Climate neutrality by 2050 – updated Enea Group Development Strategy

Enea’s Green Change has been put at the core of the updated Enea Group Development Strategy. The utility conglomerate has realigned its focus to pursue sustainable transformation objectives in order to boost the Group’s value growth. Enea has decided to develop renewable energy sources (RES). It will specialize in operating energy storage facilities as a technology of key significance for ensuring RES stability and solidifying energy security.

The Enea Group Development Strategy until 2030 with an outlook to 2040 is well aligned with the country’s energy transformation goals. In the business environment context, among the primary objectives of the Enea Group Development Strategy is to spin off from its structures any assets related to the generation of electricity in conventional coal- and lignite-fired units.

New Enea – on the path towards the Green Change

“As a responsible entity operating in the power sector, we will run our business in a manner that minimizes our impact on the natural environment. The overriding objective of the Group’s updated strategy is “Enea’s Green Change”. We perceive it as a sustainable transformation of the Group building leading to an increase in shareholder value, while pursuing a long-term goal of achieving climate neutrality by 2050,” said Paweł Szczeszek, President of the Enea Management Board.

For the power sector, the coming years are going to bring rapid changes and transformation, which in Poland poses a particularly tough challenge. We have updated our Strategy not only in an effort to fit the new realities better, but also in order to reinvent Enea in the quickly evolving power sector,” added Paweł Szczeszek, President of the Enea Management Board.

Enea’s new mission is a reasonable and efficient implementation of the transformation of the Polish power sector. Reliable products and services will be provided to customers while building lasting relationships based on respect for the natural environment and shared values. According to its vision, Enea is a leading supplier of integrated products and services, setting new trends during energy transition.

Enea intends to achieve climate neutrality by 2050 by investing in the development of renewable energy sources based on state-of-the-art technologies. The increase in the installed RES capacity will be achieved through acquisitions, the development of own projects and in collaboration with business partners.

“By 2030, the Enea Group’s installed capacity in renewable energy sources will increase by roughly 1.5 GW, followed by another 2 GW by 2040. In combination with the spin-off of coal- and lignite-fired assets, this will significantly reduce our CO₂ emissions by 2030,” says Paweł Szczeszek, President of the Enea Management Board.

Investments, key directions of the Group’s growth

The Enea Group intends to spend over PLN 68 billion on investments in 2023-2042, of which approximately PLN 14 billion on RES-related projects. Among them are offshore wind farms, onshore photovoltaic and wind farms and energy storage facilities. During the first stage of their deployment, these facilities will be dedicated to DSO operations and will complement existing and newly created RES generation units. In the future, the Group will reach out to retail and industrial customers with this proposal.

In the initial phase of its efforts aimed at reaching climate neutrality, the Group intends to use gas as a low-emission transition fuel in order to maintain energy security. Investments in this area will be confined to the replacement of some 1.9 GW of capacity based on existing infrastructure. Conventional low-emission sources will stabilize the developing RES capacity.

In the distribution area, the updated Enea Group Strategy recognizes the need for DSOs to prepare for the changing capacity market. For this reason, more than PLN 42 billion will be allocated to investments in this area in 2023-2042. Another challenge in the coming years will be the development of a smart power grid. It will serve as an investment in improving energy security and enabling the provision of new services by both electricity distributors and suppliers.

Among the key directions in the Group’s development will be the marketing of multi-energy products, a modern offering for prosumers, including cooperation with local governments, and participation in the creation and management of energy clusters. The Group intends to develop the area of wholesale trade and new lines of business while increasing the efficiency of customer service.

Sustainable development

As a responsible entity operating in the power sector, the Enea Group will run its business in a manner that minimizes its impact on the natural environment. The updated Enea Group Development Strategy supports the pursuit of the Sustainable Development Goals.

The Enea Group has taken a serious approach to issues associated with its responsibility for the market and its stakeholders. Being aware that its credibility, built over many years, is its key asset in these relationships, in accordance with the UN Sustainable Development Goals (SDG) agenda, the Group will continue to aspire to trust leadership.

Enea will be a responsible partner in sustainable management of the reliability and continuity of energy supplies and sustainable environmental management, committed to curbing the harmful environmental footprint and seeking innovation and technological development. Furthermore, the Enea Group will be a responsible partner in social involvement and development of local communities pursuing the objective of managing its relationships with external and internal customers in a sustainable manner.

Enea assumes that it will achieve the following by implementing the Strategy:

13 key development directions of the Enea Group:

1. Development of energy storage projects and provision of services to third parties;
2. Involvement in offshore wind energy generation;
3. Intensification of activities aimed at gaining access to green energy through the execution of projects included in the Enea Group’s RES portfolio;
4. Development of hybrid installations;
5. Conventional energy generation based on low-emission sources (gas – as a transition fuel; biomass; RDF);
6. Development of a smart power grid;
7. Changed operation of the DSO in the new power market model;
8. Development of the Enea Group’s wholesale trade area (prop-trading, origination);
9. Construction of multi-energy products, including supply chain management;
10. Expansion of sales and enhancing customer loyalty;
11. Development of New Lines of Business;
12. Development of a modern offering for prosumers, including cooperation with local governments and urban development NGOs, and participation in the creation and management of energy islands (energy clusters);
13. Increasing the efficiency of customer service across the Enea Group.

Selected Strategic Objectives of the Enea Group

Overriding objective: Enea’s Green Change – sustainable transformation increasing the shareholder value of the ENEA Group.

• Development of Renewable Energy Sources based on state-of-the-art technologies
• Ensuring financial security of the Enea Group
• Development of new lines of business to be able to offer Customers new products, not only power-related ones
• Producing an optimum and sustainable mix of products and services for well-identified Customers in cooperation with business and social partners
• Efficient operating model of the ENEA Group aligned with the Group’s evolution

Current Report No. 39/2021: Updated Enea Group Development Strategy until 2030 with an outlook to 2040