MILANO (Reuters) – Italy’s largest regional utility company, A2A, will spend 16 billion euros ($ 19.45 billion) between now and 2030 to reduce its carbon footprint and grow its waste and water business.
Under its new 10-year plan, the Milan-based utility said it aims to cut its carbon emissions by 47% from 2017 levels and to double its renewable capacity to 5.7 gigawatts through more than 4 billion euros of investment and acquisitions.
The group, which has about 970 megawatts of coal capacity, said it aims to phase out coal-fired power plants by 2022, ahead of the national target set for 2025.
It will spend 6 billion euros on waste management and water businesses and aims to become a significant European player.
“This is a solid foundation that will allow us to create a strategic infrastructure, innovative and essential for the country’s growth and relaunch, to be ambitious and looking to Europe,” said A2A CEO Renato Mazzoncini.
At 1005 GMT A2A the share was up more than 4%.
Utilities across Europe are investing in renewable energy and grids as governments seek to power economies to meet climate targets.
A2A, which is controlled by the cities of Milan and Brescia, said it would double its core revenue to 2.5 billion euros by the end of the plan from 1.18 billion euros expected for 2020. Net income will grow by more than 8% annually.
The growing margins will allow it to increase its dividend for 2020 to at least 8 euro cents and at least 8.2 euro cents for 2021, he said.
The utility company, which plans to create 6,000 new jobs during the plan period, said that after 2022, dividends will grow at least 3% per year.
“… the targets for the next 3 years are quite in line with consensus, while the company expects a very aggressive growth assumption beyond … There is a tremendous increase in the projected total capital spending,” Mediobanca Securities said.
Reporting by Giancarlo Navach, written by Stephen Jewkes, editing by Giulia Segreti and Barbara Lewis