EGP to spend €6bn to reach 12.4GW

Italian renewables giant Enel Green Power (EGP) plans to invest €6.1bn ($8bn) between 2013-2017 with growth focused on emerging markets, the company says in its new investment plan.

EGP says capacity will increase by 4.4GW during the period to reach 12.4GW, making it one of the biggest renewables developers in the market.

The Italian company has added 3GW of capacity, most of it wind power, since its IPO in late 2010.

EGP says it is maintaining its investment plans despite a "persistently adverse economic scenario". It says the plan will be "essentially self-financed with a focus on emerging markets and further geographical and technological diversification."

The business plan foresees cash-flow generation of €8.4bn, which will fund capital expenditure of €6.1bn, as well as borrowing costs of €1.5bn and dividends of €1.1bn.

EGP expects to see EBITDA of around €1.8bn  in 2013, €2.4bn in 2015, and between €2.5bn and €2.7bn in 2017.

As part of the business plan, EGP expects to increase its capacity in emerging markets to 3.6GW from 0.9GW in 2012. Emerging markets will account for 69% of the growth capital expenditure foreseen in the plan.

EGP aims to strengthen its position in Latin American markets where it already operates, including Brazil, Chile, Mexico and Central American countries. It also plans to enter five new countries: Turkey, South Africa, Morocco, Peru and Colombia.

Meanwhile, in North America, capacity will reach 2GW, from 1.2GW in 2012.

In Italy and Iberia growth will slow, with the 2017 target at 5.6GW compared to 4.9GW in 2012. In the rest of Europe, capacity will also stay relatively stable, reaching 1.1GW compared to 1GW in 2012.