Spain’s Endesa Plans to Invest $10.14 Billion Until 2027

Endesa, Spanish leading company in electricity sector and the second-biggest operator in the electricity market in Portugal, on Tuesday expects a total increase of 8% in investment, reaching $10.14 billion, which represents a historic record for the company since it began operating within its current operating area (Iberian Peninsula) in 2014.

Announcing its new 2025-2027 strategic plan, which arrives at a pivotal moment in the energy transition journey and aims to fully leverage the opportunities and address the challenges arising from this process, Endesa said that the plan provides an insight into the company’s ambition for the upcoming years and the extensive opportunities it identifies in the Iberian energy sector.

Some 42% of this investment will be allocated to the distribution network, with a growth of 45% compared to the previous 2024-2026 plan. In turn, of those 42%, it will be used to meet the objectives of the to meet the growing demand for new connections, which can currently be rejected due to lack of capacity.

Another 25% will be used to improve the quality of service, optimizing the network structure and increasing remote operations of medium and low voltage lines, and the remaining 30% will go to digitalisation and modernisation.

The document, released as the company marks 80 years of supporting Spain’s socio-economic development, focussed on a key theme: advancing clean electrification, centred on emission-free generation sources, as a means to address the primary challenges facing the energy sector across Europe.

The document, presented to the investor community by the CEO, José Bogas, and the Chief Financial Officer, Marco Palermo, also considered the key figures and objectives outlined in the updated National Energy and Climate Plan (NECP) presented by the Spanish government last September.

This document includes an investment forecast of $325.25 billion, 82% of which must be carried out by the private sector.

Essentially, this new NECP is notable for its emphasis and increased ambition on the electrification of the economy (which will account for 17% of this investment, ten percentage points more than in the previous NECP); aggressive growth in new solar and wind capacity, as well as storage; and a strong commitment to an electricity grid with greater capacity and coverage.

In more detail, the 55 TWh of new electricity demand outlined in the new NECP to reach 307 TWh by 2030 (excluding the demand for producing green hydrogen) is supported by two main pillars.

First, a fourfold increase in electricity consumption in the transport sector, which necessitates a commitment to developing a robust recharging grid. And secondly, an anticipated 48% increase in industrial demand, which must also be accompanied by the development of the electricity grid required to support it.

Benefits of Clean Energy

The competitive price of electricity generated from clean sources is an advantage for the country. Specifically, of the 50 GW of new capacity that has requested access to the grid at a national level (of which 16 GW comes from data centres), approximately 40% has been granted access. This would represent more than 30 TWh of new electricity demand by 2030, assuming a reasonable degree of success in the development of these projects.

The NECP therefore anticipates that investment in grids (distribution and transmission) will reach $55.33 billion from 2021 to 2030, necessitating a threefold increase in the annual investment volume for both types of electricity grids during the remaining years of this decade.

José Bogas has outlined the key milestones of the plan, the company, and the current state of the energy sector.

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