40% will be aimed at increasing the renewable generation park, with the goal of reaching more than 18,000 megawatts (MW), with the incorporation of more than 10,000 additional MW.
Endesa plans to invest €25 billion between 2021 and 2030 to take advantage of the opportunities arising from both the National Integrated Energy and Climate Plan (PNIEC), the government’s roadmap for tackling the energy transition over the next decade, and the post-COVID recovery funds that will come from the European Union, according to the company’s vision for 2030 presented as a novelty as part of the update of its 2021-2023 strategic plan.
Of this energy investment effort, 40% will be used to increase the renewable generation park, with the goal of reaching more than 18,000 megawatts (MW), with the incorporation of more than 10,000 additional MW to the group’s operations by the end of 2020.
Meanwhile, another 40% will go to the distribution network, which will increase the regulated network asset base from 11,600 million euros to 13,000 million euros by the end of the period.
With this investment plan, Endesa aims to achieve 80% CO2-free production by the end of the decade.
The decarbonisation process will therefore accelerate compared to the previous plan, which envisaged that 140 grams of carbon dioxide would be emitted per kilowatt-hour of electricity produced by 2030. A threshold that is now reduced to 95 grams, 80% less than in 2017.
End of coal in 2027
The company led by José Bogas also plans to further accelerate 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, by 2027.
As part of its strategic plan for 2021-2023, Endesa will increase its investment volume by 25% over the next three years, compared to the 2020-2022 strategic plan, to Euro 7.9 billion.
Of this amount, Euro 3.3 billion will be allocated to increasing the renewable energy generation park, an amount which is 20% higher than in the previous plan.
With this investment, the company will reach 11,500 MW of solar, wind and hydro power by the end of 2023. That is, around 50% more than the 7,700 MW it will have at the end of the current financial year 2020.
12% more profit by 2023
With regard to financial figures, the energy company expects to increase its gross profit (Ebitda) by 10% over the period, from an estimated 3.9 billion euros in 2020 to 4.3 billion euros in 2023 as a result of this 25% increase in investment to 7.9 billion.
Specifically, Enel Green Power España, Endesa’s renewables subsidiary, will double its contribution to Ebitda from Euro 300 million to Euro 600 million between 2020 and 2023. A further 100 million euros in EBITDA will come from the distribution business, which will increase its gross profit from 2 billion euros to 2.1 billion euros.
For its part, the company expects its net profit to rise from an estimated 1.7 billion euros in 2020 to 1.9 billion euros by the end of 2023, with a 12% increase over the period.
Payout of 70%.
With regard to the dividend policy, the group has confirmed a payout of 100% in 2020, 80% in 2021 and 70% in 2022, extending this percentage to 70% in 2023. The energy company stressed that «it is thus adapting its dividend policy to a much higher growth profile resulting from this strategic plan».
The group also announced the distribution of an interim dividend of 0.70 euros gross per share on account of the results of the 2020 financial year.
Source: El Confidencial.