13 May 2024

REN focused on enabling the Energy Transition, increasing investment and reinforcing its sustainability commitments

Today, REN - Redes Energéticas Nacionais presented its Strategic Plan for the period 2024– 27, which underlines its commitment to enable the Energy Transition without compromising the financial solidity and operational excellence that have characterized the company, and to deliver sustainable profitable growth. REN is also reinforcing its sustainability commitments, stepping-up its ESG targets to reduce its Scope 1 and 2 emissions by 60% by 2030 (compared to 2019, +10p.p. vs previously announced), reduce its Scope 3 emissions by 30% by 2030 (compared to 2021) and to have 100% green debt by 2030.

The pillars of the 2024–2027 Strategic Plan will be materialized in a business plan that forecasts an annual EBITDA of between €500M and €540M, annual net profit of between €105M and €120M, and a reduction in net debt to a level between €2.6B and €2.5B. REN is also updating its dividend policy to increase its dividend per share by 2% per annum until 2027.

In terms of investment, REN continues to focus on the Energy Transition, with a forecast increase up to 70% the average annual CAPEX (domestic and international) compared to the 2021–2023 period, totaling €1.5-1.7B during 2024-27. This investment will be made to enable the connection of renewable energy projects to the grid, enhance the quality and resilience of the current network, strengthen the green gases infrastructure, assure the maintenance of the high levels of service fundamental for REN, and consolidate Chile’s footprint. This level of investment has a strong impact on the Portuguese economy, namely through the creation of jobs, both in REN and in the dozens of contractors and local suppliers that help us enhancing and maintaining our infrastructures, and the positive effect on the national income of the corresponding projects.

The 2024–2027 Strategic Plan also foresees the financing of the company through green emissions, with REN strengthening its characteristics of solidity and low risk and not changing its conservative financial policy aimed at consolidating its Investment Grade credit profile.

Sustainability is a very important vector of the Strategic Plan, and will be reflected, in addition to environmental commitments, REN complemented its social commitments with €3M investment in communities by 2027, €2M in employee capabilities by 2027 and have 100% employees ESG trained by 2030.