Enel to Decarbonise Power Slate Further

Italian power giant Enel has provided guidance about its 2019-2021 strategic plan’s focus on increasing renewable generation capacity worldwide at the expense of fossil fuels.

Its November 20 presentation outlined how the global group’s strategy is to add 11.6 gigawatts of renewable capacity, while reducing its thermal power generation capacity by 7 GW, between 2018 and 2021. This would increase its overall group-wide generation capacity from an estimated 89.4 GW in 2018 to a forecast 93.4 GW in 2021, while Enel’s share of emission-free (including nuclear) power production is forecast to increase further over the same period from 48% to 62% (see graphic below).

NGW asked Enel what type of thermal power plants would be closed and where. An Enel spokesperson replied November 22: “The reduction in thermal generation capacity refers mostly to coal and to a lesser extent to gas plants. No further details on specific plants are available at this stage.” He confirmed that the figures above refer to the whole of Enel, rather than just Italy, and so include Enel's 70.1%-owned Spanish subsidiary Endesa (which released its own strategy outlook November 21) as well as other major subsidiaries in Brazil, Russia and elsewhere (Banner photo shows wind turbine assembly in Brazil, courtesy of Enel)

Enel said its group pre-tax earnings (Ebitda) is planned to reach €19.4bn in 2021 ($22.1bn at current exchange rates) from an estimated €16.2bn this year, an increase of 20%.

It also forecasts gross capital expenditure during the 2019-21 period of €27.5bn, an increase of 12% over its year-ago three-year plan, to be allocated thus: 42% to renewables, 40% in networks, 9% in thermal generation, 5% to its retail businesses and 4% in innovation, electromobility and digitisation.

Enel was ranked as the eighth largest generator worldwide by installed capacity (2017) at 85 GW, according to the 'World Energy Outlook 2018' recently published by the International Energy Agency, which also ranked it as the second largest based in Europe (behind EDF's 129 GW, but ahead of Engie and Iberdrola with 59 GW and 48 GW respectively).

The Spanish government this week said Spain should have 100% renewable generation by 2050, adding it will spur companies to install at least 3 GW/yr of new solar/wind capacity  during the coming decade. 

Source: Enel