Decarbonisation and efficiency
During 2020, the company continued on its clear pathway to decarbonise the generation mix. The June closures of the Compostilla and Andorra plants, which operated with domestic coal, resulted in a 43% reduction of installed capacity (2,100 MW) that operates with this technology. The outlook is to move forward during 2021 with the closures of the other 2,500 MW distributed across As Pontes and Carboneras, which will leave only 200 MW in operation with this technology located in the Balearic Islands.
Only 1% of Endesa’s revenue came from its coal generation business and the share of electricity from this fossil fuel in the total electricity produced by Endesa was only 2.5% in 2020.
The volume of installed capacity in renewable sources (hydro, solar and wind) grew by 400 MW, to end the year at 7,800 MW. Thanks to this increase in clean power, alongside the decline in installed coal-fired capacity, Endesa’s electricity production in the Iberian Peninsula was 85% free of CO2 emissions. Electricity production from renewable sources increased by 33% to 13.4 terawatt-hours.
For the development of its 2021-2023 investment plan, Endesa has a project pipeline of 6,700 MW of renewable power with access point and grid connection at the end of the year. This capacity will comfortably cover the increase in renewable energy plants of up to 3,900 MW included in the strategic plan for the next three years. In addition, the company was awarded 50 MW of photovoltaic power in the auction launched by the government last January. In total, Endesa’s renewable projects pipeline, at various stages of government permit maturity, amounts to 42,000 MW.
Moreover, Endesa took several decisions throughout 2020 to be better able to face the future challenges of the energy market in this decade of Energy Transition. First, it recognised a provision of 213 million euros in the third quarter to restructure the workforce associated with the coal-fired generation business, which the company is exiting. Secondly, in the fourth quarter it recognised a provision of another 387 million euros to cover the cost of generating efficiencies linked to the digitalisation of the Distribution business, mainly, and also of Marketing. In addition, during the first quarter, Endesa booked a provision of 159 million euros to restructure its workforce in general.