The Generation of the Future: Our Vision towards 2030

In the Enel Group’s Global Power Generation business line, we are working to create a new and better future for everyone.

The energy sector is undergoing a revolution that is radically changing the way in which we produce and use electricity. Not only that, the dramatic events of the last year have opened people’s eyes to the need for radical change in humanity’s attitude towards the environment. Even a publication like the British weekly The Economist, which is read by political and business leaders the world over, recently called for a complete transformation of the energy system. In this context, the Enel Group’s Global Power Generation business line is working to create the Generation of the Future. Our aim is to create a cleaner, sustainable and innovative generation matrix all around the world between now and 2030. Here I want to explain how we intend to bring this about. Personally speaking, much of my career with the Enel Group has been spent in the renewable energy sector and I have witnessed first-hand its evolution from a marginal to a mainstream position. Nevertheless, I believe that we must constantly “renew renewables” if they are to assume the massively important role that is now required of them.  

Enel Green Power, the Renewables Super-Major

With 49 GW of managed capacity, Enel Green Power is now the global private leader in terms of renewable managed capacity. We will almost triple this figure by 2030, not only consolidating our global leadership but also creating a super-major in the renewable sector.

As was explained during the Enel Group’s Capital Markets Day in November, we are going to take two simultaneous routes. The first is our traditional “Ownership” business model, in which the Group will invest 150 billion euros over the next 10 years. Nearly half of this amount will be devoted to Global Power Generation, with renewables totaling around 70 billion euros. The second is the “Stewardship” model, which aims to combine an investment of 10 billion euros by Enel, together with investments of 30 billion euros by third parties in partnership with Enel mainly related to renewables, alongside fiber, e-transport and flexibility. We target to achieve around 145 GW, of which 120 will be with the Ownership model and roughly another 25 with the Stewardship model.

Energy storage  

Two elements will help us to transform the classic renewables that have now become mainstream technologies. The first is energy storage, which is one of the major themes in the renewable energy debate. Energy storage is already well under way at our plants in North America, for example. Last year we began work on two solar and storage projects: the Lily Solar and Azure Sky in Texas. The latter will supply energy to the Home Depot, through a Power Purchase Agreement (PPA). The integration of Battery Energy Storage Systems (BESS) is providing a competitive decarbonization offer. Batteries are key enablers of system flexibility and reliability, and their use in the hybridization of power plants will enable us to achieve completely renewable and sustainable generation. We will be in a position to replace the thermal systems that are currently essential to the stability of the network. We expect that around 30% of our plants will be hybridized with battery storage in 2030.

Green Hydrogen

The second element is green hydrogen. This technology is still in its infancy, but it has great potential when it comes to decarbonizing the so-called “hard-to-abate” sectors such heavy industries, shipping and aviation. We aim to take production from essentially zero today to more than 90 ktons by 2030. We intend to install electrolyzers – which use zero emission electricity to split water into hydrogen and oxygen – at our solar and wind farms to produce hydrogen to either store energy or to sell to our clients. We plan to do so in Chile, Italy, Spain and in the United States in the near future, with important partners who share our vision and conviction that the only green hydrogen is the type that is produced with renewables.

Accelerating the exit from coal

Our latest strategic plan brings forward our exit from coal-fired generation to 2027 from 2030 and this will require an extraordinary effort to find new alternative uses for our coal generation fleet. The share of coal has already halved since 2017, falling to about 8.9 GW this year from 16 GW in 2017. This is a remarkable, if not unique, achievement, and we will continue along this path with emission reduction targets that have been given sTBi certification in line with the 1.5 degree scenario set out in the Paris Agreements. The current plan is to achieve full decarbonization by 2050. Closing down coal-fired power plants also entails having to retrain or “reskill” our people and promote a virtuous conversion of the whole value chain (including suppliers and contractors) and, needless to say, this is something we are also doing. New and meaningful roles can be found for people as well as for resources.

A new lease of life

The exit from coal entails redesigning and repurposing power plants to give them a new life, and one that is both sustainable and circular. We have launched open contests in Italy and Spain to transform coal-fired power plants into increasingly modern and efficient sites. These projects combine energy production from natural gas and renewable sources, as well as batteries for energy storage or even new areas for other uses. They involve third parties under the umbrella of our successful Futur-e program. This has a number of different types of projects, including the energy conversion of some of our power plants.

Future-e also entails giving power plants a completely different role. The Porto Tolle power plant in Italy’s northeastern Veneto region, for example, ceased operations in 2015 and the site is being transformed into an exciting sports and tourism complex. The project is being developed in collaboration with local stakeholders in order to benefit the community as much as possible. And our repurposing projects don’t only concern the sites: their components are also re-used in line with the principles of the circular economy. As with renewable energy itself, we see the circular economy as being a key element in the green recovery, which will lead the way as the world economy comes back to life after Covid.

Innovation for sustainable growth

All the ideas I have talked about refer to sustainable growth to produce sustainable energy for communities all around the world. This growth demands a new mindset for all of us at Global Power Generation, a new way to do business. It’s more creative, more innovative and even more open to collaboration with others, to sharing our knowledge and learning.

We can’t do this alone. There are key elements that run through all of our activities, and openness is their central feature. We call this approach Open Power and we see it as a new way of overcoming some of the greatest challenges facing the world. This can be done by combining attention to sustainability with the best in innovation. Sustainability will not develop without continuous innovation, and for us innovation is meaningless unless it is geared towards sustainability. Indeed, the Enel Group has even coined a new term, “Innovability,” a “portmanteau” word that combines innovation and sustainability.

Inspiration and innovation can come from anywhere. From inside and from outside. We use modern collaboration and crowdsourcing platforms that allow everyone to contribute – students, innovators, startups, or a global multi-national industrial partner – we set challenges looking for smart solutions because we know we need to be agile in order to reach our business objectives. That agility will also enable us to change course as circumstances change.

These initiatives also promote circular economy principles, not only for converted coal-fired and other thermal technologies plants but also for renewable energy plants, when they reach the end of their life cycle. Our crowdsourcing platform Open Innovability has, for example, launched two challenges in order to gather new ideas in this respect: one is in order to find innovative ways to recycle and reuse wind turbines, the other is to produce insulation material for buildings from decommissioned blades.

Creating shared value

 Another key concept both for us and for the energy transition is the creation of shared value. By this I mean the idea that the purpose of our work isn’t only to generate profits for our shareholders but to create something of lasting value for the entire community. Being mindful of the slogan “walk the talk”, I think that the best way to talk about shared value is through examples. An interesting one comes in the form of agrivoltaics. In the United States, at Aurora Solar, we employ an innovative model combining energy production and the protection of the environment, to provide vital ecosystem services at the same time. For example, we have opened some of our installations to local shepherds. The Aurora system perfectly embodies what shared value means: doing good for the local community, the company, and the environment by applying circular, participative, innovative and practical actions. To give another example, we looked for innovative solutions aimed at integrating agro-zoological activities within ground-mounted photovoltaic (PV) power plants in Italy, too.

People at the Center of the Just Transition

Creating shared value is about working with local communities and people, who are both the beneficiaries and the creators of the energy transition. People make up Global Power Generation, where we concentrate on hiring the best, independently of their age or sex. People are at the center of everything we do. Without their buy-in and their expertise we cannot support the energy transition. 

People are also central to achieving the United Nations’ 17 Sustainable Development Goals, or SDGs, something to which we, like the rest of the Enel Group, are deeply committed. And this is not just a case of paying lip service to noble ideals: according to the Group’s latest plan, which was presented at Capital Markets Day, more than 90% of our consolidated investments will be in line with the UN’s SDGs.

To flourish in the new environment, to lead the change, we have to get closer to our stakeholders, to be more aware of their needs and concerns so that we can act more quickly to seize opportunities as they present themselves, or to change course where necessary.

Talking about the energy transition is not, however, enough. We are fully aware that it should be sustainable in the long term. This means that we have to avoid creating new forms of inequality. That is why the concept of a Just Transition that leaves no one behind has come to the fore.     

Our plans are ambitious, but I’m a firm believer in the idea that what may seem impossible today is eminently achievable tomorrow, that what is now seen as science fiction could become reality in the future. Let’s not forget that, only a few decades ago, most people rejected renewable energy as an unrealistic pipe dream and yet now it’s accepted as being essential to the future of life on Earth. 

At Enel, we are committed to transforming our world. To create a better one for everyone: more inclusive, innovative and sustainable. And we are going to get there through the Generation of the Future that we are creating day by day with our work. Let’s do this together.