Enel Pins Hopes on New Technology

The digitalisation of assets, renewable energy growth and customer base growth are some of the key objectives of Enel's strategic plan through 2017-2019.

In a presentation in London November 22, CEO Francesco Starace said that the “digitalisation of assets is the main area of investment” over the period, with Enel to invest some €4.7bn ($5bn), leading to a 9% improvement in cash costs, reaching the target of €6bn in 2019 against €11.6bn in 2016.

For renewables, Enel aims to increase installed capacity by 6.7 GW in the next three years, further widening the existing 36 GW of renewable assets, and expects it to remain the “backbone of utility generation” moving forward, Starace said.

CEO Francesco Starace

(Credit: Enel)

Another strong focus is towards increasing its customer base. Enel plans to be “customer long in the medium-term,” Starace explained, adding that in a low commodity price environment it could benefit from a customer base exceeding generation capacity. On the back of this strategy, the net production target is set to rise by just 2 TWh to 64 TWh in 2019 against 2016 figures, while conversely the energy sales target is set to rise from 52 TWh to 94 TWh. 

On the back of the expiration of the regulated market framework in Italy and further liberalisations expected in Latin America, Enel aims to increase its retail Ebitda by 20% to €3bn in 2019, 40% higher than the previous plan. Free gas and power customers are set to increase from 17.5mn in 2016 to 34mn in 2019.

Disposals will mainly be related to thermal generation assets, renewable assets and “minor assets in Latin America,” Enel said, without citing specific assets.

Commenting on Enel's US LNG supply contracts, he stressed their “flexibility” will allow it to “capture the best price under any scenario.”

He added for US LNG supplies – mostly related to gas deliveries out of Corpus Christi – the first cargo delivery, from Sabine Pass, is expected “early next year." It is due to take 4.3bn m³ by 2021.

Beatrice Bedeschi

For more on Enel's gas supplies, contracts and strategy, see the next issue of NGW magazine, out November 30.