One Vision 2020-24, Alperia updates the strategic sustainability objectives

1 billion in investments from 2022 to 2024 with great attention to territorial, environmental, economic and social effects

The supervisory and management boards of Alperia have approved theOne Vision 2020-24 plan update, the strategic plan of Alperia which summarizes the sustainability goals with significant growth of all business units (BUs). In summary, the One Vision 2020-24 update confirms the objectives relating to: 1 billion euro of total investments from 2022 to 2024 with great attention to environmental, economic and social territorial effects; Ebitda up to over 260 million euros in 2024; investment of over 400 million in energy renovation of buildings; 80% of investments aimed at at least 10 United Nations sustainability objectives (UN SDGs).

And again: investment and growth also for the traditional sectors of the group (hydroelectric generation, distribution and district heating which overall will absorb approximately 540 million euros of investments from 2022 to 2024); investments to be made thanks to the contribution of the NRP, in particular for smart grids, district heating, green communities and hydrogen; financial discipline with a net debt guidance not exceeding 2.5x Ebitda at the end of 2024.

Furthermore, the Alperia group, already carbon neutral since 2020, will further improve its Scope 3 emissions to accelerate the path towards Net Zero. And then, talent management and generational turnover to accompany growth and enhance internal resources, a further push towards the digitization of the whole group and confirmed the growth trend of dividends.

Growth priorities and initiatives for individual Business units

The three-year period 2022-24 will be greatly affected by the volatility of energy prices and the impacts for incentives for energy efficiency. These impacts will be significant for the economic margins, with Ebitda growing strongly for the Generation, but also at the equity level there is a change in the capital structure with the need for greater sources of financing for working capital. The projections of the Bu Smart Region are affected by the end of the 110% eco-bonus incentives by 2023 which will be reflected in the 2024 Ebitda. For the individual Bu, these priorities and growth initiatives are envisaged in greater detail.

BU Generation‘is the first business unit of the group in terms of margins and invested capital and represents the strength of the current portfolio of activities. Alperia is the second largest Italian hydroelectric producer (after Enel) with 38 plants for over 1400 MW of power. The One Vision 2020-24 update confirms the following strategic activities and priorities: task force for the renewal of the 8 expiring concessions; investment for the reconstruction of the penstocks of Lasa and S. Pancrazio; complete refurbishment of the Cardano, Bressanone, Lasa and Lana power plants; confirmation of the Capacity Market also for 2024; growth for new hydroelectric plants following the new tenders for the concession of large derivation in 2024; total investments of 270 million euros from 2022 to 2024

BU Networks‘: Alperia’s electricity distribution network is over 8,700 km (high, medium and low voltage) for over 2.5 TWh distributed. Edyna, the Group’s distribution company, is the fifth national distributor, and one of the 4 operators who will be the first to introduce the new generation meter in Italy. In particular, the One Vision update for the BU confirms: installation of over 260 thousand new generation meters, of which 20 thousand meters for other local distributors; continuous push for investments to ensure the resilience of the grid as well as to increase the quality and continuity of the electricity service; strengthening and integration of the Bolzano and Merano network; construction of new major primary plants and new medium voltage network backbones; growth in gas networks; growth in services to other network operators in the area; investments of over 230 million euros from 2022 to 2024.

New business models to interface the customer with digital channels and district heating

BU Sales and Trading‘: Alperia is enabling new business models to interface customers with digital channels and revisiting the role of physical channels. In particular, the One Vision update confirms: significant growth in the customer base both through organic growth and through acquisitions; development of an omnichannel network by continuing territorial strengthening; new Full Digital initiative with challenging new customer acquisition objectives; development of the Asset Management portfolio for non-owned plants; development of additional trading and Demand Response services; investments of over 70 million euros.

BU Heat and Services‘: Alperia manages 6 district heating systems in the South Tyrolean area including the plants in the city of Bolzano and Merano. The development of a network of over 125 km guarantees the supply of a quarter of the thermal energy produced in South Tyrol. Alperia Ecoplus is the fifth national operator with approximately 217 GWht produced and distributed. The One Vision update confirms the strategic priorities for the BU: extension of the Bolzano district heating network; improvement of the energy mix of Merano; construction of 3 new cogeneration plants in Bolzano; consolidation of other district heating plant operators; construction of a cooling system in Bolzano; investments of around 40 million euros from 2022 to 2024.

High-tech initiatives for cities and citizens

BU Smart Region‘: Smart Region is the promoter of a series of high-tech initiatives for cities and citizens, strengthening the positioning on condominiums, Public Administration, Healthcare and smart services for citizens and cities. A reorganization and rationalization of the BU is underway in order to be able to increasingly provide innovative solutions for the energy transition. The role of Neogy, the third national operator in electric mobility for public recharging points, is also relevant and important.

In particular, the BU will continue to focus on these initiatives: improving the efficiency of buildings (also through thermal coats); development of domestic photovoltaics; innovative energy efficiency solutions based on algorithms and data analysis and artificial intelligence; development of Smart Health, Smart Land and Smart City solutions; develop energy efficiency and facility management solutions also for the public administration and healthcare, also through strategic partnerships; continue the development of sustainable mobility (electricity and hydrogen) both for the infrastructure of the territory and for the creation of innovative commercial solutions; total investments of over 380 million euros (of which around 250 for the super bonus).

Digitization, Innovation and R&D and Sustainability

One Vision confirms the important R&D resources and capabilities to face the new wave of innovations that the energy transition requiresAnd. The initiative of Alperia Startup Factory, now in its fourth edition, which connects the Group with hundreds of startups around the world. Alperia will also launch a Venture Capital activity to further support the growth of startups. Additional innovation initiatives launched in 2021, Power Mission 2.0, Disrupt me Israel, participation in other accelerators will be confirmed and further expanded in the next three years.

All the Business Units of the Group continue to generate tangible results for the area. The main impacts, measurable at the end of the plan, will be: over 280kton of CO2 avoided, over 85% of the customer base served with green products (both electricity and gas) and savings of over 22 million cubic meters of water (equivalent to consumption per year of 100 thousand families). The next three years will also see: the inclusion of a Diversity Policy and a Diversity Manager, the inclusion of ESG issues in the compulsory training programs for board members and employees, the introduction of long-term performance targets for managers, Net Zero Roadmap for the group.

Brands: “Focus on sustainability, corporate responsibility, innovation and training”

For the chairman of the supervisory board Mauro Marchi, the update of Alperia’s 2020-2024 Business Plan “wanted to highlight the issues of sustainability and corporate responsibility. We wanted to implement concrete and integrated actions in industrial development aimed at planning and implementing useful practices to guarantee production potential in the long term of the territories in which we operate. Responsible use of water resources, concrete and measurable reduction of emissions that contribute to the greenhouse effect and affect air and water quality are among the founding themes of our daily work “.

“The update of the Plan called OneVision 2020-24 – he adds – also has a place a particular focus on the subject of innovation and training of human resources aiming at the strengthening of skills, the development of community relations and inclusion. We feel a strong responsibility to operate in favor of an economic and social growth of the community in which we operate, through the investments planned in the area and the support for the activities that the social fabric expresses. We are aware that we are an important and innovative reality for the Alto Adige system and we will guide our behavior to ensure sustainable growth “.