Enel Brings Forward Net Zero Target by 10 Years to 2040

Announced in its ‘2022 – 2024 Strategic Plan’, Italian electricity and gas manufacturer, Enel has brought its target for net zero emissions forward by ten years, from 2050 to 2040, and raised its 2030 renewables and battery storage capacity target to 154 GW, – up from the previous target of 145 GW – which will include 32 GW of wind power.

129 GW in renewable capacity will be directly owned by Enel, with a further 25 GW that the company will manage, but not own with a significant stake.

The plan will involve the mobilization of $235.7 billion within the coming decade, of which $190.8 billion will be utilized directly by Enel, with $45 billion to be used through third parties, as the company aims to generate and supply power generated exclusively from renewable sources, particularly solar and wind.

“Its implementation is enabling us to step up from the previous decade of renewable energy discovery to the current decade of electrification. We are accelerating growth across the business, bringing value to our customers who are at the core of the group’s strategy, a value which translates into a projects reduction in their energy spending, while increasing their electricity demand by 2030,” stated Enel CEO and GM, Francesco Starace.

As one of the world’s several green energy supermajors, Enel’s new targets will see the company trace more than 80% of its capacity to renewables, – which is expected to result in up to 40% reductions in energy spending – while increasing its ordinary earnings before interest, taxes, depreciation, and amortization at a 5-6% compounded annual growth rate (CAGR), while the group’s net ordinary income is projected to raise to 7% from 6% CAGR.

In its plan, the company confirmed its plans to exit from coal entirely by 2027 and indicated its target of bringing online 15 GW of new clean energy capacity per year by the end of the decade.

“The pioneering work carried out by all Enel colleagues and the advanced digital transformation of the group will allow us to address the evolution of customer needs during this decade,” Starace concluded.

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Matthew Goosen

Matthew Goosen

Matthew Goosen is a Video Editor and Content Writer at Energy Capital & Power. He holds an Honours Degree in Film and Media Studies at the University of Cape Town and is currently undergoing his Masters Degree. Born in Pretoria and raised internationally, he has been living in Cape Town since 2013.

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