Italian energy company Enel is accelerating investment in renewables capacity with plans to install more than 14GW over the 2020-2022 period.
The 14.1GW goal, up 22% from the 11.6GW during 2019-2021, was outlined in the company’s strategic plan 2020-2022 released today.
On average Enel will install 4.7GW of clean power capacity a year between 2020 and 2022.
Some €14.4bn will be invested in renewables during the period, accounting for half of the company’s planned investments.
Enel said it envisages 5.4GW of new renewables to replace conventional generation in Italy, Spain and Chile, at a total cost of €5.6bn.
A further €4.7bn will deliver 5.1GW mainly in Brazil and the US, driven by power purchase agreements with commercial and industrial customers.
In new markets, Enel plans around 3.6GW of new capacity, of which 1.1GW will come from investments of €1.2bn and 2.5GW through joint ventures.
Enel said about 60% of the 14.1GW is secured, with the remaining 6GW “more than three times covered by the roughly 20GW of projects with expected commissioning between 2020 and 2022”.
The company added: “A 90GW total gross pipeline gives significant confidence that the group will reach its targets and maintain visibility beyond the plan period.”
Coal capacity and production is expected to fall by 61% and 74%, respectively, between 2020 and 2022.
The share of renewables on total capacity is due to reach 60% in the three years, increasing CO2–free production to 68% in 2022.
Enel’s investments in decarbonisation are expected to contribute €1.4bn to the group’s EBITDA growth.
A further €11.8bn will be invested in digitalisation and automation of grids, with €1.1bn going to Enel X for the ongoing deployment of services and infrastructure to support decarbonisation and electrification.
Total capital expenditure set out in the new strategic plan is €28.7bn, up from €25.9bn in the previous plan.
Enel’s overall investments will lead an EBITDA growth of 13% over the period, to €20.1bn in 2022 from €17.8bn in 2019.