Pumping billions into renewables and electricity grids
Grids will receive the lion’s share of investments over the course of the plan, with some 18.6 billion euros spent on improving their quality, resilience and digitalization, as well as on creating new connections.
Finally, some 3 billion euros will be devoted to developing client solutions, with a focus on ‘bundled’ packages of products and services, tailored to different types of users – private/residential consumers, governments, SMEs – and offered through a single touch-point, facilitating access and enhancing the overall experience.
A smaller, but more focused and profitable, geographic footprint
An easily accessible energy world built around our customers
“Three Pillars” that ensure financial and environmental sustainability
“Group operations will run on simplified processes, [leading to] a leaner organization with clear accountability,” Cattaneo explained, adding: “We’ll maintain strict operating cost discipline to improve cash generation and offset rising inflation and cost of capital.”
Finally – but not less importantly – the third “pillar”, sustainability, which in the eyes of the CEO refers not just to the environmental impacts of Enel’s operations, but also to the impacts on the company’s financials. The CEO said the focus of the plan is to “create a sustainable business model able to self-finance its needs and continue addressing climate change issues” while enabling a deleveraging of the Group’s balance sheet and guaranteeing payment of an annual dividend. The previous strategic plan called for the company to have a net debt/EBITDA ratio of 2.4x to 2.5x by 2026; under the current plan that will decrease slightly, Cattaneo explained, to approximately 2.3x, helping improve Enel’s credit ratings, which – in turn – reduces its cost of capital.