March 3, 2021

Endesa announces 25,000 million in investments until 2030 to take advantage of the energy transition

Endesa announced this Wednesday investments of 25,000 million between 2021 and 2030 to take advantage of the opportunities derived from the National Integrated Energy and Climate Plan (PNIEC), the Government’s ‘roadmap’ to address the energy transition in the next decade, and the EU funds for post-Covid recovery, according to the 2030 vision for the company presented as a novelty within the update of its 2021-2023 strategic plan.

Of this investment effort, 40% will be destined to increase the renewable generator park, with the goal of reaching more than 18,000 megawatts (MW) after the incorporation of more than 10,000 additional MW to the group’s operations at the end of 2020. Another 40 % will go to the distribution network, which will raise the regulated network asset base from € 11.6 billion to € 13 billion at the end of the period, reports Europa Press.

With this plan, Endesa intends for its percentage of CO2-free production to reach 80% by the end of the decade, which accelerates the decarbonisation path compared to the previous plan, which foresaw that 140 grams of carbon dioxide would be emitted in 2030. carbon per kilowatt-hour of electricity produced. A threshold that is now reduced to 95 grams, 80% less compared to 2017.

The company led by José Bogas also plans to accelerate even more in the closure of coal, in line with its parent company Enel, and will have completely ceased all its generation operations with this technology, inside and outside the Iberian Peninsula, in 2027.

Within its strategic plan for the 2021-2023 period, Endesa will increase the volume of its investments for the next three years by 25%, in relation to the 2020-2022 strategic plan, to reach 7.9 billion euros, as announced on Tuesday its parent, the Italian semi-public Enel. Of that figure, 3.3 billion will be destined to increase the renewable energy generating park, a figure that is 20% higher than in the previous plan.

With this investment, the company will reach 11,500 MW of solar, wind and hydroelectric power by the end of 2023. That is, around 50% more than the 7,700 MW with which this year 2020 will conclude.

Regarding the electric vehicle, the plan for the deployment of charging points for electric vehicles sets the goal of reaching 56,000 operations by the end of 2023 and reaching 575,000 by 2030.

Financial results

Regarding the dividend policy, the group has confirmed a payout of 100% of the profit in 2020, 80% in 2021 and 70% in 2022, extending this percentage from 70% to 2023. The energy company highlighted which “thus adapts its dividend policy to a much higher growth profile derived from this strategic plan.” This will involve distributing some 5,950 million euros in dividends among its shareholders in the period 2020-2023.

Endesa plans to increase its gross profit (Ebitda) by 10% in the period, from the 3,900 million estimated for 2020 to 4,300 million euros in 2023 as a result of this increase in investment of 25% to 7,900 million.

Enel Green Power Spain, its renewables subsidiary, will double its contribution to Ebitda from 300 million to 600 million between 2020 and 2023. An additional 100 million of Ebitda will come from the distribution business, which will go from a gross profit of 2,000 million to 2,100 million .

For its part, it foresees that its net result will go from the estimated 1,700 million in 2020 to 1,900 million at the end of 2023, 12% more.


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