demonstrated its ability to achieve results and create value in its businesses on a daily basis. Our position is to accelerate our transformation and anticipate the many challenges ahead of us as a society, industry and country,” said CEO Francisco Reynes.
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