The Extra Mile On Industrial Performance
The Extra Mile On Industrial Performance
ENEL decreases its investment in renewables for the next 3 years
The European Union adopted a binding target for the share of renewables in the EU energy mix to be 42.5 percent by 2030. However, the growth in interest rates, the GDP decrease in the Eurozone (which brought a reduction of Power demand), an increase in gas price volatility, and finally an increment in the LcoE of renewables due to the rise in supply costs and cost of financing, has forced ENEL to review its investment in renewables and a reassessment of its key business drivers for the next three years.
As a result, ENEL is decreasing EUR 1,6 billion ($1,75 billion) their gross capex:
The multinational utility has just set EUR 35.8 billion ($39.05 billion) in capital expenditure for the next three years with “selective investment” in renewable energy generation. Even with the reduction in the CAPEX, ENEL is committing a huge budget to make the energy transition happen.
Taking advantage of its integrated utility position, the 2024–26 CAPEX includes:
- EUR 18.6 billion ($20.28 billion) for grid upgrading and expansion
- EUR 12.1 billion ($13.2 billion) for investments in onshore wind, solar, battery and repowering across Europe and the Americas.
- Enel targets to add about 13.4 gigawatts (GW) of operational renewable capacity during the period, out of 450 GW in the pipeline. In 2026, the Group’s renewable capacity is expected to reach approximately 73 GW from around 63 GW estimated in 2023
- The expected growth in renewable generation also entails investment in battery storage “to balance demand with supply”.
- While adding new wind and solar capacity, Enel will also invest in repowering “to increase plant efficiency and reduce generation costs”.
“… renewable investment decisions will be more selective, diversifying technologies and countries, improving returns and reducing risks, also leveraging on partnerships”, CEO Flavio Cattaneo said.
Several CCGT power plants of ENEL are using the ADEX Technology to improve energy efficiency, flexibility and dispatchability, leaving more room for renewables in the mix. ADEX will continue helping ENEL to adapt their power plants to the challenging requirements of the new Electricity Market.