With a more conservative approach to investments, Italy’s Enel (ENEI.MI) aims to spend 35.8 billion euros ($39 billion) in gross capital over the next three years, according to the power group’s new chief executive, who announced on Wednesday.

The business stated in its new strategic plan that investments in renewables will be more selective, with 12.1 billion euros going toward onshore wind, solar, and battery storage, compared to nearly 19 billion euros going toward grids.

Enel stated it intends to establish alliances with other organizations to create about 13 gigawatts (GW) of additional green energy capacity globally. In early trading on the Milan Stock Exchange, shares of the state-owned electricity firm saw a 1% decline, lagging a marginally positive blue-chip index.

Up from 48% in the previous plan, which called for investments totaling 37 billion euros, including 17 billion for renewables, the group would allocate 49% of its gross capital expenditures to projects in Italy. The new 2024–2026 business plan, according to Flavio Cattaneo, the CEO who took over for the long-serving Francesco Starace in May, would make Enel a more nimble and agile organization.

“Over the following three years, we’ll implement a more discerning approach to investments in order to maximize profits while minimizing risks,” Cattaneo stated in a statement, stressing that his plan will be based primarily on financial discipline.

According to Enel, its net ordinary income could increase by 6% annually on average to reach 7.1–7.3 billion euros by 2026.

Over the following three years, the group confirmed a dividend floor of 0.43 euros per share. If cash flow neutrality is reached, the group has promised to increase the dividend per share by p to a 70% payout on net ordinary income.

According to the new CEO’s interpretation of a disposal strategy that the previous management had stated, the organization anticipated reducing debt by about 11.5 billion euros between 2023 and 2024. This would allow for more extended asset sales closing times than anticipated. In 2026, net financial debt is anticipated to decrease to around 2.3 times the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).

By year’s end, net debt is estimated to be between 60 and 61 billion euros, more than the prior business plan’s estimate of 2.7–2.8 times EBITDA.