Italian energy company Enel Group has announced a €43bn investment plan for the period 2025-2027, focusing on expanding renewable energy production and modernising power grids.
The initiative represents an increase of €7bn compared to what was outlined in the 2024-2026 strategy plan.
Enel aims to add 12GW of renewable energy capacity, raising its total installed capacity to 76GW by 2027. The €12bn investment in renewables will prioritise onshore wind, hydroelectric projects, and battery storage.
As a result, Enel’s total renewable production is expected to increase by more than 15% over the plan period, spanning all geographies, mainly in Europe and the US.
The Italian company is dedicating €26bn to grid upgrades, a 40% increase from its prior plan, to accommodate additional renewable energy capacity and improve resilience against climate change impacts.
Enel’s grid investments are expected to expand the company’s regulated asset base to around €52bn by 2027, compared to nearly €43bn in 2024.
Commitments to grid modernisation are anticipated to make this segment contribute about 40% to the company’s ordinary earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 2027.
The company is also investing €2.7bn in customer services, targeting growth in bundled energy solutions across integrated markets. By 2027, Enel plans to increase its free-market power customer base in Italy and Spain to over 19 million.
Enel intends to distribute investments across its key regions in proportion to their respective EBITDA contributions, with approximately 75% allocated to Europe and around 25% to Latin America and North America.
The Italian energy group projects its ordinary EBITDA to rise in the range of €24.1bn and €24.5bn by 2027, while net ordinary income is expected to reach €7.1bn to €7.5bn.
It has revised its dividend policy, setting a minimum payout of €0.46 per share with the potential for up to a 70% payout on net ordinary income.
Enel CEO Flavio Cattaneo said: “Between 2025 and 2027, we will focus on core activities and a flexible capital allocation, increasing investments mainly on regulated assets with predictable returns that will also support the acceleration of the energy transition.
“Moreover, we will continue to enhance efficiency and profitability, including through new business opportunities.”
Earlier this year, Enel completed the $271m sale of a 150MW contracted geothermal and solar portfolio in the US to Ormat Technologies.
