Developer ERG is growing its renewables portfolio with the aim of achieving an installed capacity of approximately 5GW in 2028.
To reach this goal ERG is targeting 4.5GW in 2026, from an installed capacity of 1.2GW today, and the projects include onshore wind, solar and storage.
ERG will focus on growth in the countries where it is already present and the US market is a central element of its plan, where ERG aims to achieve 500MW to 700MW of installed renewables capacity.
The group is applying “Value over Volume”, a new competitive growth strategy in a context of extreme volatility to reach the installed capacity targets and a value creation of 200bps-400bps on the WACC.
This will require a selective approach to investments based on the projects available within the pipeline.
ERG stated: “A solid, visible pipeline that has grown to 5GW between organic development, greenfield, repowering and co-development agreements to better respond to market challenges.
“M&A activity remains a flexible axis of the strategy for accelerating growth.”
Solar and onshore wind are supported by the development of storage and hybridisation projects to increase the flexibility of the asset portfolio.
EBITDA is expected in the range between €600m and €650m in 2026.
Chief executive Paolo Merli said: “After the successful completion of the group’s industrial transformation as a renewable operator, the new Business Plan projects us into a new phase that, on the one hand, consolidates the industrial positioning achieved, and on the other, continues to develop the asset portfolio.
“Growth will be pursued through a strategy that we have called “Value over Volume”, an extremely selective approach in the choice of investments, through organic development and M&A, with more challenging IRR targets but consistent with the current market context, marked by highly volatile prices and regulatory uncertainty.
“The goal is to reach 4.5GW of installed capacity by 2026.”
“Sustainability and financial soundness will continue to be the foundations on which we will build our path for growth and value creation to inspire change towards the energy of the future.
“We have introduced a more rewarding remuneration policy for our shareholders, guaranteeing a minimum distribution of €1 per share but with the flexibility to increase to €1.3 if the results of the year allow it.”