ENGIE’s Strategy to Lead the Energy Transition
ENGIE is restructuring and positioning itself as a leading force in the energy transition by optimizing its industrial model and focusing on three core business segments: Renewables & Flex Power, Infrastructures, and Supply & Energy Management. This strategic shift aims to capitalize on emerging market opportunities while reinforcing the company’s role in delivering clean and reliable energy solutions.
A Strong Industrial Model for the Future
To drive a sustainable and resilient energy transition, ENGIE is committed to delivering greener and smarter electrons. The company’s refined business structure is designed to:
- Provide customers with decarbonized electricity 24/7.
- Expand its footprint in power networks to enhance infrastructure resilience.
- Ensure greater efficiency and flexibility in energy management.
ENGIE’s investment strategy is equally ambitious. Between 2025 and 2027, the company plans to allocate €21 to €24 billion in growth capital expenditures (capex), with 75% directed toward renewables, battery storage, and power networks. This substantial investment underscores ENGIE’s commitment to building a cleaner and more efficient energy ecosystem.
Accelerated Performance Plan and Financial Projections
ENGIE is implementing an accelerated performance plan aimed at exceeding €1 billion in EBIT contributions between 2025 and 2027. The company forecasts a compound annual growth rate (CAGR) of 10% in EBIT (excluding nuclear operations) over the 2021-2027 period.
To reinforce financial stability and support progressive growth, ENGIE has revised its earnings outlook:
- NRIgs 2025: Between €4.4 billion and €5.0 billion.
- NRIgs 2026: Between €4.2 billion and €4.8 billion.
- NRIgs 2027: Between €4.4 billion and €5.0 billion.
Additionally, the company has updated its dividend policy to maintain a payout ratio between 65% and 75% of NRIgs. The annual floor dividend has been raised to €1.10 per share, reinforcing ENGIE’s commitment to delivering consistent value to its shareholders.
Operational Objectives for 2030
ENGIE has set ambitious operational goals for 2030, aiming to significantly expand its clean energy capacity and enhance infrastructure networks. These objectives include:
- 95 GW of installed renewable and storage capacities.
- 10,000 km of power transmission lines in operation.
- 50 TWh/year of biomethane production capacity connected to ENGIE’s network.
- 300 TWh of power sales in B2C and B2B markets.
The company’s long-term vision is underpinned by sustainable and progressive earnings growth driven by strategic investments and enhanced performance measures.
Commitment to Decarbonization
ENGIE is accelerating its decarbonization trajectory in alignment with global climate goals. The company has committed to a 55% reduction in total greenhouse gas (GHG) emissions by 2030 compared to 2017 levels. This ambitious target is a crucial milestone in ENGIE’s overarching mission to achieve net-zero emissions by 2045.
CEO’s Vision for ENGIE’s Future
Catherine MacGregor, CEO of ENGIE, emphasized the company’s transformation over the past four years, highlighting the strategic efforts to simplify and de-risk its operations while maintaining its course toward net-zero emissions.
She stated, “Over the past four years, ENGIE has refocused, simplified, and de-risked, while continuing its trajectory towards net zero by 2045. This work is reflected in a solid industrial track record and excellent financial performance over the period. As the energy transition is the proven best way to address global sovereignty, affordability, and climate challenges, the demand for electricity and decarbonized molecules continues to grow.”
She further noted that massive electrification presents a significant opportunity for ENGIE, reinforcing the company’s goal of becoming the leading utility in the energy transition.
“With a target of 95 GW of installed renewable and storage capacity by 2030, we will deploy an ambitious investment plan of €21 to €24 billion over the next three years. We already have the best people in the sector: with strong economic fundamentals, a clear strategy, an integrated model reinforced by our new organization, and recognized execution capability, ENGIE has all the assets to play a central role in building the Energy Transition system of tomorrow.”
