Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the ERG 2022 results and strategy update conference call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star zero on their telephone. At this time, I would like to send the conference over to Ms. Emanuela Delucchi, Chief ESG, IR, and Communication of ERG. Please go ahead, madam.
Good morning, everybody, and welcome to ERG full year 2022 results and 2022 to 2026 business plan update presentation. Here with me, as usual, there are our CEO Paolo Merli and our CFO Michele Pedemonte. Let's see the agenda of today's meeting. We start with a brief introduction on the full year key figures and the important steps we did this year, continuing our successful journey in renewable growth and decarbonization. Afterwards, Michele will drive you through our full year and fourth quarter 2022 results. Paolo will show you our updated targets for the plan following the energy crisis, which took place in 2022, exacerbated by extreme volatility and regulatory uncertainties. Michele will focus on our capital structure and financial policy in the planned period.
As usual, I will focus on the updated ESG strategy, which continues to be at the core of ERG, and I will show the main ESG achievements in 2022. Paolo will then conclude with 2022-2023 guidance and closing remarks focusing on key pillars of our business plan. As usual, there will be a Q&A session at the end of the event. Let's start, and now over to Paolo.
Thank you, Emanuela. Welcome everyone to our Investor Day. Before we get started on the full year 2022 results and the updated targets for the future, let's spend a moment to see what we have done so far over the last couple of years, since when we first announced the strategy to focus on Wind and Solar, also through an asset rotation program to dispose Hydro and Thermal operations. Since then, we made significant investments, about EUR 1.6 billion, open in 2021, and almost EUR 1 billion in 2022, through which we added almost 1 GW of new capacity, the one year represented in the chart, both wind and solar, through either M&A and organic, spread out in seven different geographies.
From another perspective, you can see it as the delivery of the full substitution of 1 GW of conventional power, hydro and thermal, in less than two years. I think a proof of our strong capability. That was well beyond our initial expectations, to be honest. That's why we are all very proud of what we have been able to achieve. That's also the platform we want to keep growing from in the future. 2022 results. I am on page number six. Numbers here are based on continuing operations, thus excluding hydro and CCGT from the scope. Numbers are also presented here, gross of windfall taxes and clawback measures, consistently with our accounting in the nine months of the year and our last guidance. Those items are accounted as non-recurring.
In a nutshell, I would say a solid set of results, mainly driven by the larger installed capacity. I comment here the full year, while Michele will walk you through the fourth quarter results in more detail. EBITDA, EUR 537 million, up 34% year-on-year. As I said, mainly boosted by the larger installed capacity. It's worth noting that during the year, we upgraded our EBITDA guidance four times in a row. This was mainly attributable to the larger than expected contribution from new assets. That all in all, brought in roughly EUR 120 million of fresh EBITDA, thus basically explaining the entirety of the growth compared to 2021 results.
Contribution from Italy, as you can see, was down mainly due to a negative price effect, as the reduction in the value of incentives based on the mark-to-market formula, you know, was only partly offset by higher merchant prices. Limited by the agent policies. The EBITDA growth from international operations was very significant, more than doubled compared to 2021. About 50% of 2022 EBITDA came from outside the border. Those numbers are not a coincidence. They are the consequence of the huge investments done, EUR 946 million in 2022, a further acceleration compared to the already high level in 2021. We continued to grow through a mix of organic and M&A, relying on the financial firepower of the group.
Adjusted net profit was EUR 216 million, almost double year-on-year, reflecting the stronger operating results and lower financial charges. Let me repeat it. This number does not include impact of windfall taxes and global measures, accounted as non-recurring items being temporary measures for a total of EUR 83 million net of taxes bottom line. Michele afterwards will explain those items, providing all the needed details. It's not represented here, the CCGT generated an EBITDA of EUR 56 million in 2022 compared to EUR 29 million in 2021. Partly thanks to its renewed eligibility of white certificates as of last year, despite a tough scenario, particularly over the fourth quarter. The net financial position at year-end was EUR 1.434 billion down versus the EUR 2.051 billion at 2021 year-end.
Mainly reflecting the cash in of the Hydro disposal, the strong cash flow generation registered by the company over the period, partly absorbed by investments and dividends paid. Net financial position at year-end still includes roughly EUR 150 million related to the negative mark-to-market of derivatives. This item will reverse in 2023. We are increasing our proposed dividend from EUR 4.9 to EUR 1 per share, sustainable in the plan period. Let me now give you a very quick update on our main achievements of the year. I'm on page number 7. We are moving forward with the expansion of our RES portfolio in Europe. As far as organic growth, we brought in operation 320 MW of wind in the U.K., Poland, France. We entered in Sweden.
In 2022, we continued to leverage on our solid track record in M&A. We added 323 MW, out of which 151 MW were solar PV in Spain and Italy, while 172 MW of wind in Italy. All in all, we reached a very sizable portfolio with more than 3 GW of installed capacity. We made steps forward also in securing our revenue through PPA and CFD from auctions. In line with our objectives to have 85%-90% of revenues backed by stabilization mechanisms. We signed PPA with Engie in Scotland and with Luxottica recently in Italy. Some repowering projects were awarded a CFD tariff. Finally, it's important to stress the solidity of our financial structure with an investment-grade rating, which remains a distinctive feature in the space of few renewable players.
In addition to that, in the fourth quarter of last year, we signed an ESG-linked revolving credit facility for EUR 600 million, which provides ERG with the right flexibility to manage a more volatile business environment and to keep looking for growth opportunities in a cost-efficient way. I move to page number eight. Very quickly here, as said, 2022 was another year of strong execution. I think these numbers are very self-explained. In 2022, we accelerated even further our energy transition deployment. We invested six times more than in 2020 to boost, as shown before, our RES portfolio. We remain committed to dispose the thermal plant in 2023, to become a pure RES player with 100% capital employed in renewables. To Michele for his review on results.
Thanks, Paolo. Now let's have a look at our Q4 2022 results. Let's start with an overview of unitary revenue trend. In Q4, electricity prices have been substantially aligned to the previous year. The all-in unitary revenues are affected especially by the hedging made in line with our hedge policy or by other revenues component. In wind energy, for example, unitary revenues are influenced by the value of the incentive, which declined from EUR 109 per MWh to EUR 43 per MWh . While on the market, we've got the price in line with previous year. All in all, we have a decline in unitary revenues from EUR 198 per MWh to EUR 120 per MWh .
In France, the large majority of our assets operate under a fit scheme without exposure to market prices. The increase of unitary revenues refers to plants out of incentive. In Germany, the one-way tariff structure, coupled with some short-term hedging, allow us to capture part of the fixed merchant prices. East Europe revenues decreased in Q4, mainly Romania and Poland. Romanian government introduced the obligation for our plant to sell electricity through a PPA at the cap price, roughly 90 EUR per MWh , in order to reduce the impact of high energy prices in the country. As regard the solar all-in unitary revenues, we see value increase in Italy, thanks to the new assets at merchant prices. In Spain, where our assets have a tariff mechanism that operates as a floor to our revenues, the all-in price is aligned with the overall merchant prices.
Finally, please note that consistently with previous quarterly results, our figures are presented gross of clawback measures, progressively implemented by various government during the year, and accounted as non-recurring items in 2022. Now a focus on production. As regard the Q4, we have in Italy, 567 GWh , -13% year-on-year, affected by the weaker average wind production, -13%, and also those extremely high recorded in Q4 2021, partially offset by the consolidation of new wind and solar assets. In France, 343 GWh , +17% year-on-year, thanks to better wind conditions in comparison to Q4 2021, and 17 GWh coming from new perimeter. In Germany, we have 153 GWh , +2%, thanks to slightly higher wind volumes.
In Eastern Europe, wind volumes lower than Q4 2021, which reflect the worse wind condition in Bulgaria and Romania. Poland recorded higher volumes, thank to the new capacity in operation. On top of that, we have the contribution to the portfolio of 239 GWh related to the assets built in Northern Ireland in 2021 or acquired in Spain in January 2022, and the first MWh from plants built in Scotland. Full year production reaches 5 GWh, mainly due to the new assets acquired or internally developed in Italy and abroad, and the higher wind productions in Eastern Europe and Germany.
In the fourth quarter of the year, we have an overall EBITDA equal to EUR 126 million, lower than Q4 2021 by EUR 19 million, despite EUR 28 million coming from perimeter effect, mainly due to negative price effect and lower volumes, especially in Italy and East Europe. In Italy, the EBITDA is EUR 55 million, minus 48%, mainly due to lower wind production in comparison to the extremely high volume recorded in Q4 2021, and lower value of incentives, partially offset by the 2022 acquisitions. In France, the EBITDA is EUR 26 million, benefiting from better wind conditions, higher prices for merchant assets, and the consolidation of the assets entered into operation end of 2021. In Germany, the EBITDA grew consistently in the quarter, due to a better scenario which accounted for EUR 14 million and the higher wind volumes, EUR 2 million.
In Eastern Europe, the EBITDA is EUR 16 million, lower than Q4 2021, mainly due to lower CS price and lower volumes, partially offset by perimeter effect in Poland. It is worth mentioning that in Q4 2022, U.K. with Scotland assets in c ommissioning and Spain, have contributed to our results for EUR 8 million. In full year results, EBITDA reached EUR 537 million, EUR 138 million higher than previous year, of which about EUR 117 million comes from perimeter effect in Italy and abroad. Notwithstanding a blessed acquisition in Italy, the group EBITDA shows a significant increase of geographical diversification. In 2022, EBITDA from Italy is just 50%. Now a brief overview of investments in the period.
The full year, we invested EUR 946 million, an amount which is higher than the one invested in 2021, EUR 607 million. CapEx are composed as follows: about EUR 638 million of M&A related to Wind and Solar acquisition in Italy, of which 170 MW Wind and 34 MW solar, whose closing took place in Q3 2022. Solar acquisition in Spain, 92 MW acquired in January, and acquisition in Q4 of a company which holds permits to build wind farm in Northern Ireland. About EUR 282 million related to organic CapEx in wind, refer to construction activities mainly in U.K., Poland, France, and Sweden. It also includes EUR 121 million of CapEx in Italy, powering projects and greenfield projects in Sicily.
It's worth mentioning that we made important step forward in our construction work. In the commissioning of 136 MW of Sandy Knowe in U.K., and 92 MW of Creag Riabhach at the beginning of January 2023. About EUR 50 million are related to the revamping of solar plants in Italy, and EUR 11 million related to maintenance CapEx spread across all our countries. Let's move on to financials, commenting on profits and loss on a recurring base. We have higher depreciation, which reflects the contribution of the new assets, so a perimeter effect. Net financial charges at EUR 7 million versus EUR 6 million in Q4 of 2021, mainly influenced by the investment made in the period. Tax rate in the quarter was 24%, against 30% in Q4 2021, mainly due to the higher impact from tax benefit on the lower EBT, driven by the lower EBITDA.
Taxation in the quarter does not include the effects of Contributo di solidarietà in Italy, as it is accounted as non-recurring item, EUR 19 million. As of January 2022, CCGT is consolidated in the discontinued item. In Q4 2022, it recorded an EBITDA of EUR 5 million and a net result of -EUR 2 million. As a result of all of this, the adjusted tax profit of the quarter amount to EUR 42 million versus EUR 72 million in Q4 2021. If we look at the full year 2022, the adjustment profit is equal to EUR 232 million, EUR 30 million higher than full year 2021. On page 17 in this chart, you can find a summary of the global measures and windfall profit tax, which we accounted as non-recurring items in the full year 2022.
Windfall tax Italy includes extraprofitti law EUR 37 million, already paid during 2022, and Contributo di solidarietà for EUR 19 million, that will be paid in 2023. Windfall tax Romania at EUR 15 million, the same figure as September. It's the same figure as September because the Romanian government in Q4 introduced the dedication of four-hour plant to sell electricity to a PPA at a set price, roughly EUR 90 per MWh. Global tax includes all the measure introduced by European governments during the year. The measure equal impact is in Italy, EUR 7 million, and France, roughly EUR 7 million. We believe these measures are unfair, unjustified, and ungrounded. For this reason, ERG has taken all required actions in order to protect its interests in all countries where it operates, including by challenging the relevant regulation before the competent court.
Let's take a look at the cash flow statement and the net financial position for 2022. The net financial debt closed at EUR 1.4 billion, EUR 600 million lower than the end of 2021. Following the cash in from Hydro disposal, we invested in the period EUR 946 million, in a year of solid cash generation, EBITDA EUR 537 million, notwithstanding the extraordinary windfall taxes. The net financial position includes EUR 153 million due to the mark-to-market derivatives on commodities. It is a short-term effect that will have a positive reversal in 2023. I think I have touched all the relevant items. Thank you for your attention. I will now hand over to Paolo.
Thanks, Michele. Now let me take you through our vision of the future and our targets. I'm on page number 19. I always like to start from here. What we are today. We have 3 GW of installed capacity on the left side, well balanced between Italy and abroad, based on two technologies, Wind and Solar. We have a pipeline of projects of 3.8 GW, on the right side of the chart, which keeps improving over time in size and quality. The pipeline, while spread across Europe, both in wind and solar, based on greenfield, repowering, co-development agreements. We are present in nine countries. That's what we are today, and this is the platform we want to expand from.
Our pipeline, page number 20, is growing over time. The 321 MW which were commissioned over the last 12 months was more than replaced by new additions. New additions were in Spain, all solar PV projects through co-development agreements, and Italy, where we have enlarged the number of projects eligible for repowering, including some multi-MW turbines. Our pipeline is technological, well-balanced between solar and wind, and well spread out in different geographies, consistently with our objectives. In particular, solar PV projects are mainly located in the south of Italy, Spain, and France. It's worth noting that our pipeline refers only to projects which may have a carbon by 2027. We are not including for the time being, very early stage projects with longer term deployment. That has always been our practice.
We see it as a solid and highly feasible pipeline of projects. To pursue our growth ambitions, we kept strengthening our business development teams in 2022, in Italy and in Europe. I'm commenting chart number 21. We can now rely on a larger organization dedicated to development and construction, which moved up consistently with our growing pipeline. We have in-sourced knowhow in all the phases of development, from real estate to construction, adapting our organization to a multi-countries business model. Despite this, the group workforce narrowed as a consequence of asset rotation. Let me say, a lighter, more international, and focused organization. We are not simply reshaping our portfolio of assets, but also our organization consistently. Let's comment a bit on the price environment, which is very highly volatile, let me say.
Since we presented our business plan one year ago, the energy markets have been upended by the war in Ukraine and all its consequences. The geopolitical tensions resulted into an unprecedented energy crisis with security of energy supply. The need to free up Europe from Russian gas dependence at the center of any European country's agenda. Notwithstanding this very high volatility, we still believe the market sooner or later will find an equilibrium. At a higher level compared to the prices we were used to see in the past. Based on our internal outlook, energy prices will in fact remain higher for longer, as well as volatility will remain stronger. On the right side of the chart, the way we reported our updated price outlook for business plan. The price outlook, sorry, our business plan is based off. Let me now comment this slide.
I don't want to enter into details. I think it's fair to underline that the regulatory landscape remains uncertain. I don't want to elaborate on each statements here, just to provide you with the right sensitivity about what's going on in the different state members. Michele already commented the impact so far on ERG. Here I would like to share with you the complexity we are facing and likely will continue to face all over 2023. All the countries introduced different set of clawbacks or windfall taxes, often with revenues not aligned with the one set out by the European regulation, by preferring to be EUR 180 per mMWh . This chaos of different rules are increasing the regulatory risk perception on all the sector.
I repeat it, we have different price caps in any country we operate. As for the price scenario, we remain quite confident that Europe will find, sooner or later, and we think soon, an equilibrium, easing all these measures in order to unleash the growth of RES in Europe, as needed to meet the targets to tackle climate change and to provide for energy security. There are not quick solutions, that's our view, to this long-term trend, and we still believe RES is part of the solution going forward. Let's move now on page 25. Here you have the installation across the different countries in Europe. Despite this, seems common view, I mean, the fact that renewable will have to grow, RES are not yet growing as fast as they should be.
In particular, new Wind installation in many countries are still lagging behind and well below expectations. Italy is an example. Solar PV grew faster across Europe than onshore wind, but mainly boosted by residential and commercial installations instead of large utility scale plants as it should be. The bottleneck for new large scale installations, both wind and power and solar, is always the same. Permitting is still an issue, and it's causing delays to the decarbonization process. Again, we should expect that 2023 will be the year where Europe will completely work on simplifying permitting instead of hitting the sector with extraordinary measures and the like. We remain confident about this. Let me elaborate a little bit on the supply chain.
When looking the supply chain, I'm commenting page number 26, it seems a completely different world compared to just few years ago when everybody expected LCOE to trend down forever. In reality, European manufacturers were heavily affected by cost inflation and supply chain disruption. This translated into generalized CapEx increase due to the tune of 30% in Wind and 25% in Solar, at least according to those third providers. Even though in our case, the framework agreements we had in place partially protected our investments by these trends, we expect pressure on supply chain to remain strong in the planned period. It's being factored into our updated CapEx plan.
At the very same time, when looking at investment returns, we also expect this higher capital intensity as well as the higher cost of capital to be offset or more than offset by higher CFDs and PPAs. We can tell you that as far as PPAs, we are already experiencing higher prices to reflect these trends. While for the time being, we can't say yet the same for CFD, which are still lagging behind. In fact, if I turn the page number 27, awarded capacity through auctions in 2022 across Europe has been significantly lower than the one available, partly for the lack of authorized projects, but partly because of CFD's level, not consistent with recent inflection trends. In other words, CFD levels awarded through auctions must be adapted in order to be able to attract the investments needed.
Only France and Germany have amended a little bit, the auction rules, increasing the caps, providing for more, window of time under merchant prices, still not enough, as recent results demonstrated. We expect 2023 to be the year where member states will work on adjusting and adapting those mechanisms to boost RES growth. In the meanwhile, PPA will remain our main tool. In fact, I'm on page number 28. The positive news here is that PPA market is globally taking on more and more a crucial role as an effective alternative route to market for new renewable projects. Despite the recent high volatility of energy prices, coupled with uncertainty about the regulatory evolution has slowed down PPA deployment in Europe, we nevertheless see this growing trend to continue in the forthcoming years.
Let me now update on our targets for 2026. The strategy is still there. Basically unchanged. Given the market context we have been talking about so far, we thought an update on main KPI was needed. And so we are. Page number 30. Growth. We confirm our target to reach 4.6 GW of installed capacity by 2026. That will become about 5 GW in 2027. Investments and EBITDA. To do so, we would need higher CapEx, from EUR 2.9 billion-EUR 3.5 billion. At the very same time, we see an higher EBITDA in 2026 from the previous EUR 560 million to more than EUR 650 million. Through to market. We are also confirming our target to have 85%-90% of quasi-regulated EBITDA, so backed by incentives, tariffs, or PPA.
This is consistent with an investment grade profile and the financial policies with a 4 x net debt to EBITDA ratio. We are confirming our geographical diversification to de-risk the portfolio. We want to push more on solar PV in 2026. In fact, we expect basically 25% of our portfolio to be made of this technology. As far as innovation is concerned, we are working on a pipeline of projects in battery storage, and we are exploring some opportunities in other business lines, such as floating offshore, though it's too early to say something, and there is no megawatts included and no CapEx whatsoever included in the business plan. Asset rotation. We are relaunching the CCGT disposal process as part of our transformation into a pure RES player. We remain committed to it. We want to close it down by 2023.
ESG remains at the core of our strategy. We improved some targets, leveraging also on the strong results we reached in 2022. Last but not least, dividend policy was raised EUR 1 per share from EUR 0.90. We think it's sustainable during the business plan period. Now, moving to page 31, we here have provided you with the same breakdown of the 2.2 GW needed to reach 2026 installed capacity target. I think this number gives quite high visibility to our target for 2026 because 0.6 GW have already entered into operation in 2022. This, remember, is a comparison on the very same years, 2022, 2026, but 2022 is already actual. In 2022 and in the first...
In the start of 2023, we installed roughly 600 MW. On top of that, we are working, we are bringing forward 300 MW currently under construction. 0.4 GW will come from our proprietary greenfield pipeline, wind and solar. 0.1 from repowering projects already in a very advanced phase of authorization. 0.8 GW, so slightly lower than the number contained in the previous plan, we expect to come from M&A and co-development. Another stream will come from battery storage, though limited. Geographical and technological diversification will be pursued. We expect to have almost 60% of our asset base outside Italy in 2026, when about 25% will be Solar PV. Let's move on.
Here, a little bit more visibility on what we have under construction right now, 422 MW on a gross basis, which is basically the same number I just mentioned in the chart before, 300 MW, if we consider it on a differential basis, so including the megawatts we are going to switch off from repowering. It's important to highlight that we have right now an important stream of repowering under construction, meaning that we are finally realizing our idea to rejuvenate the assets while increasing significantly the energy productions. Current construction sites are spread out in Italy, U.K., and France. All these projects are well on track, and you can find all the details in this chart. Let me, page number 33, let me elaborate a little bit more on CapEx.
It has moved from EUR 2.9 billion to EUR 3.5 billion, over the same period of time, 2022, 2026. Basically, half of the increase, say the first two histograms, are fully justified by a higher quality of assets. As regards M&A, we paid in 2022, it's not a secret, we already publicly announced, higher multiples on a EV per MW basis, but with a better cash generation profile and EBITDA profile. It's also reflected in our improved EBITDA target over the plan period. We also have open EUR 1 billion CapEx more associated to new projects, the powering project with commercial operation date in 2027, which weren't included in the old plan. The remaining EUR 4.3 billion are basically overruns related to the green inflation explained earlier, and which is impacting all the sector.
Please also consider that out of the EUR 3.5 billion, that's quite important, about EUR 1 billion, was already invested and expensed in 2022. A few words on the EBITDA evolution, page number 34. Here we show the trend from 2022 EBITDA net of clawback to 2026. We prefer to present here the number of 2022 net of clawback in order to give you a like -for -like comparison. At the end of the plan, we expect an EBITDA in excess of EUR 650 billion compared to the EUR 560 billion, that was the number of the old plan. Out of the total, we expect 85% to come from solar with a more or less 50/50 split between Italy and abroad.
We also expect 85%, 90% of our EBITDA to remain backed by price stabilization mechanisms. As simple as that. Now to Michele again for some detail on our capital structure.
Here you find a picture of our financial structure, a solid base for our business plan. The last part of 2022, we signed a EUR 600 million ESG-linked revolving credit facility, enhanced the liquidity profile of our group to cover any short-term needs and to be ready to catch in the short-term, any opportunity that may arise to accelerate our growth. We are currently referencing EUR 0.3 billion of corporate loans expiring in 2023. At very competitive conditions, thanks to the pre-hedge executed a few years ago, that allow us to benefit over five -year interest rate swap near to zero. We do not have any further referencing needs until 2025. This is a very important distinguishing point for our financial structure.
Our financial structure we saw before translate into a solid investment grade financial profile, which we are committed to maintain in the whole business plan period. The investment grade rating is the pillar of our financial strategy. On this base, we can lever our growth, maintaining a competitive cost of capital, which, as you can see, we expect to remain low, in particular, in the first part of the business plan. We see our current rating consistent with the leverage in terms of net debt EBITDA of up to 4 x, which already include a dividend payment of EUR 1 per share, sustainable in the planned period. Now I move over to Emanuela for third party.
Thanks, Michele. Now let us focus on ESG. We start from page 29. Here you find our updated ESG plan, and I show a snapshot of it. We have now 18 targets, which are perfectly aligned to 14 out of 17 Sustainable Development Goals. As far as planet, we are confirming the net zero target at 2040, and we are still working on circular economy as far as our wind repowering and solar revamping are concerned. In engagement, we will continue to support local communities where we operate, with a contribution of at least 1% of our revenues.
In 2023, we will also launch the ERG Academy to involve the younger generations in educational activities on sustainability and renewable energy, with a target of at least 20,000 students by 2026, which could be even higher in 2027, with 35,000 students in Italy and abroad. The ERG Academy will also provide for training activities to all our people, and it will be the basis to define plans for development of our employees. As far as people, we are enforcing our commitment in the D&I in order to create a more international and inclusive ERG. I will explain more in detail our design strategy in a specific track. As far as governance, we want to maintain a best-in-class governance, and our commitment to ESG is still well embedded in the short term, long term management remuneration.
As Michele explained before, our financing is now mostly green. In our plan, we are committed to keep it green with at least 90% of our loans classified as green funding. To sum up, I will say a strong ESG strategy based on well-defined KPIs that will be monitored throughout the plan period, and even recognized by the significance we did in 2032 in all the ESG ratings. Here, I'm on page 40, I will share with you the achievements that I was mentioning before. We are continuing to receive important external recognition, improve our ESG ratings, and we are amongst the top tier in ESG practices, thus recognizing the strong commitment towards ESG, which is well embedded in our strategy.
We are well rated in all the pillars of our ESG plan from the planet, with inclusion in the A list from the CDP for our commitment toward decarbonization and action toward climate change, and from our supply chain, as we have been welcomed in the CDP Supplier Engagement Leaderboard, recognizing the value of our sustainable procurement. Even in the area of people, we have been included, and we also improved our rating during the year in the Global Gender Equality Index, thanks to our commitment in the D&I and to the full disclosure we are providing for as I refer to this issue. In governance, Moody's included ERG in the top 2% of the world ranking with a score of 65 out of 100. Our ESG approach has been valued even by external recognitions. Now decarbonization. I'm on page 41.
One of our priority remains the actions towards climate change, which is becoming more and more evident with increasingly frequently extreme weather events. From this perspective, our journey led us to decarbonize our portfolio assets significantly. The actions taken over the last business plan allowed us to reduce our carbon index further by 11% in 2022. Another significant step will be taken with the compression of the asset rotation, as Paolo was explaining to you before, which will be zero direct emissions. Decarbonization of our portfolio remains at the center of our strategy. Net zero. I'm on page 42. It's evident that climate change is becoming one of the main risks the entire system is facing. Temperatures in Europe have increased at more than twice the global average over the past 30 years, the highest ever encountered in the world.
As the warming trend continues, exceptional heat, wildfires, floods, and other extreme climate change impacts will affect society, economies, and ecosystems. In this context, our commitment towards decarbonization and net zero remains a key priority for the ERG. We are aiming at becoming net zero by 2040, and we are waiting for the last approval by Science Based Targets. I hope it could come in the next couple of weeks. Let me remind you the key steps. It's crystal clear that the asset rotation will be clue to getting to net zero. We are relaunching, as Paolo explained, the CCGT disposal, which will bring Scope 1 and Scope 2 emissions to almost zero. Secondly, of course, we remain committed in enlarging our asset portfolio, and we will keep on covering our energy needs with green energy. A key aspect of our strategy is also supply chain.
In the sustainable procurement, we are aligning our supply chain to our ESG targets, helping them to improve their performance in the clear focus on the reduction of their carbon footprint. The EU Green Taxonomy, I'm on page 43. After the asset rotation, ERG will be perfectly aligned to Green Taxonomy, a clear sign of our commitment to decarbonization and climate change. As simple as that. On chart 44, a focus on D&I. We want to achieve a just transition, we do not want to leave anyone behind. This represents our inclusive approach, as we want to keep on working to create a more inclusive and international ERG where everyone might play a critical role in the decarbonization path. As part of our ESG plan, we have three main targets to foster gender equality and promote greater internationalization of our company.
Last year, we said we wanted to increase the number of women amongst the key leader. That's what we did. We went from 14% to 18%, and now we want to continue this trend, reaching a level higher than 25% in 2027. As far as our internationalization, in 2022, we made an important advancement. Key leaders abroad went from 8% to 20% as part of our commitment to pursue international growth. We are improving this target for 2027 to higher than 25%. As far as women in workforce this year, without considering CCGT, we already exceeded our target of 25%. We're now at almost 38%, and we intend to at least keep this target in the range of 25%-30% till 2027.
All of us are strongly committed to create an inclusive energy where all the people can express their talent, also by leveraging on an inclusive culture, which is at the basis of the sustainability of the project. Now, over to Paolo for his final remarks.
Thank you, Emanuela. Let me conclude by giving some guidance for 2023. EBITDA first, we see it in the range of EUR 500 million-EUR 550 million, higher versus 2022. The net of clawback, I remind you, was EUR 502 million. Let's point out the clawback impact. Clawback measures, sorry, are still in place. As you can see in the chart, the numbers are affecting also 2023 by an amount which is expected to be stronger than the one in 2022, being most of caps effective since December 1, 2022. Even though it's difficult to estimate this number, but you can imagine and figure out looking the figures, the amount expected desire in 2021.
CapEx, we expect to invest between EUR 400 million-EUR 500 million. Those investments will be mainly related to the assets that right now are under construction. Of course, we can lever on our financial soundness to accelerate the CapEx plan, if we may find some interesting opportunities on the M&A side, and we are for sure working on that. The net financial position is expected to be slightly lower than the one at the end of 2022. In the range of EUR 1.3 billion-EUR 1.4 billion. This thanks to the strong cash generation we expect in 2023, which is not even adjusted by the EBITDA.
As said, we expect in 2023 to have all the reversal effect related to the mark-to-market derivatives, which still accounted for EUR 150 million or a little bit more than that at the end of 2022. Those are the traditional guidance that will be updated quarter by quarter as usual. Let me conclude, I'm on page number 47, by summarizing, say, the main targets of the plan. Let me go through them one by one. Capacity, I said 4.6 GW in 2026, while we see 5 GW in 2027. EBITDA, about EUR 600 billion, EUR 650 billion, of which 80% secured or stabilized through any kind of mechanisms, incentives, CFD, PPA, and EBITDA that will be based on a quite significant geographical and technological diversification.
We expect to invest EUR 3.5 billion over the 2022-2026 period. I repeat, out of which almost EUR 1 billion already done in 2022. The CapEx we are envisaging in our business plan is fully compliant with the United Nations SDGs, just to recall the importance of ESG in our model. Very limited maintenance. As you know, you can assume a figure in the range of EUR 10 million-EUR 20 million per year for maintenance. Net debt, we expect net debt to increase the leverage, say, up to EUR 2.3 billion in order to boost and to sustain the growth envisaged in the plan, but in accordance with a sustainable investment grade rating.
Dividend, I repeat once more, a stable yearly dividend of EUR 1 per share. You know our dividend policy has always been based on an absolute amount of dividend, which currently is EUR 1 per share. Thank you very much for your attention. We are now ready to take your questions.
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We will pause for a moment as callers join the queue. The first question is from Roberto Letizia of Equita. Please go ahead.
Yes, good morning, and thanks for taking my question. A few questions at the beginning, maybe some follow-up, leaving space to the colleagues. First, a comment on the new directive that we saw yesterday from Europe, with regards to the new market design. Since Europe is no longer looking for a strict separation of two markets, but just leaving currently different markets as they are, but pushing for, of course, a higher penetration of PPA market and long-term negotiation with CFD contracts in case of incentive. Maybe you want to give some comments on these if this is in line, what were you expecting, if this is a potential upside to your business model?
In the explanation of this question, but also on the price assumption that we saw in one of your slide, if I got it correctly, your business plan is based on prices between EUR 70 and EUR 90 per MWh . Is this range of level we should expect for new PPA contracts signed in the coming year? Do you expect specifically for new PPA something different, also considering of the new market design as mentioned before? A very tricky question. I don't know how what you can say about that, but you still have a committed new shareholder in the sub-holding above you, which possibly sustains growth of the group in the coming years. Is this something that has not been yet talked again, and actually it is potentially affecting the strategy?
It actually asked also by investor as a questioning on what is gonna be the role of these new shareholders and how a potential new commitment materialize in the control of ERG. This, I would say, creates some uncertainty, I leave you as a comment, and many shareholders which fear any potential deal or operation which is unclear. I don't know if you can just elaborate a little bit on this. I leave space to the colleague and maybe some follow-ups later. Thanks.
Okay. Thank you, Roberto, for your questions. I'll try to answer one by one in chronological order. Say, about the market design, let me say, I always been saying that the only way to decouple conventional and renewables or from marginal technology is to keep going on with CFDs and PPAs. Now Europe came to the same conclusion, apparently, because there's been a lot of talking, different ways that decouple the two markets, but it's impossible in another way. We remain convinced that this is the only way. It's a very easy way. It just, say, the time just to adapt, say, these mechanisms to the current environment. Let's take for instance, the CFDs and the auctions. Let's take for instance, the last auction results in Germany.
They raised the price cap at EUR 75 per MWh, the capacity they allocated was less than half the one available. That means that even the higher capital intensity, the sector as a whole needs to have higher prices, say, for a longer period of time in order to make reasonable returns that can attract investments. I'm not scared about the market design, because as said, the only way to do it and to implement it is going on the same way we have done so far. We see it positively instead, because we expect in 2023, Europe with a sort of jet lag, let me say like this, they will realize the only way to push forward the energy transitions is to adapt these price mechanisms.
We expect all the countries to work on that instead of introducing extraordinary measures that resulted, as you can see, not just for ERG, but for all the operators, very penalizing. They are subtracting resources that would have been available for the energy transition. About the price assumptions, yes, we reported in some chart our expectations that are basically in line, if you see the first years, very in line with the forward market. Please consider that our revenue structure is for a major part related to CFDs, incentives, PPAs. We have no full exposure to the price scenario. Let's say basically for 2023, basically 70%-80% of our revenues are already based on tariffs and hedging and whatever stabilization mechanism.
Going forward, yes, you are right. We expect prices to cool down a little bit, but still remaining higher than the expectation we had just one year ago. Capital intensity is higher, the interest rates and then the cost of capital is higher, and I suppose the substitution of Russian gas from other gas coming from other countries, and particularly LNG, is not at the same price the Russian gas was. About the new shareholder, I can just say that one representative of the new shareholder enter into the board, and they are acting very, very proactively. They are supporting the business plan.
They, with us, approved, yesterday, the business plan in the Board of Director. We are all thrilled to, say, carry our objective forward. We are confident that we have all to succeed and to reach the results we set out in the business plan.
Sorry, just a clarification on the prices. Sorry if I ask that again, the EUR 70-EUR 90 in 2026 as an exit price for the business plan. I was looking if this is a price range that you consider what the market is gonna express for the PPA. You signed a PPA recently with an Italian group, maybe you can just give a little bit of detail on what the pricing expressed by PPA contracts in this market. Thanks.
I say for obvious reasons of confidentiality, I can't say the exact value of the pricing of our last PPAs, but let me say that they are very much consistent with the price scenario as being reported here in the chart. Figures that are well above the prices we could imagine just one year ago. They are pretty in line with the Feed-in Tariff we have been enjoying, say, in the last decade. Near around EUR 100 per MWh . Let me say like this. I hope to have answered your question.
Yes, thank you. Thank you.
The next question is from Enrico Bartoli of Mediobanca. Please go ahead.
Hi, good afternoon, thanks for taking my question. First of all, a general question on the strategy. You kept your target, you know, 4.6 GW unchanged for 2026. In the last year, since you presented the plan in March 2022, several things have been moving on, particularly in terms of political support, in terms of better pricing. You mentioned the better environment for PPAs, also on the wholesale market. I was wondering actually what is preventing you from accelerating the development of capacity. You are expecting probably more visibility on the new price-setting mechanism by the EU from the revision of the CFD mechanism. Just was wondering what could trigger a further acceleration in your CapEx.
Second question is related to the IRRs that are implied in the new PPA guidance for 2026. I see an increase in also some inflation in the CapEx. You are now in environment higher cost of capital. I was wondering how, compared to the previous plan, your IRR assumptions were moved, and also interest spread between IRR and WACC. Last one is related to the guidance for 2023. If you can guide us a bit on the moving parts that you expect during this year in terms of the hedging price that you have locked in in 2022, the capacity additions, and how you think that will move EBITDA in Italy and outside Italy during this year. Thank you.
Okay, thank you, Enrico, for your questions. Again, in order, chronological order. The target of 4.6 GW at 2026 is also consistent with the financial power of the group, in the sense that we have still a quite big headroom from a financing point of view. Don't forget, we wanna keep our investment grade rating, and then we need to stay below the 4 x net debt to EBITDA. We expect, based on the business plan we are today presenting, to deleverage the group now to 2026. This is one constraint, let me call like this, we have to our growth.
I can also say that the target we set out for 2026 is very much consistent with the pipeline we can rely on today, because if you see the portion that will come from M&A is basically the same as the previous plan, or even less than the previous plan, because part of it has been already done in 2022. For sure, we have the financial power to accelerate the deployment of the installed capacity. That's what we will try to do. We will try to accelerate as much as possible, of course, pushing on M&A deployment of capital, and then the megawatts, let's say, in our, in our portfolio. What prevents to further accelerate is, I don't know, it's based on our pipeline.
We have this pipeline, we don't want to let's say enlarge the number out of the projects where we are sure we can bring forward within a reasonable horizon of time. The reasonable horizon of time for us is five years. Of course, pipeline is something that evolves over time, as we demonstrated in these numbers, because every year we try to add new projects. We are doing a very good work on Solar PV in Italy, in France, in Spain. As you can see, a large portion of our pipeline is now based on solar. We prefer to remain, you know, as you said, conservative while providing our numbers.
For sure, the acceleration could come from M&A, but maintaining our strength in the financial structure, which is an hallmark we want to maintain in our business plan. About the returns, I had already the chance to touch this point during my speech, but I repeat it with a little bit more details. For sure, the cost of capital has increased quite significantly over the last 12 months. In our case, but I think it's a general view, the WACC has increased between one and two percentage point, even though our cost of debt has remained basically flat. When we assess new investment, we tend to use a theoretical WACC. It is much more consistent with the interest rates.
Seeing the cost of debt, and it's basically fully hedged for the next few years, is 1.4%. If we used that cost of debt, we would come to a much lower WACC than the one we use for investment purposes. On top of the WACC, we some buffer that depends very much on the kind of projects we are talking about. If it's a project fully secured from a root to market point of view, then the spread could be in the region of 1%, up to 2.5%, depending on seven on its root to market and the country where the project is based on.
For the time being, I would say, the key message is, the increased CapEx and the increased cost of capital, at least for our project, I can assure you, is more than compensated by higher pricing. We see, and we have executed, at least for the time being, in our PPAs.
The third, there was a third question, right?
About the guidance. Okay. It is a little bit more complex. Guidance, our guidance for 2023 is net of global measures, which as said, are different country by country, despite the European regulation, Regulation (EU) 2022/1854, guided, say, the member states to introduce a price cap of EUR 180. That wasn't the case. In many country where we are, there are different price cap. Let's take Italy, for instance.
In Italy, we have two caps. One is related to the Article 15bis which covers, let's say, all the rest assets with a commercial operation date before 2010. Here, the price cap is at EUR 60 and should last till June 30. For the other assets, there is a cap of EUR 180 per MWh , in line with the European regulation. For the Solar PV, under the so-called Conto Energia, again, Article 15 applies. We have a cap for the merchant portion of EUR 60. The picture is not as simple as it may seem when looking the European regulation. In the end, every state converted into different rules, into different price cap. I just gave you the example of Italy, but let's move to France.
In France, the price cap, which is not EUR 180 per MWh, is EUR 100 per MWh . In Germany, price cap is EUR 120, EUR 130 . In Spain, Poland, Romania, there are different price cap ranging from EUR 70-EUR 90. Okay. Even in the countries where the MWh 180 has been taken, for instance, Bulgaria and Sweden, they have introduced an hourly settlement that results into a much lower real price cap. Because if you measure the cap hour by hour, the hours where the price is higher, you give money back. Okay. When the price is lower, nobody will give you back what you have left for the price cap. Okay. So the picture is much more complex than the one it may seem from the outside reading the newspaper.
It's much more complicated from an operational point of view. Coming back to the guidance, we gave a guidance between EUR 500 million-EUR 550 million, which is completely net of our best estimates of the impact and the effect of those, say, uncoordinated measures across Europe. The effect of those measures is expected to be significant in 2023, and based on our best estimate, could be in the region of EUR 100 million, and shouldn't become as a surprise risk because most of those measures are effective as of December 1st, 2022. In 2022, Michele has shown you that the cost, the total cost, the total impact of these measures was EUR 91 million before taxes and EUR 83 million after taxes.
70% of this amount comes from Italy and is related to fiscal measures, Article 27, and the Solidarity Contribution as per the budget law. Okay. Those are fiscal measures. Plus EUR 35 million that is in our EBITDA. Most of it comes from the clawback measures effective as of December first. You can. We do not expect further windfall taxes, and I think over the last few days, Europe was quite clear on that. Even yesterday, they repeated that they don't want state members to introduce further windfall taxes because this should result in penalizing the energy transition. Still, there is uncertainty about the duration of those measures, which on paper should last till June 30.
In reality, some states, like France, for instance, introduced the cap till the end of 2023 before waiting for the resolution of the European Commission. Let me say it's a patchwork of different measures, or let me say my way, it's a mess, and we hope in 2023, Europe, I mean, the European Commission, will realize that those measures will turn into slowing down the deployment of investments and the deployment of the energy transition. We remain confident that Europe will, in the end, cancel those measures and will push forward investments. If not, the targets they have always declaring to the world will not be sustainable. We do not see other solutions to this, to the energy security and to the decarbonization. To fight, don't forget, climate change.
Because nuclear is too long to come. It's impossible, it will be a reality in the next, say, 10 years, 15 years. New, again, new nuclear. RES are the easy and at hand solution, in our opinion, for the energy, for the energy transition. Let me come back into the guidance because I am passionate about this. Means, the guidance is already net of what we expect to be an increase in the region of EUR 100 million coming from those measures. In other words, if there weren't those, say, global measures, the guidance of the EBITDA would have been roughly EUR 100 million higher than the one we just disclosed.
From an accounting point of view, this is the guidance we decided to give to the market because it's more consistent with the cash generation we expect from the company. From an accounting point of view, we will discuss with our auditors, the two of the auditors, the best treatment, but if it were for me, I would say those should be treated as temporary and extraordinary measures, because in the European regulation it's written like this. I hope to have clarified this point because it's very important. The guidance is very much limited by all these measures. Enrico, I hope I've answered your.
Yes, thank you. That was clear. Just if you can add a quick comment on net of the effect of the clawbacks that are going to be the moving parts that are actually leading to from EUR 400 million adjusted in 2022 to 2023. The contribution from new capacity. If you can give us a favor on the pricing evolution that you assume in that guidance?
The price, let me say, given those price cap is limited in the sense that we expect a negative price effect compared to 2021, when Most of those measures weren't in place. The growth should come from new investments. Don't forget, We installed 560 MW in 2022. Those megawatts are basically fully up and running right now. On top of that, other megawatts, say, we expect further 300 MW to enter during the course of the year. Some will be already in service for the 2023 part, will be contributing in 2024. Part of this will be in service over the course of the year, so giving further contribution.
Let me say, all in all, the price effect on our guidance is significantly negative. All the growth will come from a perimeter, so means new installation, new megawatts, new installed capacity. Another important part from higher volumes, because as you have seen, the last part, in particular the last part of 2022, was very negative in terms of wind availability. In particular in the fourth quarter, we lost a lot of production compared to our budget. It's not just ours, ourselves, but whole all Italy, all Europe, was under low wind conditions, especially in November, December, when we enjoyed a 25 degree Christmas. Those are the two main contributors, the new capacity and the expectation for higher volumes that more than offset a lower price effect in 2023.
Perfect, Paolo. Thank you very much.
Thank you.
The next question is from Naisheng Cui of Barclays. Please go ahead.
Hey, good afternoon. Thanks for taking my questions. I have a few, if that's okay. The first one is, could you please give us an update on your CCGT asset sale? Do you expect that to happen this year? The second question is I know you have a very large solar pipeline spend. Some of your peers are talking about a much lower unique CapEx cost and a PPA price around low EUR 40. Just wondering if you can talk about the competition you face. The next question probably related to that. I'm still a bit confused by IRR. Just wonder if you can give a little guidance on your IRR, especially for the new projects. Do you have a hurdle rate? Last question probably on dividend, just want to understand the rationale for the dividend increase for our strategic shareholders involved in there. Thank you.
Okay, Naisheng. Say about the CCGT, absolutely yes. We are relaunching the process to sell the plant. We needed, first of all, to close down the profit and loss for 2022, which will be the reference account for any buyer. We are actively working with the idea to receive the offers say in the next forthcoming months and for sure to close the transaction before year-end. That's a very strong commitment I can confirm to the financial community. About the CapEx, I don't know our peers, but for the time being, our projects have a CapEx per megawatt which has been well protected by the framework agreement we had with some important OEM.
Going forward, exiting the framework agreement, for majority of the projects that are in the new business plan, we have to stay with the market. The market, it's different than the one it was one year ago. If you look at the numbers reported by the main listed companies providing technologies for wind and solar, you could see that the pricing, the capital intensity is going up. We benchmarked with other parties, our CapEx per megawatts.
We have tested it with our procurement department, we are quite confident that the CapEx we have in the business plan are very much consistent with the, with the current trends in the market for wind turbines, for BOPs, for solar panel, for lithium, for the battery storage, and so on. Let me repeat. When it comes to returns for the investment, the last projects we have approved and we have concluded had a return near double-digit or is sometimes even more than double-digit. Thanks to the fact that the PPAs we cover those projects were well above the initial estimates for those projects. That, and this has much more than compensated for the overruns, some overruns or the higher cost of capital.
Let me say, another rate. It's difficult to say another rate because depends on geography, depends on technology, depends on the route to market. Let me say, in the region of 6%-8%, sometimes even more. In some geographies, for instance, in Eastern Europe, you're looking for other rate well above double digits, for instance. If you take as an average between 7% and 9%, unlevered, you are not far away. This is another rate. We try to optimize the value of our projects, working on the PPAs, working on all around 360 degrees the project. As I think our numbers are demonstrating.
Go ahead, if you want to add something, say it.
I think there's one more question on dividend.
Sorry. Can you repeat it please? Because-
Yeah. I just want to understand the rationale for the dividend increase and how are the strategic shareholders involved when making that decision. I mean, strategic investors, including IFM Infrastructure Fund.
I say, consider that with this trend for inflation, the fact that the net profit of the company has been much higher than the one expected in the business plan. Considering the positive view we have for the forthcoming years, considering the fact that the company right now is under-leveraged, we see this increase as absolutely sustainable, and our value proposition is always the same and probably different from our peers. We want to have a fair mix of growth and the remuneration to our shareholders. That has been and will continue to be our value proposition.
Understand, Paolo.
You're welcome.
Any further questions, please press star and one on your telephone. If you wish to ask a question, please press star and one on your telephone. Mr. Merli, there are no more questions registered at this time. Excuse me, there's one more question from Roberto Ranieri of Stifel. Please go ahead.
Yes. Good morning, everyone. Just one question, if I may. On the supply chain issues, you, Paolo, were talking about the supply chain issues potentially in the future. I'm wondering if, you know, and you are in to reduce these supply chain issues. I'm wondering if there are, in addition to that, there could be also grid connection issues in terms of, you know, bottlenecks, not only in Italy, but all over Europe. My question. If I may, just one more quick question on the framework agreement that you have with your suppliers.
I'm wondering if this agreement could be revised in case of CapEx inflation. Thank you very much.
Okay, Roberto. My thought with grid connection, let's say the All the projects we put in the business plan already includes say the timing of the connection availability based on the say the the current operational plans of the various DSO, as well the cost of grid connections are already updated based on the offers we received when we have visibility on this. On the more, say, backloaded projects in the plan, the one in, we have accord in 2026, 2027, for instance, among those, there are three quite large projects we are we've been working on in Spain, Solar PV.
There we are waiting for the so-called Concurso de Capacidad, which should be taken in 2023 in order to gain a little bit more visibility on the timing, on the cost, and so on. But let's say that we have been sufficiently cautious on our plan about this. About the framework agreements, I'll leave Michele, our CFO, who is also in charge of procurement in the group.
Yeah. In framework agreement with in ERG that we are, all the construction that are currently ongoing that will reach our commercial operation date in 2023 and 2024, are covered by the framework agreement. After this period, the framework agreement basically expires, and we stop benefiting from the prices set at that time. Having said that, the framework agreement remains as a strong contractual base with these two suppliers. In this specific moment, we do not see this is the right moment to fix in the long term the current prices of the wind turbines for a prolonged period of time.
The strategy for the time being, for new orders that we'll do in 2023, 2024 for a plan that will enter in operation in 2025 to 2026, will be based on vendor, with vendor projects, putting in competition the various suppliers, in particular for wind, but there's more than two than for solar, in order to get the best condition possible.
Again, the framework agreement is, you know, a strong contractual protection that will remain because it's the standard of our relationship with the, a key supplier, some key supplier, but we'll be open again to find a new supplier that can allow us to be competitive also in term of CapEx cost.
Thank you.
The next question is from Emanuele Gjoni of Kepler Cheuvreux. Please go ahead.
Thank you. Thank you for the presentation. Good afternoon. I have only two, three question left. The first one is a check basically on the acquisitions included in the plan, in the investments plan. Embedded in target. Basically, some 0.4 GW have been included in your target, and to get EUR 2.5 billion of capital expenditure in 2023-2026, so excluding the past, excluding 2022, we can get an implied valuation of EUR 1.5 million-EUR 1.6 million per MW for a total cash out of EUR 0.6 billion.
If we consider, if you assume the CapEx per megawatt you displayed, you disclosed on slide 26 for Wind and Solar, and for the additional capacity of 0.8 GW for Wind and zero point... So basically that, and 0.9 GW for Solar. Could you confirm my computation? Thank you. Still as regards the CapEx per megawatt, I suppose that this is referred to greenfield projects mainly, but I would like to understand or to, if you can update on the CapEx per megawatt for repowering in Italy. So I suppose this is lower compared with a greenfield. The last final question is on the CCGT disposal plan.
Of course, recently, the Italian National Strategic, this plant, owned by ISAB, was included among the facilities under the Italian National Strategic Interest. I wondered if this could increase the visibility of the future cash flow on this plant and thus speed up, or facilitate, at least support, your disposal process. Thank you.
Okay, Emanuele. Thank you for your question. The first one, yeah, your computation is quite right. Say, on average, you can assume EUR 1.5 million per MW. Consider please that the unknown or the M&A we put in the plan is in our mind more oriented to solar PV. The EUR 1.5 million is on average between the megawatts for wind, the CapEx megawatts for wind, which is higher, more in the region of two, say, and solar more in the region of one, just to rounding the numbers. On average, the number you said is not far away from the one we have in mind.
Please consider the having a quite big pipeline on Wind and having today a higher stake in our portfolio of Wind versus Solar, the M&A tool will be more used for increasing our, let's say, stake in the solar business. For the greenfield and repowering, if you want, the EV per megawatt, for sure is lower than the one for M&A. It's obviously evident. Before repowering is a new project. You know, there is, you don't save. The only thing you save, say, is the goodwill you may pay for buying the right to make the project. That's for sure.
The cost is absolutely in line with a new greenfield because, like I said, you have the cost of dismantling the old towers, this is will more than compensated by the fact that usually the repowering is being done where you have the highest wind availability, and also the connection is already there, is already done, etc. In our business plan, say the cost -per -megawatts of our wind is moving from say EUR 1.2 million-EUR 1.3 million at the very beginning, the first years, where parts of the construction have already been negotiated, to EUR 1.4 million-EUR 1.5 million in the next years, so in the last part of the business plan.
This is more or less the EV per megawatt that we have in our business plan. You have all the figures to extract these numbers because we provided the CAPEX, the breakdown of the CAPEX, and the breakdown of megawatts. Please consider that the return of the projects are not just based on CAPEX, are not just based on the route to market, so the price at which you sell the energy, but also the quality of the projects. We are repowering, for instance, the best assets where we can, changing the layout of the wind farm, changing the platform of the wind turbines, we can extract three or four times the production plant used to generate, making the real return of the project. I hope I have...
I think I have touched, all.
Thank you for your clarifications. It was a last question on the CCGT disposal. The plant was included in one of the facility from the Italian National Strategic Interest. This could be supportive for your disposal process.
I say absolutely, we see positively the recent evolution, the sale of the recovery. We are waiting, as you, to understand better the government, what is going to do with the Golden Power. The expiration of time for taking a decision, I think, is in the next few weeks. We will know more, say, by the end of March. Also, the decree that makes the old site as a strategic site for Italy is guaranteeing, say, the continuity of the site, and it can help. We are, repeat, we are confident that to find the right solution for the asset, for our people, don't forget, in the CCGT.
CCGT is not just a plant, but is a company with an organization structure, and we heard much about this. We want to sell it at the right counterpart, a counterpart that can guarantee the continuity of the business. As I said, we hope in the very coming months to gain much more visibility on the outcome of the process. In the next webcast, I hope to be in the position to say a little more
Thank you for your answer.
Thank you to you, Emanuele.
Mr. Merli, there are no more questions.
Okay. Thank you all for the attention. Emanuele and our investor relations team will remain available for any clarification follow-up you may have. I look forward to meeting with you the next occasion. Good morning, everybody, and thank you very much.
Thank you.
Thank you.