Enel Russia’s Wind CAPEX to Amount RUB 22.6 Bln in 2021-2023
Enel Russia presented its Strategic Plan for 2021-2023. The main focus is on the completion of wind farm projects which are now under construction with most of them scheduled for commissioning as part of the current Strategic Plan for the period 2020-2022.
Cumulative capital expenditures during 2021-2023 will amount to 36.7 billion roubles, which is 7% decrease compared to 2020-2022. At the same time, the bulk of the costs – about 22.6 billion roubles – will be directed to wind projects. About 6.9 billion roubles will be spent on upgrading equipment for gas power plants.
About 7.2 billion roubles will be spent on managing current assets, mainly on operational efficiency (5.1 billion), on-the-job-safety and other areas (1.5 billion), and environmental initiatives (0.6 billion).
EBITDA is expected to reach 12.4 billion roubles in 2023, increasing by an average of 29% within the plan period from the 7.5 billion roubles planned for 2021. Notably, the impact of renewable energy projects on EBITDA will be at 39% by the end of the period, according to the new Strategic Plan.
The structural change in gross margins and EBITDA that will be provided by increased payments for wind farms’ capacity delivery (under the RES CDA programme) in the period, following the end of the established thermal capacity delivery programme in 2020, will result in a more sustainable power mix.
Net profit is expected to reach 3.9 billion roubles in 2023 with an average annual growth rate of 15% compared to the forecast of 3 billion roubles in 2021, despite the increase in financial costs associated with the construction of wind farms.
Net debt will continue to gradually increase as investments in the existing projects continue and will reach approximately 42.2 billion roubles in 2023. The largest growth is planned for 2021, when net debt will rise to 30.5 billion roubles, mainly due to the need to accelerate investments to support the transformation of the company’s business portfolio.
The main changes in terms of installed capacity reflected in the plan for 2021-2023 include, among others, the commissioning of the 71 MW Rodnikovskaya wind farm, Stavropol Krai. The company also plans to put the Azovskaya wind farm, Rostov Oblast, into commercial operation in 2021 (instead of 2020 as previously planned). The wind farm in the Murmansk Oblast is scheduled to come online in 2022 (instead of earlier declared 2021).