Strategy in Flux
The Italian government, now spearheaded by Giorgia Meloni, is reshaping leadership across major state-controlled groups with fresh leadership names. After Francesco Starace’s departure as Enel’s chief executive, one of Europe’s largest energy players and owner of Endesa, questions loom about the path ahead for the group. The change raises uncertainty about future plans and strategic direction within Enel and its Spanish subsidiary, Endesa.
Flavio Cattaneo is selected as Enel’s new CEO, with Paolo Scaroni and other veteran figures taking key roles. Scaroni, who previously led Enel two decades ago, currently serves as president of Italo-Nuovo Trasporti Viaggiatori and holds roles as a curricular and non-executive director across major public holdings in Italy. He is also a former head of Rothschild Italia and serves as president of AC Milan. The governance reconfigurations signal a broader shift in how Italy’s leaders align with the parent group’s global ambitions.
Strategy in the air
With Enel’s top layer undergoing a shake-up, the direction of Endesa’s strategy remains in the balance, given that it’s controlled by the Italian conglomerate with a substantial stake. Starace currently sits as vice president of Endesa and has steered the Italian parent company’s board and strategic agenda across all subsidiaries. Observers note that the change could recalibrate how the group pursues its long-term goals.
Just months earlier, Endesa unveiled an updated strategic plan through 2025, outlining a goal of achieving profits approaching 7.7 billion euros within four years. The plan also reiterates a dividend policy around 5.4 billion euros for that period and signals further investment. The focus centers on accelerating growth in renewable energy and electrification across its footprint.
In its commitment to green energy, the plan targets roughly 4,400 MW of new green capacity—about half of which will be allocated to renewable sources. Investments in solar capacity would rise by about 39 percent, coupled with 1,400 MW of new wind capacity, aiming to add 3,000 MW to a grid that could reach near 13,900 MW by the plan’s end.
José Bogas, Endesa’s chief executive, received board confirmation for a new term through 2026, as the company continues a multi-year leadership stretch. The Italian government has so far avoided drastic moves, and industry observers hope the risk posture remains cautious while strategic bets stay on the safe side. Bogas noted that any decision by shareholders to extend leadership would be welcomed; if not, he implied it would not spell disaster for the company. The sentiment underscores the high stakes involved in aligning leadership with the parent group’s evolving strategy.
Asset sales in Spain
As part of its revised strategic plan, Enel has introduced a macro-level plan to reduce debt by around 21 billion euros, with roughly 10 billion from ongoing operations and another 11 billion from asset disposals that aren’t tied to business debt. Among the divestitures is the planned sale of Endesa’s gas customer portfolio in Spain within the year, a move designed to streamline the portfolio and strengthen balance sheets.
Enel plans to use its strategic framework and liquidation roadmap to reorganize its markets, concentrating activities in six key countries: Italy, Spain, the United States, Brazil, Chile, and Colombia. This focus would come at the expense of operations in other markets, such as Romania, Peru, and Argentina, which are slated for withdrawal within the year.
Even in markets slated for growth, the strategy prioritizes a gradual wind-down rather than maintaining all existing operations. The divestment plan includes exiting the entire gas marketing client portfolio in Spain. The new roadmap also reframes the value of the gas portfolio in Spain as crystallized, signaling a cash-out approach tied to customer assets rather than continued generation from gas-fired plants. Endesa and the parent company previously indicated intentions to exit electricity generation from gas plants before 2040, reinforcing the shift toward cash-generating assets tied to customers and renewable resources.
Sources and industry observers note that the overall trajectory centers on fortifying balance sheets through selective asset disposals while preserving core growth engines in renewables and electrification, especially in the markets identified as strategic priorities. The evolving leadership structure and strategic pivots reflect broader political and economic dynamics shaping the European energy sector today. Citation: Reuters and industry briefings provide context on the leadership reshuffles and strategic outlines referenced above.