November 20 (Solar) – Italian energy group Enel SpA (BIT:ENEl) intends to expand its renewable energy capacity by 11.6 GW in 2019-2021 in line with decarbonisation goals.
On announcing its strategic plan for the period on Tuesday, the Italian company said it will invest about EUR 10.6 billion (USD 12.1bn) in renewables as it aims to lift the share of emission-free power generation in its portfolio to 62% by 2021 from 48% in 2018. Enel estimates that its gross capital expenditure (capex) in the three-year period will be EUR 27.5 billion, of which 42% will go for renewables. Around 40% of the total capex will be for networks projects, while only 9% will go for thermal power, which will drop to 7 GW after the increase in renewables capacity.
Apart from industrial growth and decarbonisation, Enel’s strategy also includes efforts to improve operational efficiency, shareholder remuneration, human capital and simplification processes.
According to Enel’s calculations, renewables are expected to bring a total of EUR 1 billion of incremental earnings before tax, depreciation and amortisation (EBITDA) between 2018 and 2021. The Italian group's financial targets for the 2018-2021 period can be seen in the table below.
|Amounts in EUR unless otherwise noted||2018||2019||2020||2021||CAGR 2018-21|
|Ordinary EBITDA||16.2bn||17.4 bn||18.5bn||19.4bn||+6%|
|Net ordinary income||4.1bn||4.8bn||5.4bn||5.6bn||+11%|
|Pay-out ratio (%)||70||70||70||70||—|
|Minimum dividend per share||0.28||0.32||0.34||0.36||+9%|
(EUR 1.0 = USD 1.139)