Enel Group: How Investments in Grids Will Support the Energy Transition While Creating Value for All Stakeholders

In Enel’s 2025-2027 Strategic Plan, €26 billion ($27.4 billion) of investments—out of €43 billion ($45.4 billion)—will be in grids to support the acceleration of the energy transition and create further value for shareholders and stakeholders.

In the coming years, global electricity consumption is expected to keep growing, reaching a total of 32,000 TWh in 2030 versus 25,000 TWh in 2023 (+25%)*.

The electrification of industrial and domestic uses, the rise of electric mobility and the increase of power consumption of data centers will be some of the main reasons for this growth.

In this scenario, renewables are expected to grow massively to match the increasing demand.

Distribution grids will be the real enabler of this transition. They will require greater investments to host the growing renewable capacity and increase resilience against extreme weather events that are more frequent and intense due to climate change.

The 2025-2027 Strategic Plan

“The managerial actions carried out in 2024 allowed us to achieve all the targets we announced to the markets and to strengthen the Group’s financial structure. We can therefore begin a new chapter of growth that will create further value for shareholders and stakeholders,” says Flavio Cattaneo, Enel Group CEO.

In Enel’s 2025-2027 Strategic Plan, presented on November 18 in Milan during the 2024 Capital Markets Day, the Group confirmed its strategic pillars:

• Profitability, flexibility and resiliency to generate value through selective capital allocation that optimizes the risk/return profile.
• Efficiency and effectiveness with a continued optimization of processes, activities and portfolio of offerings, strengthening cash generation and developing innovative solutions.
• Financial and environmental sustainability to maintain a solid structure, ensuring the flexibility required for growth and addressing the challenges posed by climate change.

Over the next three years, Group total gross capex amounts to €43billion ($45.4 billion), around €7 billion ($7.4 billion) more than the previous plan. The Group expects to allocate €26 billion ($27.4 billion) in grids, €12 billion ($12.7 billion) in renewables and around €2.7 billion ($2.9 billion) in customers.

As a result of its strategy, the company revised upwards its dividend policy: shareholders will receive a fixed minimum dividend of €0.46 ($0.49) per share increasing from €0.43 ($0.45) set in the previous plan, with a potential further upside up to a 70% payout on net ordinary income.

Grids’ pivotal role to enable the energy transition

In the 2025-2027 period, Enel’s investments in grids will mark a significant increase of 40% compared with the previous plan, to improve grid quality, digitalization and resilience to weather events.

“Distribution grids are the enabling factor for a clean and secure energy transition. Our effort will be to host growing renewable capacity, constantly improving the quality of service for our customers, increasing our emergency response capacity, and the resilience of the network, which is challenged by extreme weather events,” says Gianni Vittorio Armani, Head of Enel Grids and Innovability.

Out of the total €26 billion capex dedicated to Grids, Enel plans to invest 78% in Italy and Spain, countries characterized by regulatory frameworks that can support investments, while 22% will be addressed to Latin America. Specifically, the Group plans to invest over €16 billion ($17 billion) in Italian grids, approximately €4 billion ($4.2 billion) in Iberia and about €6 billion ($6.3 billion) in Latin America.

Reducing risk and increasing visibility

“As a result of this strategy, between 2025 and 2027, Group cumulated Ordinary EBITDA is expected to exceed €70 billion ($73.9 billion), around 90% of which is set to result from regulated or secured activities, further reducing risks and enhancing visibility on the Group’s future results,” says Stefano De Angelis, Enel Group CFO.

With higher investments in grids, Enel will contribute not only to fostering the energy transition but also to improving its risk-return profile thanks to a regulated business for which the Group expects a 7.2% blended return over 2025-2027 and to account for about 40% of the Ordinary EBITDA in 2027.

This way, the growth will benefit both shareholders and stakeholders. In fact, higher investments in grids will increase EBITDA coming from regulated activities, offering unprecedented visibility on future delivery. The results achieved in 2024 combined with the new strategic plan allows the company to begin a new chapter of sustainable and profitable growth.

^*Source: IEA World Energy Outlook 2024 (STEPS scenario)