Endesa will invest €10.6 billion until 2028, and half of that will go to distribution networks.

BarcelonaEndesa will invest a total of €10.6 billion between 2026 and 2028, the company announced on Tuesday, presenting its strategic plan for the next two years. Of that investment, 5.5 billion euros will go to the distribution network (52% of the total), according to the company. This investment plan is the company's largest in the last twelve years (since it began operating solely in the Iberian Peninsula), exceeding the previous strategic plan for 2024-2026, which amounted to €9.6 billion, by 10%. The company has also submitted its 2025 results to the Spanish National Securities Market Commission (CNMV). These results have surpassed the upper end of forecasts for both gross profit (EBITDA) – €5.756 billion, up 9% – and net ordinary profit – which grew by 18% to €2. The company will propose increasing the dividend to be distributed to its shareholders by 20% more than previously planned (€1.30), to €1.58 per share. This figure is also 20% higher than the dividend distributed in the previous year and represents a dividend yield of over 5% for the year.

The company has reported that more than half of the resources in the new investment plan, €5.5 billion (40% more than in the previous plan), will be allocated to strengthening the electricity grid. However, it clarifies that this will be the case provided that the royal decree is approved to allow investment above the current regulatory limit and that 100% of the investments made be recognized. This substantial outlay will open the door to more new customer connections in a context of widespread saturation of this infrastructure throughout Spain and in Endesa's distribution areas: 88% and 94%, respectively.

Endesa will appeal in court the circulars approved at the end of last year by the National Commission for Markets and Competition (CNMC) regarding the methodology and the financial remuneration rate (TRF) for electricity distribution for the 2026-2031 regulatory period, as announced by the regional minister.

In a press conference to present the 2025 results, Bogas stated that the Council of State has made "very clear" recommendations regarding the CNMC's proposal, in which, in his opinion, the electricity companies should have been given a hearing. Therefore, Endesa will appeal the situation and "will take legal action." In this regard, the executive stated that the 6.58% financial return rate finally established by the regulator (CNMC) for electricity distribution activity—compared to 5.58% for the previous period, far below the electricity sector's demands of over 7%—"is among the lowest" in Europe.

The renewable energy investments planned in the plan will add another €3 billion, 28% of the total, and will be guided by selective criteria, focusing on wind power and storage infrastructure, which together will account for 1,500 MW of the 1,900 MW expected to be added to the generation base. A platform of 3,000 MW of hybrid renewable projects has been established on the Iberian Peninsula, with available land and grid connection, ready for long-term power purchase agreements (PPAs), as would be the case for data centers. The electricity and gas trading business will absorb another €900 million of the plan. Strengthening in-person customer service, alliances such as the one with MasOrange to offer cross-selling, and achieving efficiencies to maintain competitiveness in a very challenging market will be the key pillars of this activity, the company stated.

10 more years of nuclear power and shutdown

The energy company has reiterated in the market the need toadapt the nuclear power plant closure plan agreed in 2019 to the actual evolution of the Spanish energy plan (PNIEC), to reinforce security of supply in the face of the significant delay in meeting the wind power and storage targets for 2030. The company believes that if the conditions established in the PNIEC are not met, its operation should be increased to continue providing stability to the system and reducing system costs and emissions. In fact, Bogas believes that the closure of nuclear power plants should be postponed for 10 years, although so far only the extension for the Almaraz plant in Extremadura has been requested until 2030. "We believe that nuclear power should be extended by 10 years. As a Spanish energy company, we are advocating a certain pragmatism, both because of the technical and economic difficulties that may arise," Bogas said. Bogas stated that they are confident that the request for an extension for the Almaraz nuclear plant in Extremadura will be approved, as this and other issues were raised at the conference.

The company has indicated that the 2025 results were achieved with a 2% increase in adjusted electricity demand across the Iberian Peninsula, and with prices of pool The Iberian wholesale market, highly competitive on a European scale, stands at €65/MWh, but this figure increased by an additional €16/MWh due to the extra cost of ancillary services, €5/MWh higher than the previous year. This extra cost is a consequence of the costs of the so-called enhanced operation deployed by the system operator. after the massive blackout on April 28, which left the Iberian Peninsula in darkness.