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S&P Global Market Intelligence ($):

After a long search for focus and direction, and five months since its new leader took charge, French multi-utility Engie SA presented a new corporate strategy. The result is a four-pronged group — slimmed down from 25 business units — focused on renewables, energy solutions, networks, and thermal and supply.

“I’ve now been at Engie for five months, but it feels like much [longer] because we have done so much,” CEO Catherine MacGregor said May 18 on the company’s first-quarter earnings call, where the new strategy was unveiled.

In renewables, Engie boosted its capacity targets to 50 GW by 2025 and 80 GW by 2030, from 31 GW installed today. Capital expenditure in the business unit will also grow to more than €2 billion per year until 2023 and more than €3 billion annually from 2024. “Those objectives are a step change,” COO Paulo Almirante said.

The renewables division, headed up by Almirante, will be focused on onshore wind and solar growth in existing core markets, such as France, the U.S., Brazil and Chile. Offshore wind, in which Engie develops projects via a joint venture with EDP Renováveis SA, will retain a wider geographical scope.

Renewables installations will average 4 GW per year between 2022 and 2025, climbing to 6 GW each year until 2030. “We wanted to present real and achievable targets,” Almirante said, rather than announcing higher goals than Engie’s peers.

[Camilla Naschert]

More: As Engie rejigs corporate structure, renewables emerge as key growth priority

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