Spanish energy firm Naturgy has shared its Strategic Plan for the next four years, under which it plans to invest €14bn ($16.6bn) by 2025.
The company intends to use two-thirds of this investment for boosting renewable energy generation.
The investment in the renewable energy segment will increase Naturgy’s installed capacity from 5GW to more than 14GW. The added capacity is expected to come online by 2025.
To this end, the company aims to add 5.2GW of renewable capacity in Europe, followed by 2.2GW in Australia. The remaining capacity will be installed in the US, Chile and other locations.
Naturgy executive chairman Francisco Reynés Massanet said: “We want to join in the [energy] transition and we believe that this plan is ambitious, but also realistic and executable.
“We must seize the opportunity to contribute to the transformation of the sector with drive and solvency.
“Spain is strategically well placed to tackle the transition with reasonable assurance, for which a stable regulatory framework is vital.”
Naturgy’s total renewable investment in Spain and worldwide will come to around €1.73bn ($2.05bn) a year. It is expected to increase the earnings before interest, tax, depreciation and amortisation (EBITDA) of this business to €1bn ($1.2bn) by 2025.
The company will invest €4bn ($4.7bn) in grids across Spain and Latin America, estimating an EBITDA of €2.7bn ($3.2bn) for this business by the end of 2025.
The investment is also intended to help enhance the transition of the gas network to support decarbonisation and commercial repositioning.
Through this, Naturgy estimates it will be able to add more than 1TWh of renewable gas into Spain’s gas transmission system by 2025.
Mr Reynes Massanet said: “We are ready for a new stage of transformation. Naturgy has demonstrated its ability to achieve results and create value in its businesses on a daily basis.
“Our position is to accelerate our transformation and anticipate the many challenges ahead of us as a society, industry and country,”