• Historic Investment Increase: Endesa boosts its 2025-2027 strategic plan investment by 8%, marking a record €9.6 billion to support energy transition and electrification goals.
• Focus on Grids and Renewables: 42% of investment (€4 billion) targets grid modernization, while €3.7 billion redirects to hydroelectric and wind power over solar assets.
• Financial Strength and Growth: Endesa anticipates a €5.9 billion EBITDA by 2027, with a net ordinary profit up to €2.2 billion, supported by stable dividends and increased renewable capacity.

Endesa, one of Spain’s leading energy companies, has announced a record-breaking €9.6 billion investment under its 2025-2027 strategic plan. The move comes as the company aligns with the ambitious electrification and decarbonization goals outlined in Spain’s updated National Energy and Climate Plan (NECP). The new strategy prioritizes grid modernization, renewable energy investments, and financial sustainability to capitalize on the opportunities presented by the energy transition.

José Bogas, CEO of Endesa, emphasized the significance of this moment:

“We find ourselves at a pivotal moment for achieving the energy transition objectives set for 2030. Regulation must support us in achieving them. This new strategic plan lays the foundation for capitalising on the greatest opportunities possible in this context. And it grants Endesa substantial financial capacity to expedite and enhance the necessary investments.”

Investment Priorities

1. Strengthening the Electricity Grid:
Endesa will allocate €4 billion to grid improvements, a 45% increase over the previous plan. This investment focuses on:

• Expanding capacity to meet rising electricity demand.
• Enhancing service quality and digitalizing infrastructure.
• Supporting the integration of renewable energy and new connections.

The regulated asset base is expected to grow by 6%, reaching €12.1 billion by 2027. To support these efforts, Endesa is advocating for regulatory reforms, including higher returns on grid investments (targeting 7.5%) and streamlined administrative approvals.

2. Pivoting to High-Value Renewable Assets:
Renewables account for 39% of total investment (€3.7 billion). Endesa is shifting focus from solar to hydroelectric and wind power, acquiring 626 MW of hydro capacity in Aragón and developing wind projects. Renewable capacity will expand by 32%, adding 3 GW and bringing the total to 13.1 GW by 2027.

The company is also investing in battery storage and optimizing existing assets, such as the Aldeavieja wind farm, to enhance efficiency and reduce costs.

3. Expanding Customer Base and Sales:
Endesa plans to increase its competitive market customer base by 6%, reaching 7.1 million by 2027. Investments of €900 million will support digitalization and value-added services, promoting electrification and long-term customer loyalty.

Financial Highlights

Endesa anticipates robust financial performance under the new plan:

• EBITDA is projected to grow to €5.9 billion by 2027.
• Net ordinary profit is expected to reach up to €2.2 billion, a 7% annual growth.
• Net debt will rise to €10-11 billion, driven by increased investments and dividend payments.

The company has also enhanced its dividend policy, guaranteeing a payout ratio of 70% until 2027, with dividends rising to €1.2 per share in 2024 and targeting €1.5 per share by 2027.

Advancing the Energy Transition

Aligned with its 2040 Net Zero target, Endesa remains committed to sustainability:

• Carbon Emissions: CO₂ emissions are set to drop by 65% by 2024 (compared to 2017 levels) and 74% by 2030.
• Coal Phase-Out: The last coal power plant in the Balearic Islands will close in 2027.
• Renewable Generation: Endesa aims to generate and sell 100% renewable energy by 2040 while phasing out gas retail operations.

Capitalizing on Opportunities

The updated NECP highlights new industrial demand and electrification as pillars of Spain’s energy strategy, with a projected 55 TWh increase in electricity demand by 2030. Endesa views this as an opportunity for economic growth, supported by:

• The competitive cost of renewable electricity in Spain.
• Strategic positioning to attract data centers and industrial investments.

Grid enhancements and regulatory reforms will be essential to accommodate these developments. Endesa’s leadership in the energy transition, supported by its financial strength and strategic investments, positions the company to thrive in a decarbonized future.

Bogas concluded,

“Ultimately, we are in the best sector at the best possible time.”

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