European energy giant unveils investment strategy that will see it invest €160bn directly in green infrastructure, while leveraging a further €30bn from other parties
Italian energy giant Enel has outlined plans to invest €160bn in decarbonisation and electrification efforts over the next decade, as it works to become a net zero power producer by 2050.
The firm this week unveiled a sweeping new investment strategy that revealed plans to invest €160bn directly in new low carbon infrastructure, while catalysing a further €30bn of investment from other parties, bringing total spending to €190bn by 2030. The investment will support a goal to cut carbon emissions from the company by 80 per cent against 2017 levels.
Around €70bn of the total investment will be focused on renewable power generation, the firm said, with the outlay expected to lift its installed capacity to 120GW, from 45GW today. Enel CEO Francesco Starace told investors that "we plan to strengthen our position as a super major in the renewable sector", with a view to generating 80 per cent of its power from green sources by 2030.
A similar amount will be invested in infrastructure and network upgrades, the firm added, including digitilisation technologies, which should see more than 90 million end users install smart meters by the end of the decade.
Starace also told investors the company would "pursue M&A mainly in distribution grid", mentioning India as a key investment opportunity over the next three years.
The ambitious new investment strategy builds on previously announced goals from the energy giant, which earlier this year announced plans to expand its green hydrogen capacity to more than 2GW by 2030, focusing on the US, Chile, and Spanish markets, and pledged to phase out coal power from its portfolio earlier than expected in 2027.
Enel's strategy, announced yesterday, further demonstrates how Europe's biggest utility firms are stepping up investments in green technologies in anticipation of tightening rules and shifting consumer demand as the race to tackle the climate crisis gathers urgency.
Earlier this month, Spanish giant Iberdrola laid out plans to invest €75bn in renewable energy projects and network upgrades by 2025, aiming to almost double renewables capacity to 60GW. The company said it would increase investment in its home market of Spain by 60 per cent to nearly €14.3bn, with more than €7bn earmarked for renewables projects and over €4.5bn for networks. The US and UK, where Iberdrola owns ScottishPower, are set to secure €34bn of the planned investment.