Good morning, ladies and gentlemen. Thank you very much for joining us today for this presentation of 2020's results for Grupo Red Eléctrica, as well as for the presentation of our Strategic Plan 2021-2025. Thank you for everyone who's following this webcast. I'm here with the CEO of the group, Roberto García Merino, and our CFO, Teresa Quirós. They will be going through all of the topics in detail, and at the end, we'll be happy to answer your questions. Before Teresa begins with the results for 2020, I'd like to make a very brief introduction about the context in which today's presentation is taking place. We find ourselves in a global scenario of profound change, with our seeing an acceleration of change, both from the economic, environmental, and social point of view, with tremendous levels of complexity and uncertainty. These changes are both geopolitical and technical.
We see tremendous disruption with climate change, but of course also with demographic changes, which will accompany us in our exit from the COVID-19 pandemic, which has had such an impact on 2020 and this year as well. Changes which have accelerated as a result of the pandemic, and governments and international organizations such as the European Union have responded with massive aid packages. Central banks have also responded by introducing measures to promote liquidity and economic activity, particularly for those sectors that have been hardest hit as a result of the lockdowns and the restrictions of social mobility, and also to promote economic growth once we are beyond this health crisis. This very complex context will be defined by the evolution of the pandemic and by the success of the vaccination processes that are taking place globally.
It's an environment in which we've also become increasingly aware globally of the need to move forward with the environmental energy transition, as well as the need for a fast digitization. In this period, we have seen many initiatives in the various continents and countries so that we can move towards a carbon-neutral world by 2050. We've also seen an increase in demand for energy with the development of new technologies, which have been tremendously disruptive in the energy sector, so all of these are structural changes, trends that will mean that in 2030 we will be living with a very different energy sector than the one we have today, and the electricity sector needs to be the backbone of this process.
In this context, the Red Eléctrica Corporación needs to move fast and with resilience in order to become an essential actor in this energy transition and also in the digital transformation, and to move with these changes efficiently and effectively, and that's why, together with the 2020 results, today we are announcing the Strategic Plan for 2021-2025, which will prepare the group to tackle these challenges. We want to face them with realism, honesty, and transparency in order to guarantee our sustainability by 2030- 2050. And I'm confident that we will achieve those targets, and let me, before we look at the details of the plan, say that at the end of the presentation there will be a question-and-answer session in which, as I said before, we'll be happy to answer all your questions.
And with that, I'm going to give the floor to Teresa Quirós so she can present 2020's results. Teresa, thank you very much, Chairwoman. Thank you very much.
Good morning, everyone, and welcome once again. It's a shame that we're not able to meet together in our venue here at Red Eléctrica, but it's still a great pleasure to have you follow this presentation once again. I'm going to talk about the results of the 2020 financial year as usual. And before I get into the figures for the year, I'd like to begin by reviewing the most significant milestones of 2020, a year, of course, defined by the outbreak of COVID-19 and its rapid spread throughout the world, which has forced governments everywhere to take exceptional measures and has also had an impact on the Red Eléctrica Group's activities.
We have adopted a series of extraordinary measures in order to fulfill our most important mission as a group, which is to guarantee the continuity and the security of power supply. Therefore, in record time, we were able to deploy a third electricity control center, isolated the key personnel that involved in the operation of the electricity grid, and moved all other non-essential work to be carried out remotely. The electricity system has been running normally, and believe me, it's not been easy. It's not been easy in a year in which the accumulated drop in demand in Spain was 5.6%, and at certain points in the year, it was actually even larger than that. That has been a very significant challenge for the operation of the system, requiring the implementation of the appropriate voltage balancing across the Spanish electricity grid.
Financially, with the Spanish government's recovery and resilience plan, which was presented last October, Red Eléctrica is submitting proposals for projects that will not just contribute to economic recovery, but will also help achieve the goals that have been set at the national level. In this sense, our proposals focus on energy storage in the islands, projects that will allow the increasing inclusion and integration of renewable energy sources, projects for the conservation and increase of biodiversity, projects for the development of new technologies, and to increase telecommunications coverage in the country, as well as innovation and digitization through the deployment of new technologies, and of course, COVID-19 has had an impact on our investments on both sides of the Atlantic, particularly given the very difficult situation of some Latin American countries. There have been some delays in the execution, but overall, the impact has been only moderate.
I should mention the special impact on our telecommunications activities of the pandemic. In our case, that means Hispasat, with significant pressure on some of our business verticals, on prices, and also circumstances that have affected the company's clients, accelerating technology disruption in the satellite business. All of this has accelerated in the second semester of the year, and all of these circumstances have meant an impairment of Hispasat's assets and led to redoubled efforts to prepare the company to take advantage of the opportunities that we are certain will arise in the future. A very important point for the Red Eléctrica group is the process for the planning of electrical infrastructures 2021-2026. Of course, we all know that the system operators sent a proposal to the ministry at the end of 2019.
Of course, you're also aware that in the summer of 2020, the CNMC issued a report with their opinion on that initial preliminary proposal, with recommendations mostly to do with the methodology and some of the proposed actions. Finally, last week, the Ministry for the Ecological Transition and the Demographic Challenge has started the consultation stage for the proposal, together with the Strategic Environmental Assessment. The ministry plans investments of over EUR 6.6 billion, EUR 6.668 billion in fact, of which just over EUR 1 billion will be used to reinforce international interconnections with France, Portugal, and Morocco, and the rest, the other EUR 5.6 billion, to reinforce the national transmission grid, which makes up the national electricity system, and within these EUR 5.6 billion, we include the existing grid as well as the new facilities and developments that will take place in the period between 2021 and 2026.
These investments will be allocated to the integration of renewables and to solving technical constraints, but will also foster the use and improvement of the existing grid, the use of new technologies, and of course, it is designed to minimize the environmental impact. On February 23rd, so just yesterday, the Board of Directors has decided to propose to the general shareholders' meeting a complementary dividend for the results of the year 2020 of EUR 0.7273 per share. This, added to the interim dividend that was paid in January 2021 of EUR 0.2727 per share, results in a total dividend of EUR 1 per share, which is in line with our payout commitments to the market. Finally, I'd like to highlight, within our international business M&A activity, that the group acquired in March 2020 50% of the Brazilian company Argo Energia for an amount of EUR 374.3 million.
Let's now look at the main items in our P&L. Before we begin, I'd like to mention that, as you all know, there have been two aspects that have had a tremendous impact on 2020: the new regulatory framework, as well as the exceptional circumstances due to the pandemic. Turnover in 2020 was EUR 1.986 billion, with income down from transmission in Spain, offset to a large extent by high revenues from the operation of the system in Spain, as well as an increase in the revenues from the telecommunication business due to the incorporation of Hispasat, with income of EUR 155 million. Our EBITDA was EUR 1.569 billion, which is 1% lower than 2019's. This sum includes the almost EUR 119 million contribution of Hispasat. The EBIT is at EUR 929 million and reflects provisions due to impairment in the Hispasat valuation of EUR 122 million.
Continuing with the P&L, the profit of the year was EUR 621.2 million. Without the impact of the impairment I mentioned above, the recurring result in the year would have been 1.8% lower than that of 2019. Our net financial debt reached EUR 6.113 billion, with a cost of 1.74% and a coverage ratio of net debt over EBITDA of 3.9 times, which reflects the financial strength of Red Eléctrica group. Let me now review the P&L in more detail, which you can see in this slide. You can see that our turnover again reflects lower income from the transmission business in Spain, and that is the result, as you know, of the application of the new remuneration parameters that came into force at the end of 2019.
It also includes greater remuneration for system operation with the new methodology that was approved in circular 4/2019, and it includes, as I've said, an increased revenue from our telecommunications business thanks to the Hispasat incorporation. To this figure, we must add the earnings of the Chilean transmission company TEN and the Argo company in Brazil, where we own a 10% stake, which, as you know, are booked above EBITDA. The total contribution of these two companies was EUR 25.3 million in 2020. So we are in a complex environment, and I do want to highlight the efforts that the company has made to control its operating costs, which can be seen very clearly in the evolution of procurement costs and other operating costs, which have increased only 4% with respect to the previous year.
We have to consider that these costs include the Hispasat integration in full in 2020. Provisions for amortizations and asset depreciation reflect the impairment of Hispasat's valuation of EUR 122 million that I mentioned before, which is the consequence of the need to adapt the value of the assets to the new business context caused by the pandemic, which has accelerated in the second half of the year, which has meant a slowdown of our commercial activity and the renegotiation of contracts because of the difficulties experienced by our clients in different countries, as well as the adverse evolution of exchange rates. All of this has been incorporated into this new calculation of Hispasat's valuation. Our net financial cost was EUR 123 million. That's almost EUR 9.9 million improvement with respect to 2019. We have an average gross financial debt at EUR 6.953 billion.
That's almost EUR 1 billion higher than in 2019, which is offset by a drop in the average interest rate from 229 in 2019 to 174 in 2020. Net profit, as I mentioned before, was EUR 621 million, which is 13% down in the year. But I'd like to point out once again that if we compare the underlying profit of 2020 of EUR 703 million with that of 2019, EUR 715 million, the drop in profit 20 versus 19 would be 1.8% in this comparison in spite of the sharp drop in the revenue from the regulated business in Spain. The effective tax rate was 24.3%. Going into more detail about some relevant items in our P&L, I'm going to now look at the breakdown by businesses. We can see a gradual increase of the contribution of non-regulated businesses in line with the group's diversification strategy in the 2018-2022 plan.
As you can see, revenues from operation and transmission activities in Spain have lost some of their weight in favor of the telecommunications infrastructure business, which in 2020 has contributed almost 14.5% of our total revenues. And the same applies to our EBITDA. However, management and operation of electricity infrastructures in Spain continues to account for over 80% of the company's turnover and EBITDA, which shows once again that this is our core business at Red Eléctrica. I think it's important to mention some of the relevant elements of the group's investments in 2020. I said before that with the COVID-19 pandemic, we have seen a slight impact on some of the group's activities, with the exception of Hispasat. I've also mentioned that there have been certain delays in investments at the national level, mostly due to delays that have occurred in the construction phases during the state of emergency.
As you can imagine, it wasn't easy to proceed normally, and also delays in obtaining permits, and during this period, 2020, we could mention as a very relevant milestone the completion of the Mallorca-Menorca interconnection, also a good pace of investment in control systems and operating applications for the peninsular system internationally, as well as highlighting the Argo acquisition I mentioned before. I'd also like to mention the progress made in our projects in Chile and Peru. In the case of our satellite business, we've invested EUR 52.2 million in the Amazonas Nexus satellite, which is a satellite with HTS technology, which will replace the Amazonas 2 and will provide services, particularly for the American continent and the North Atlantic Ocean. Moving on now to the group's financial structure, you can see the maturities calendar for long-term debt over the next few years.
The average tenor of our debt is currently at 5.3 years, and the amounts that have to be repaid over the next three years are fully covered by our liquidity, which is currently at over EUR 2.4 billion. If we look now at the debt structure by instruments, we can say that we have well-diversified debt, 82% of it at fixed rate to maturity, and with a predominance of the euro over other currencies. I'd like to once again emphasize the strength of our balance sheet with an FFO debt solvency ratio, which is way above the 17% required to maintain our current credit rating. We have been able to access the capital markets in a difficult year, first by issuing our first green bond for EUR 700 million.
I would like to point out that after this issue, 23% of all our financing has ESG criteria and its different aspects. Also, Red Eléctrica Corporación issued a EUR 400 million bond, and we have accessed new bank loans and credit facilities for a total of EUR 475 million. I'm now going to give the floor back to our chairwoman, who will review the context in which we find ourselves, which has been crucial in order to define the new priorities for the company and to define the new strategic plan for 2021-2025. Thank you very much, Teresa. Let me say something now about the macroeconomic context, as well as the context for the energy sector and regulatory framework, so that we can, I think, understand the reasoning behind the strategic plan 2021-2025 that we are presenting today.
There are four structural trends in the energy sector that may cause profound changes in our industry. Of course, the decarbonization of the economy and, in parallel, increasing electrification changes in the demand profiles, new technologies, disruptive technologies, and structural changes in the market. There will be new actors, new role of consumers, and new contracts, and these trends will mean a very different electrical market in 2030 versus what we have today, with more renewable energy connected to the grid, a new definition of the role of the grid, and a strong development of green hydrogen in the coming years.
In the macroeconomic context, the world economy is facing an unprecedented crisis due to the impacts of the COVID-19 pandemic, which has meant a drop in growth in the economies, rather diverse in different parts of the world and for different sectors, depending on the nature of those economies and progress with managing the pandemic and with deploying the vaccination strategies. Spain is a country which is very intensive in some of the hardest-hit segments and sectors impacted by COVID-19 restrictions. In this context, countries have responded by launching massive aid programs. And the EU member countries, last July 21st, reached a very important agreement, adding to the multi-annual financial framework for the EU budget, the Next Generation EU Recovery Plan, with an additional EUR 750 billion.
An initiative which will apply between 2021 and 2023, with investments where a third approximately will be used for the digital transformation and the rest for the environmental and energy transitions. In Spain, this initiative has been translated into the National Plan for Recovery, Transformation, and Resilience, presented by the government last October 7th, outlining a roadmap with four main priorities, which are the environmental transition, digital transformation, social and territorial cohesion, and gender equality. A plan which will be funded with 140 billion EUR. That's 11% of our GDP from Next Generation EU funding. In this regard, Red Eléctrica has already presented a series of proposals aligned with the three pillars of our business model: electricity, transmission, grid, systems operation, telecommunications, and the protection of biodiversity and the environment.
On the other hand, the challenges posed by climate change and sustainable development have been giving rise to many proposals over the years, with a clear commitment to accelerating the energy transition, such as the Paris Agreement, the Sustainable Development Goals, the Clean Energy Package, and, of course, the European Green Deal that we've already discussed. These are some of the most ambitious initiatives to boost the green economy and tackle climate challenges. Sustainability is not just about social and environmental commitment, but also about medium and long-term return for businesses. In this company, we see sustainability in terms of it having a positive impact on all our stakeholders and society as a survival and also as a way to leave things better than we found them.
Spain has also responded by establishing a new regulatory framework, including the Plan Integrado de Energía y Clima, or National Integrated Energy and Climate Plan, which was presented a year ago, which sets very ambitious targets for 2030, and it also defines or provides certainty. It's a roadmap for all actors who are involved in the energy and environment transition. It's a strategic planning instrument, and it's therefore key for the definition of the National Infrastructure Plan 21-26, the draft of which allocates an investment of EUR 6.668 billion to the national transmission grid. This Integrated Energy and Climate Plan, which was presented in its current draft on March 31st, 2020, is an update on the original plan with some additional targets.
In this analysis, with the participation of Red Eléctrica, we see a guarantee of the security of the electricity supply in the electricity generation mix that is defined in the plan for 2030. In Red Eléctrica, we're focused on guaranteeing the security of supply within the context of this plan. This is going to have a significant impact on growth, employment, and public health, and will involve total investments, both private and public, of over EUR 241 billion between 2021 and 2030. As for the transmission grid, there will be an investment of EUR 9 billion. I'd also like to mention that the plan foresees the strategic nature of international interconnections. With Portugal, we'll increase interconnection capacity up to 3,000 MW, and with France, up to 8,000 MW.
Spain has also recently defined its roadmap to decarbonization by 2050, with a long-term strategy for a modern, competitive, and climatically neutral Spanish economy by 2050. A long-term strategy which includes public-private investment for a total of EUR 300 billion, which will be the basis for the implementation of the Recovery and Resilience Funds. Lastly, Spain has also recently approved its hydrogen roadmap, which is a key technology in order to achieve climate neutrality by 2050. This strategy will mean a key support for the sustainable energy vector by 2050. Among the other legislative changes that have an impact on the electricity sector, I'd like to mention Royal Decree 23/2020, which contains a series of provisions to promote a green economy and recovery from the crisis, in line with the European Union's Green Deal.
I'd like to mention the investments on transmission grid, up to 0.075% of the GDP for the period 2021-2023, as well as measures to guarantee the financial stability of the electricity sector, including the National Fund for the Electricity System, which has just been created. In addition, as far as the regulated business at Red Eléctrica, we have a stable and predictable regulatory framework for the second regulatory period, 2020-2025, which was approved at the end of 2019 by the National Commission for Markets and Competition.
A framework which defines the methodology for the remuneration of transmission and FRR, in line with the previous regulations, maintaining incentives for availability and efficiency, establishing unit reference values adapted to the new investment realities of the period, and provides incentives for the prolongation of the useful life of amortized assets, with 30% of the operation and maintenance costs of these facilities, as well as defining the remuneration for the operator of the system, which we think is great progress in improving the legal certainty of our business as operators. It also defines five debt ratios, which are crucial for us, and which, as we will see later in our CEO's presentation, are fully met. Moving into the telecommunications business, which is our other strategic business, globally, we are seeing an acceleration of data traffic volumes and demand for more connectivity.
In this context, the government approved the plan for connectivity and digital infrastructures, as well as a strategy to promote the deployment of 5G technology. Both plans are part of the digital connectivity, cybersecurity, and 5G deployment project of the plan for the recovery, transformation, and resilience of the Spanish economy. The first chapter of this plan is about extending broadband access to promote territorial coverage, including measures to encourage deployment of broadband in urban centers, less populated areas, rural areas, and care centers, so that 100% of the population will have access to at least 100 MB per second. But that's actually a timeline that is going to be brought forward significantly, thanks to already existing technology. This new context will mean a growing demand for telecommunications infrastructure, as there are more devices connected and growing data volumes.
This will only be possible if our telecommunications infrastructures are secure and reliable and provided by neutral operators. We also like to underscore the strategic value of the neutrality of the technology for Red Eléctrica. We also think that the deployment of 5G, which is the main mobile technology to be deployed over the coming years, and the increasing penetration of fiber optic in homes and businesses will lead to a strong growth of the telecommunications business associated with our activities, including fiber optic and satellites. As you've heard, in the satellite business, we expect very significant growth of the market, but it will be in verticals that are different to those that had predominated up to now.
There will be. We're seeing the appearance of disruptive technologies, and so we're in a turning point, which is something for which Hispasat has prepared with a strategy to face these disruptive changes in the business. The video to home business is now mature, although still has potential in Latin America. But there are other verticals for which Hispasat is effectively positioned, including mobility, both air and maritime navigation, corporate networks, and residential broadband. Now that I've reviewed the framework within which we have designed our strategic plan, I would like to now talk about the contents of the plan for Red Eléctrica and for the electricity sector. The electricity sector has to be a key player and Red Eléctrica, a fundamental actor.
We'd like to say that we are the backbone of the evolution towards the new economy, which will include increasing decarbonization by growing electrification of the economy and increasing integration of renewable energies in the energy mix, reinforced energy efficiency to reduce emissions, while always guaranteeing the security and the quality of supply. Our commitment with the energy transition is very evident, as you will see in the plan that we're presenting, because it has a very special focus on the promotion and development of this change for the energy transition in our country.
And through the different strategic priorities, which we will describe, we will move towards a decarbonized economy and consolidate our position in significant growth vectors, such as our international business, in which we will consolidate our positioning, but also in the telecommunications sector, promoting a corporate culture based on talent and innovation, always maintaining our commitment with sustainability. And in this context and with these priorities, I'm going to give the floor to our CEO, who is going to go into a bit more detail about the contents of the strategic plan.
Thank you very much to our chairperson there, and good morning to all of you. What I'd like to do now is to explain the content of the group's strategic plan for the next five years.
Now, as we've already outlined to you throughout the whole presentation, the purpose of the Red Eléctrica group is to guarantee electricity supply and connectivity in the field of telecommunications by promoting, always through sustainability criteria, fair ecological transition and unlocking the value in neutrality and contributing to social and territorial cohesion. In order to achieve these long-term objectives and our commitment to sustainable development, we will need to carry out a series of actions that I'd like to explain to you in a moment. Now, the transition towards a new energy model and the fight against climate change are key elements of the plan that we are presenting to you today. Red Eléctrica will develop all of the necessary infrastructures included in the new 2021-2026 plan, with the aim of achieving a carbon-neutral economy.
It will also promote the increase in energy storage capacity as a tool at the service of system operation. Now, this will enable greater integration of renewables, avoid unwanted dumping of clean energy in off-peak periods, while providing greater security to the electricity system. Furthermore, Red Eléctrica will operate in an increasingly complex integrated system in Europe. In the regulated business, we are presenting a sustained investment plan for the next five years, in which a higher rate of investment will be reached by the end of the period, and it will continue on beyond 2025.
The estimated investments in the transmission grid amount to practically EUR 2.8 billion and include the development of the actions that are already included in the National Infrastructure Plan 2021 to 2026 in Spain, such as the interconnections between France and Spain, the third interconnection with the Balearic Islands, projects to strengthen the transmission grid, and also renewable energy projects. Now, this figure represents almost 50% of the National Infrastructure Plan, and we're confident that we will have reached a cruising speed in investment in 2025 that will allow us to finalize the future plan in subsequent years. In addition, EUR 411 million will be allocated to storage projects, including the reversible hydroelectric plant on the island of Gran Canaria between the Chira and Soria reservoirs.
Now, this project is currently in the environmental impacts assessment phase, and the construction of the plant is expected to begin this very year and should be commissioned by 2027. In addition, we're working on a second project on the island of Tenerife, which is currently in the study phase, in order to determine its ideal location. Finally, with regard to system operation, the plan is to invest EUR 92 million during this period, earmarked essentially for the development of system operation real-time, as well as new forecasting tools and the cooperation of the latest technologies to address the increasing complexity of the system operation. Now, here are the estimates for the evolution of our key financial figures, such as planned investments in the transmission grid, system operation, and storage, which will amount to EUR 3.349 billion in the period.
As I said, this will be mainly for transmission grid, system operation, and also for storage on the islands. Investment in the transmission grid will account for more than 65% of the group's total investments. And we're including our best estimate for execution by 2025 of the expected 2021 to 2026 infrastructure plan, which was recently presented by the ministry, and that figure amounts to over EUR 6 billion. Our effective performance in this period will be marked by the drop in revenues in 2024 due to the end of the useful life of our Pre-98 assets. Additionally, and this is notable, there is a significant volume investment by the end of 2025 that will not be commissioned until the next remuneration period that will start after 2026. Another strategic line in our group is the consolidation of international business.
The development of this business for Red Eléctrica is really just a natural option to grow in our main business, which is the construction operation of transmission grids. Red Eléctrica has been operating in South America for more than 20 years, where we're managing 4,459 kilometers of lines with excellent availability rates. We have invested more than EUR 1.3 billion in international assets in Peru, Chile, and Brazil. Now, these are countries in which the company has a long-term presence, and we intend to stay there, and new alternatives for businesses have appeared over the last few years due to our solid presence in those countries. The remuneration models in those three countries in which we operate are based on stable and predictable revenue streams over time. Therefore, in Peru and Brazil, the models operate through concessions for 30-year periods.
Revenues are set at the initial bidding stage and are updated annually in the case of Peru and every five years in the case of Brazil, in order to maintain profitability in the face of changes in macroeconomic variables. Now, in the case of Chile, the model works in a similar way, but new transmission grid expansion projects are in perpetuity. An annual remuneration is also set based on the initial bidding stage, and the remuneration is adjusted, taking into account elements such as the inflation in Chile or the exchange rate of the Chilean peso, and after the initial 20 years, the remuneration of the assets continues and is based on the replacement value of those assets, with a remuneration rate that takes into account the evolution of interest rates in the country. Now, this remuneration is reviewed every four years.
Finally, let me remind you of the position that we hold in the Portuguese TSO, REN, in which we own 5% of the capital, and that brings us recurring annual dividends of around EUR 6 million. Over the last few years, the company has generated sufficient critical mass in all of these countries where we are doing business to be able to drive organic development in those same countries. As for the future, our group is committed to the consolidation and growth of the electricity business in Peru, Chile, and Brazil. It will strengthen the group's presence in these countries by consolidating and boosting existing businesses to enable organic development and optimization of the group's assets in operation. Furthermore, we'll be seeking new business opportunities in order to generate new revenue streams.
Therefore, the investment plan for the 2021-2025 period will amount to approximately EUR 225 million and will focus mainly on completing the construction of Tesur 4 and the laying of the second circuit in Cajamarca, Peru, the completion of the construction of the Nueva Pozo Almonte-Parinacota line. That's the substation actually linked to the Redenor project and the expansion of the Sentinel substation in Chile, as well as organic investment in new projects through the Brazilian company Argo. With those EUR 225 million of estimated investment in the period, we're expecting very positive evolution with growth of more than 6% annually until 2025. Now, this will be boosted by work in progress to be commissioned and also unlocking the value of acquisitions made in recent years.
Turning to our telecommunications business now, we've seen that we're finding ourselves in an increasingly interconnected world with ever greater need for data. Now, this will ensure growing demand for telecommunications infrastructures. In addition, the important changes arising from 5G technology and the hyperconnectivity of society itself will also result in an increasingly intensive use of these infrastructures. Thus, the Red Eléctrica group will enhance its telecoms business at an optimal market moment, and it will facilitate connectivity through the deployment of satellite capacity in order to cut down the digital divide and to provide coverage to those more remote and inaccessible territories that fiber doesn't reach. We'll also continue to promote the development of our fiber optic business and develop new opportunities related to 5G, which is a technology with tremendous growth upside.
Investments to develop this kind of action amount to EUR 620 million in satellite infrastructure, mainly to continue growing in market trends, those high-demand segments, mobility and connectivity services, and health, education, and support services for government administration in order to help governments close that digital divide. Another significant part of the investment will be allocated to the launch and marketing of a new Amazonas Nexus satellite. Let me also highlight the fact that Hispasat's solid financial position will allow us to undertake those investments without recourse to shareholders, and nor will we be compromising its financial position. The investment in the fiber optic business and the deployment of 5G mobile network infrastructures in our assets will represent an investment of EUR 115 million during the period. As you all know, the acquisition of Hispasat was completed at the end of 2019.
Since then, we have been working on the development of a new strategy plan that will transform the company to optimize the current business and to take full advantage of all of the opportunities that arise in this sector, which is in a phase of technological change. The aim is to give a more direct service to citizens. At present, Hispasat directly owns nine operating satellites that provide coverage to Europe and the American continent, with a total of 301 transponders and 46 Mbps in service. Hispasat is the leading Spanish communication satellite operator in the distribution of Spanish and Portuguese content. It also maintains a very strong presence on the Iberian Peninsula and in Latin America, where it's the fourth largest satellite operator. It does position itself strongly in high-growth markets and has a stable customer base, strategic customers.
It is currently the 10th leading global satellite operator. Through its powerful fleet of satellites, Hispasat distributes over 1,200 television and radio channels, and it gives coverage to over 20 countries, and it is a key driver in the Spanish aerospace industry, thanks to its highly qualified human team. The future of Hispasat lies in the consolidation of its traditional video and connectivity businesses. It's a leader there in those regions, and it will also start off on a path of transformation to meet new market trends in growth vectors such as mobility and connectivity. The evolution of the company entails the verticalization of the value chain in line with what is being done by other satellite operators, and this will be based on the application of new technologies and partnerships to be able to embrace new services.
Now, in this regard, the company plans to develop new vertical services in other markets such as earth observation or data analytics, as well as gain greater exposure to resilient markets such as defense and government sectors. Growing demand for connectivity in all areas and the political will that exists to offer a quality universal service in rural areas to digitize society makes the combination of fiber and satellite technologies essential. This possibility of combining the technologies is a window of opportunity that will allow Hispasat to maintain and reinforce its leadership within the scope of the Red Eléctrica group. Now, as you know, we are currently working on the design and manufacture of the new Amazonas Nexus satellite. Now, that satellite is expected to enter the testing phase in 2022 and should be fully operational in mid-2023.
The new satellite is based on HTS capabilities in Ku band, which is a more efficient and flexible band, and it's the optimal technology to adapt to the evolving communication market, allowing access to new customers and markets, and providing high-capacity mobility services in the air and maritime transport sector, among others. In addition, it will continue to service existing companies currently using Amazonas 2 capabilities. Now, as we've said before, there is high demand today for this type of capacity, and the evidence is that as of today, this is just two and a half years, still two and a half years before it is launched. This satellite already has a significant pre-launch revenue commitment of more than 20%. The expansion of the satellite business entails investments of EUR 620 million in the period.
The investment will mainly be earmarked on the new Amazonas Nexus, as well as on the evolution of current satellite technology to push it towards the provision of new services through additional investments, either standalone or through regional partnerships with other operators for current investments, to be able to meet the new needs for services of citizens, of consumers today. Essentially, then, the company will start the transformation phase. It will change from being a traditional telecoms infrastructure management company to become a company with a bigger emphasis on ground and mobility services, leading to a proposed EBITDA growth, which will be well over 5% for the period. In addition, still in telecommunications, we will continue to strengthen the development of the fiber optic business.
We'll be broadening its target market by adding new types of customers in the area of regional and local telecoms operators, and we'll be expanding the product portfolio in line with our customers' current strategies. We will also prudently assess potential inorganic growth alternatives through strategic partners to support us in that quest to bring in new markets and/or products. With regard to 5G technology, Spain is currently at a very early stage of development and deployment, especially in rural areas, although it is expected that by 2025 onwards, this will be a reality. Red Eléctrica has assets with business potential to develop this new technology very fast and very efficiently, and therefore, we will take up any opportunity that may come up in the deployment plans in Spain and position our group into a neutral infrastructure supplier.
Investments in the fiber optic business and the development of the new 5G activity by 2025 are expected to amount to EUR 115 million. EBITDA, while depending on certain variables, is expected to grow within a range of 2%-5% annually during that period until the end of the period. From the standpoint of efficiency in a business environment that is ever more demanding, that also is resulting in more scarce and more limited financial resources, to be able to take on the investments stemming from the energy transition and developing new activities for seeing the strategy plan, we'll have to adapt the capital structure of the group and its companies and also respond to the commitment to financial discipline and credit solvency.
In addition to financial efficiency, operational efficiency will also be fostered within the group by generating value through the identification of synergies, process optimization, and the appropriate management of our resources. Finally, after what we have gone through in 2020, resilience and business continuity will continue to be a strategic line to be followed by the group. We will anticipate and ensure we have the necessary means to alert and prevent anything that could endanger the group's comprehensive end-to-end security and the continuity of the group's activities, so talking about the future, it is important for Red Eléctrica to consolidate our role in the innovation ecosystem. Our goal is to promote a position of leadership in innovation in the energy and telecommunication sectors with Elewit as the driving force. We will also be developing entrepreneurship programs as tools for open innovation and cultural transformation.
That will be a way to consolidate the technology monitoring service to understand the impact of disruptive technologies on the group's different businesses and activities. We would also aim to be a benchmark as a healthy company pursuing the complete safety, security, and well-being of the people who work for us in order to achieve healthy working environments from a standpoint of occupational and personal health combined. In addition, we'll be driving the transformation of the Red Eléctrica group by developing an innovative, agile, and collaborative culture based on self-leadership and acting throughout the whole life cycle of our employees to attract the best professionals, develop talent. We would like to anticipate our needs and achieve an organization that's capable of meeting the challenges of the strategy plan in a changing environment. The group's commitment to sustainability ensures the responsible management of its businesses and their sustainability over time.
Through this sustainability, the group hopes to consolidate a business model that will enable it to respond to future challenges and even anticipate them, take advantage of existing opportunities, and consolidate the competitive advantages that have been generated in the group's different businesses over the years. This will generate positive impacts through partnerships with the community. All of this, while making visible and publicizing a central role played by the group in sustainable development and its strong commitment to the decarbonization of the economy. That's why we talk about sustainability in our strategy plan as a lever to drive the energy transition, access to connectivity, and the group's sustainability with a focus on achieving climate neutrality by 2050. As part of our commitment to sustainability, the company has defined four priorities in order to respond to the challenges it faces in the coming years and to capitalize on existing opportunities.
Firstly, to be a proactive player in the energy transition as we move towards an emission-free model. Two, to promote a corporate culture of innovation and flexibility that will allow us to identify opportunities for growth and respond to the challenges of the future. Three, to extend our commitment to responsibility to all links in the value chains and four, to contribute to the economic, environmental, and social progress of our environment, our community. Now, all of these objectives are aligned with the priorities of the strategy plan we're presenting to you today and also with the sustainable development goals, the SDGs adopted by the United Nations. The purpose, then, is that the company's priorities and actions can make a significant contribution to the achievement of those SDGs.
To this end, the company has already conducted a process of identification and prioritization of the most relevant SDGs for the Red Eléctrica group in the countries and sectors of activities in which we operate. Now, if we focus on the group's performance in sustainability, we couldn't talk about our leadership and our commitment, and that is shown in our continued presence in the various global indices and awards and recognitions that we have obtained. All of that endorses our performance and sustainability in this regard. Let me highlight, for instance, that in 2020, the Red Eléctrica group renewed its presence in the DJSI World Index by obtaining 89 points. That's three more than in 2019, and we've re-entered the European index. It's also been recognized as one of the best companies in the world in the field of sustainability in the electricity utilities sector. Una vez.
Now that we've described the basic outline of the strategic plan 2021-2025, I'd like to show you the group's financial commitments for this period. The strategic plan 2021-2025, which we're presenting today, is based on a growth strategy, which from 2025 will begin to reap the benefits of the strong investments in the domestic transmission grid and the other businesses that we will make throughout this period. In this plan, the evolution of the main parameters, including turnover, EBITDA, and net profit, is impacted by the loss of revenue that will take place in 2024 due to the end of the useful life of the Pre-98 assets.
Luckily, the strong boost in this plan of the telecommunications and international businesses will partially offset these drops, meaning that the group in 2025 will be in a very solid position from which to get back on its path to growth of its main metrics, based, of course, on the implementation of various one-off projects that will occur after that. Additionally, the investments connected to the energy transition give the group a lot of certainty and visibility in its strategic targets for the coming 10 years. As for our revenue breakdown by businesses, in 2025, the final year of the strategic plan, the group's metrics will reflect the impact of the strategic priorities defined in the plan.
Red Eléctrica group will continue to have a significant presence in regulated businesses, which will contribute close to 80% of its revenues, but there will be an increasing contribution of the strategic priorities of our international business. Also, the boost in our telecommunication business with high revenue and EBITDA visibility will contribute around 20% to the group's main metrics. And finally, I'd like to mention that our commitment with the energy transition is to be sustained over time with the aim of creating value for all of our stakeholders. To do that, the strategic plan 2021-2025 will be built on the following pillars. First, a significant investment plan for a total of approximately EUR 4.4 billion in the period 2021-2025.
About 75% of this figure will be allocated to investments in the transmission grid, system operation, and energy storage in the islands in Spain, thus contributing to our energy transition as our top priority. Secondly, management based on or centered on operational and financial efficiency, with a target EBITDA margin of 70% by 2025, whilst maintaining solvency ratios of net debt to EBITDA of under five times and FFO to debt of over 15%, so as to maintain a solid credit rating throughout the period. In this sense, we will deploy instruments that will increase the flexibility of the group's financial management in order to guarantee that financial soundness. We will consider instruments such as hybrid debt as part of our financial policy, as well as any other alternative if necessary.
Thirdly, we will consider promoting the value of strategic assets for the company through the potential sale of minority stakes that will allow us to promote and develop those assets and reinforce their value generation capacity. And finally, we will guarantee shareholder remuneration of EUR 1 per share in the period 2020 to 2022 and at least EUR 0.8 per share in the period 2023 to 2025. In this sense, I also have to remind you that the plan does not include the impact of projects that we might be awarded within the recovery plan, which would have a very positive impact throughout the duration of the strategic plan. This concludes today's presentation. Now, we will be happy to answer any questions that you may have. Señoras y señores, si desea hacer una pregunta, debe presionar asterisco 1 en el teclado de su teléfono.
Si desea retirar la pregunta, debe presionar asterisco 2. La primera pregunta. The first question is from Javier Suárez from Mediobanca. Please go ahead.
Yes, hello, good morning, everyone, and thank you for the presentation and for answering questions. My first question is about your CapEx, because I'm still surprised that a company like Red Eléctrica, which in theory has this huge investment plan, is nevertheless still having problems to implement those investments. So your CapEx in 2020 was actually lower than that of the previous year, and there is a significant difference between what is in the government's plans for the infrastructure network and your business plan.
And that obviously has to do with the approval and permit process for infrastructures that I know is particularly time-consuming, but I'd like to understand how the company's proposal will look in order to overcome this, because it's a bit frustrating when there's such rapid change and such a demand for upgraded transmission. Great to see such a difference between the theory behind your investments and what's actually happening. That's my first question. And then the second question is about Hispasat. We've heard about the difficulties experienced by telecommunications and satellite operators because of the competition, fiber. But could you give us some numbers on the kind of EBITDA you're expecting for Hispasat in 2021 and for the end of your business plan? So those four years between the commissioning of a new satellite with new features and the growing competition in the sector.
The third question is why the company has decided not to announce EBITDA growth targets, your EPS, when it's a regulated company mostly, and you have so much visibility in your revenues. Why have you decided not to announce explicit EBITDA and net income growth targets? And if that 1% growth target of your EPS on the basis of 2022 would be still a good reference.
Thank you. Right, thank you very much, Javier. Right, I think, well, actually, your questions are really getting to the crux of the matter. I think as for the investment plan, I believe that we now have a very favorable environment. There are signs that the scenario for the coming 10 years, as we've explained in the presentation, will mean very significant investment volumes over the next decade.
We have the new energy plan with the targets up to 2030, the new plan up to 2026. The government has also made announcements extending the limits for investment in the coming years. So I think the environment, medium and long term, will mean sustained investments for this sector, and we really have to take advantage of that. Of course, there is a challenge surrounding the whole process of approvals and permits, and that does slow down the execution of some of these investments. Right now, we are actually in the most sensitive period, right at the end of a planning period and the beginning of the next, and that's when the investment cycle suffers the greatest impact.
But from the group, we feel that from 2023 or 2024, we will be at investment thresholds that will be clearly above EUR 700 million-EUR 800 million a year, and that will enable us to cover these investment needs for the coming decade very comfortably. Apart from that, from what we've seen of the new draft for the plan, there are also signs that the execution of this plan will be more effective than in the previous ones. I think the ministry has finally taken into account some environmental and technical requirements that will enable the speeding up of some of these processes, particularly the interconnections and the connections between the islands, which have a less complex authorization process than the rest. And so that's also going to facilitate the investment levels that we want to reach.
Internally, we've already launched some internal research in order to anticipate the timeline for the authorization, which we think should come by the end of this year, and we think that by managing, of course, there's another signal from the government, which was the approval of that royal decree to accelerate administrative processes so that in the coming years, and I think really probably definitely before the end of this strategic plan, investment thresholds over EUR 700-EUR 800 million a year, as I've said, which will enable us to fulfill the goals that we've set in the plan and that are in the national energy plan. As for Hispasat, I think it's the case with other sectors and other businesses. 2020 is not a year that can be considered as typical. Everything's pretty circumstantial. I think the company has suffered an impact, of course, as Teresa has explained in the year.
But I think that in 2020, they have done some excellent work. They've really worked very hard on the company's strategic plan. There's some very clear priorities for growing the business, which are going to be followed and which have been included in the strategic plan. If we look in detail at the Hispasat figures for the year, it's true that there's been a fall of their EBITDA of around 10%, but half of that was due to the exchange rate effect. And so our short-term aim of about EUR 130 million in EBITDA, I think we will be achieving pretty quickly. And internally, we feel that 2020 was the turning point for the company. There's one thing we've learned from 2020, that the need for access and broadband is going to be growing. Most consultants and research estimate over 50% growth in demand in the coming decade.
What Hispasat is going to do is to position itself to respond to the demands of these new verticals that will emerge. The Amazonas Nexus is a satellite that will cover that new demand. The company's position, as we explained in the presentation, we think is going to be very favorable for the next years. I said that this new satellite, it's already 20% total capacity already sold, two and a half years away from its launch, and there are talks to raise that 20%- 30%. We're already seeing signs that that demand is clearly there, and these new needs for connectivity will provide excellent tailwinds for Hispasat in the coming years to provide services that require satellite capacity.
And finally, as for the targets you mentioned of net income and EBITDA and our P&L, it's really difficult to give guidance when we still have to see what the impacts of regulatory adjustments on our regulated business will be in 2024, 2025. You know that as well as the adjustment for pre-1998 assets, there's another element to increase remuneration for the maintenance of those same assets. But once we have more visibility on how all those changes are going to work, we will have greater certainty. That's why we haven't given you any guidance on those lines in our P&L towards the end of the strategic plan.
The next question is from Javier Garrido from JP Morgan. Please go ahead with your question.
Hello, good morning. I had a number of questions for you. I will try and summarize them if I could.
The first one, looking ahead to 2025, I think the CEO has just said that the expectation for CapEx will be EUR 700 million-EUR 800 million annually. He said that would be on an annual basis recurring. If that's the case, then the numbers aren't working out for me. Otherwise, we're going to have to wait until 2030 to fulfill the commitment to investment for the 2021-2026 plan if you're talking about EUR 700 million and EUR 800 million, excluding storage. And I don't know whether I'm missing something here or whether there still is some upside there. You still do have some chance to accelerate that target, the EUR 700 million-EUR 800 million you're talking about. And looking ahead to 2025 still, could you tell us the level of fixed assets that you will have by 2025 and how the comparison will work out?
I have a specific question about Hispasat too. In the presentation, you've talked about the investment total. 23%, I think, will be for M&A. Are you including there the contribution of the M&A and the financial results of Hispasat looking ahead up to 2025? Could you perhaps give us some guidance there on M&A? Another part of the question, I'm sorry to stress again, go back to the financial targets you've just heard there. We know there's uncertainty around 2024, but at least it would be, I think, good if you could give us some sort of range, some minimum guidance, if you could, with regard to the numbers you're looking at when we get to 2025, because the figures for the uncertainties are those linked to the pre-1998 assets, aren't they?
Can you give us some guidance there, some range, taking into account different assumptions, perhaps, for those pre-1998 assets? And the very last question I have is about the logical process that you followed to end up with your decision on a dividend, this EUR 0.8 per share. Is that linked to a specific payout ratio, or are you looking ahead to the prospects for 2023, 2025, or are you even looking ahead to 2030? Why? I mean, could you shed some light there on that dividend figure? Thank you. That's fine, yes. Well, thank you very much, Javier, for your questions. First of all, the investment thresholds, quite obviously, we are assuming that the planning will be approved by the end of this year. And once the planning has been approved, we will kick off all of that analysis, the engineering side, and the permitting side of the process.
We think in a period of maybe two to three years, starting off from if we're imagining, of course, that we get that approval at the end of the year, that we will be able to hit those volumes of investment I talked about very quickly, and once we've gone beyond 2025 with all of the planning volume on its way, we do think we will be able to quite clearly go beyond that EUR 800 million figure, but please, I'm just looking at the targets for the 2021 to 2025 period, but of course, once all of the work kicks off of the planning, once we get the permits, we will, of course, be able to quite clearly go beyond that EUR 800 million figure threshold, then your question about fixed assets then, 2025 or ongoing work.
2025 is actually going to be the halfway point for big investment projects, the Biscay-Aquitane project, the interconnects with France, so on and so forth. There will be a lot of volume of work that will be in progress at the time. We think about EUR 1 billion by 2025 will be the figure. The question about Hispasat and M&A. What we've put into the strategy plan for the company is an approach to new growth vectors linked to new technologies. Satellite will also help us with 5G, IoT, HTS. That isn't so much digital infrastructure. These are things that we couldn't do right now. We think that through M&A, we might be able to gain access to the service.
Some of that M&A will be to actually bring in new verticals with strategic partners and also maybe look at some opportunities and partnership to achieve a bigger digital footprint, once again linked to mobile services, which will be when we launch Amazonas Nexus. Some of the strategy plan is linked to the coverage of new demand. And yes, we've included in the growth estimate the 5% EBITDA, which is an annual recurring figure. The other question, asking for guidance about 2024-2025, we have a number of variables in the plan that could perhaps determine what happens there. You know that Red Eléctrica has credibility there with regard to its commitments to the market historically. And of course, a significant part of the plan will depend on the 2021-2026 national plan, whether or not it gets approved.
That will make a difference to the picture of the company by the end of 2025. It also makes a difference to the levels of investment and the commissioning of assets. We would prefer to wait until the approval of the 2021-2026 national plan before making any more commitments. The question about the dividend. I think the dividend policy that we have certainly looked into in depth is perfectly aligned with the current circumstances in which we find ourselves. 2024 to 2025 too, we will be tackling a long period of investment. As of 2024, we would hope that the investment volume will grow quite steeply. That will be at the time when we, of course, will be suffering from the adjustment of the remuneration of those pre-1998 assets. We believe that those are the dynamics.
And we will, of course, be committing and achieve those commitments. We need to have a solid balance sheet, and we need to ensure that the market we're always going to be solvent. So we thought what was consistent with that was to actually adjust the dividend payout policy of the group to the reality and to also look at the investment we're making 2024 onwards. That is what is at the root of the decision. We want to achieve and take on a credible, solid, and solvent commitment long term for the dividend policy.
Next question is from Fernando Lafuente from Alantra. Go ahead.
Yes, hello, good morning. I have to go back to the investments, I'm afraid. I know it is a bit frustrating to see that there's a plan, but then actual investments always fall short of that.
I'd like to understand because you're saying that from the moment that the plan that is currently being reviewed is approved, but if I'm not mistaken, you also have a plan right now where you've also fallen short in investments with respect to your initial targets, so my question basically is, what can you do, and you've spoken about the permit process, but what else can you do to accelerate these things, because otherwise, these targets will never be met because you're talking about EUR 6.6 billion investment, but you're always falling short, so there's always a very big tail, which could endanger that backbone of the energy transition, the connection of renewables, and so on, so I'd just like to have a bit more information about what you think you can do, how you can accelerate those investments, and particularly the permitting processes.
Secondly, you spoke about regulatory uncertainty for 2024, 2025. But can't you provide some targets with a traditional, with a sort of reasonable run rate based on what you know now? That is, what is the real uncertainty around those investments in order to calculate what your P&L targets would be for 2024, 2025, so you can then estimate the payout and so on? Thank you.
Thank you very much, Fernando. I think the big challenge, again, in the strategic plan is to move forward and to accelerate the investment plan, definitely. The challenge is definitely in the permitting process. We do have a milestone, which is the approval of the plan from which we will get to work. We're already working this year with the draft or the proposal that the ministry has published so that we can anticipate some of the timeline.
But I think this permitting problem is something that the ministry is aware of too. So it's a joint challenge which affects all infrastructure operators and managers in Spain. I think the government has taken a step with Royal Decree 36/2020, in which they intend to accelerate administrative processes in order to accelerate the investment process. But again, Fernando, I have to insist on what I said at the beginning. In the plan, in the new plan, we can see clear signs that with certain environmental and technical variables, execution levels will be much higher than in the previous plan. In our strategic plan of EUR 0.8 billion, approximately 40% are for projects that could go through a fast track process versus traditional projects.
I think that by simplifying and speeding up administrative processes and with a more direct management of the projects with national, regional, and local governments, I think we will, within this plan's timeframe, achieve a much higher execution percentage than in the previous plans. But that's really the biggest challenge we have to deal with. And as for the targets for 2024, 2025, there are two elements that prevent us from giving clearer guidance, which has to do with the commissioning volume that will emerge from the new planning. But of course, we have to see how that additional remuneration that we are going to be awarded for operation and maintenance of Pre-98 Assets is going to work. And that's going to have its impact on 2024 and 2025.
So until we have that visibility on when that additional remuneration will come in with a new plan, it's going to be hard to give that guidance.
The next question is from Jorge Guimarães from JB Capital. Go ahead, please.
Good morning. Thank you very much for letting me ask my question. I actually have two, and I apologize that you have another analyst asking about your CapEx plan again, but here I go. My doubt. You're talking about the EUR 9 billion in the plan, but it's EUR 3.3 billion, I think, in the near term. And you've talked about it being pretty much backloaded. But doesn't that really run counter to the expectations for renewable energies and looking at permitting? I think maybe we're talking about 2022, 2026.
If you're preparing the grid or the network for renewables, then I think in the first half of the next decade, they will be up and running. Isn't this all a bit contradictory? Then the second question, you said that you might be able to sell minority stakes in assets. Were you talking about Reintel or other assets? And in Reintel, would it be your Iberian business or also Latin American business? Thank you.
Thank you very much for your questions. First, the CapEx plan. I am still hoping and pretty sure that we will, by 2030, be able to cover the requirements of the national plan. If after 2025, we're talking about higher figures than the EUR 800 million annual investment, I think we should be able to hit those commitments that are being announced now.
We're sure that we can do that if, of course, there is good administrative management on that side. It's not inconsistent with the needs to connect up to the grid renewable energies. I think we will be able to cover that. We've done that so far. We always have done that. Any requests to be integrated into the grid. A lot of those renewables, those generation farms will all be connected in the existing grid, so it's not so critical there to continue to be deploying out new grid for renewables because a lot of those requests for access to the grid are coming to us through the existing grids, and they will be up and running very soon, so we will continue to work alongside all of those new players that want to join us as renewable operators in the Spanish grid.
Then going back to those targets, what we're going to do is kick off a process of analysis to bring in new strategic partners, minority partners, mainly in telecoms. And that will allow us to activate more of the satellite business and Reintel business. I think there are different profiles in those two businesses, but especially in the case of Hispasat, we're looking at perhaps complementing and supplementing the company's capabilities. In the case of Reintel, the strategy to develop the company will help us to unlock the value of the capabilities that we have there in the fiber business, including 5G. Quite obviously, the Reintel business is mainly focused on the Iberian Peninsula. There is a small part of telecoms business in Latin America, which will also be grouped into our analysis.
Next question is from Lillian Starke from Morgan Stanley. Go ahead. Yes, good afternoon.
My first question is about interconnection investments, particularly the ones with France through the Bay of Biscay. When do you plan to start to carry out the investments for that interconnection in your strategic plan, and when do you expect this project to go online? And the second question is about the satellite market, particularly considering the growth that we are seeing in the lower orbit constellations. I'd like to hear how you see the impact of that market on Hispasat's current business or whether you think that could be an opportunity. Lillian.
Thank you very much, Lillian. As for the interconnection with France, it is obviously part, I'd say, an essential part given the needs of the Spanish electricity grid. Developing our interconnection capacity is an essential part of the company's investment plan. We estimate a significant volume of investment for interconnection within the timeframe of this plan.
And we think that the line, the interconnection, should be operational by the end of 2026. So it would be part of those assets under construction that will be developed in 2025 and will bring up additional remuneration in 2026, 2027. As for developing other types of constellations like the low orbit or near orbit satellites, I think these are completely complementary with Hispasat's current capabilities. I think that the new demand for new satellite capacity services can be managed in a complementary fashion with the company's current assets.
But Hispasat, as part of its own strategic plan, will be considering and participating in these initiatives that will provide coverage for new mobility and connectivity services, which are provided by these new constellations, where the company will analyze and assess the possibility of joining in these projects with the aim of covering the new demand for satellite services, which we expect to grow in the coming years.
Ya hemos finalizado con las preguntas por la sala de español. Pasamos ahora a las preguntas de la sala de inglés. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your telephone keypad now. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your line is unmuted. Our first question comes from Harry Wybird from Bank of America.
Your line is now open. Hi everybody. Thanks for taking my questions. I've got three of them. So for the first one, I just wanted to focus on some potential areas of upside that you've mentioned. So you mentioned new stimulus projects. You also mentioned OpEx or maintenance allowances on the pre-1998 assets. Can I just confirm, are these things that are upward only? So am I right to assume that these projects and potentially changes to the maintenance allowances would be purely upside and not downside? And do you think it would be fair to assume that if both of those happen, there could be upside to the EUR 0.8 dividend floor? So that's the first one. And secondly, I just want to ask on potential disposals or, I shouldn't say disposals, divestments or sell downs of your fiber or indeed of Hispasat.
So is that something that's still on the table? Would you still look at doing a combined package like you alluded to in the past? Or has the thinking there changed? And how does that interface with your dividend, i.e., if you were able to make a divestment, perhaps of even a minority stake, could that change your thinking in terms of content of dividend and where you are versus your floor? And then third one, just obviously we're very focused up to 2025, but if you do invest significantly, particularly in the domestic transmission grid, presumably you should see some of the fruits of that investment after 2025. Is there anything you can give us in terms of maybe a rough EBITDA, CAGR, or some other kind of guidance on where growth rates might go in the second half of this decade? Thank you. Perfecto. Gracias, Harry.
Thank you very much, Harry. Turning to what you were saying about the impact of other levers in the plan, there is other impact there that hasn't been included in the strategy plan. As we said at the end of the presentation, the company is involved in a number of different initiatives linked to the resilience recovery plan in Spain, projects that are associated with connectivity, for instance, in telecoms, the deployment of new generation renewables in Spain too, and these drivers, these impacts, as you were saying, are not taken into account in the strategy plan, so if they do become reality, they would be an upside on top of the scenario that we've presented to you today, and then the recognition of additional remuneration for O&M for pre-1998, that's already included. That's part of the regulatory framework that was approved back at the end of 2019 in Spain.
What we have to see, this is a newly implemented measure, so we have to see what the final outcome will be, but we have included an estimate there in our strategy plan, and obviously, when we were looking at the possibility of bringing in a strategic partner for any of our business activities, yes, we do have this scenario right now. But if any of this will generate extra value for the company, something that we haven't put into our strategy plan, we would, of course, have to analyze again our dividend policy that we had defined for the plan, and if we had to reconsider that payout, we would, because at least the EUR 0.8 per share is the minimum. That's a commitment, and as you know, one of the top priorities of the group is to generate value for all of our stakeholders, including our shareholders.
So if and when possible, if any of those drivers that we put in the plan does actually kick off, but that hasn't been included in the financial scenario, we would be able to reconsider that dividend payout. And then looking ahead beyond 2025, yes, it's true that the end of 2025 will bring us into a second period for the company, the second half of that decade, which looks like it's going to be positive for the company. But remember, there will be a second regulatory period that will kick off as of 2026, which will once again consider remuneration variables that affect us as a group. So it's perhaps a little, it would be too risky, too much guesswork to look ahead to that period yet.
But given the volume investment and the fixed assets will be under construction by 2025, we do think that in that second remuneration period, 2026 to 2030 in Spain, that the trends in our key financial figures will definitely be positive.
Our next question comes from Antonella Bianchessi from Citi. Your line is now open.
Hello, good afternoon. Just a quick follow-up on the dividend policy. Your payout today is in the region of 80%, which is way below your peers. We have seen rating agency easing the criteria for the rating for a company that has a long-term CapEx plan that is yielding returns in the very long term. You have talked about hybrid. So can you elaborate on which level, which type of balance sheet you need in order to keep your EUR 1 dividend?
Can you also elaborate on the hybrid, if this is something that is just hypothetical or if there is an actual plan in this, considering today's market conditions? And also, would you prioritize the maintenance of the dividend or rather than disposal or corporate action in order to maintain a stable dividend policy? Bueno, muchísimas gracias.
Thank you very much, Antonella. Let me take the point on dividends there. We've done a lot of thinking about our dividend payout policy, but there's quite a clear commitment that we've always maintained as a group, and that is that we are strongly committed to our financial solid balance sheet and the long-lasting financials, obviously, particularly when we are moving into a high-volume investment period. And we will need to ensure that we do have the financial resources to cover that plan. We have that firm commitment. We've always had that firm commitment.
I think that we are taking those steps to consolidate that strong financial position by looking at that possibility of a hybrid debt structure, which is, I think, quite common practice in markets in current circumstances and throughout the strategic plan. In any of those years in which we may have more refinancing to do, we might have to turn to hybrid debt financing to be able to ensure that we can keep that commitment to our solid financial position. The philosophy behind the dividend and the payout policy is that we also do want to be consistent there and keep up a payout policy that continues to bolster our balance sheet strength so that minimum EUR 0.8 per share also reflects that desire to continue to bolster and build up our balance sheet in the company. I think that these two things really match up.
We will be making a huge volume investment over a number of years, over the next 10 years, really. At the same time, we have to generate a sustainable balance sheet structure that will be able to cover all of those financial requirements that we already know about and that we may have to deal with that we don't know about. We have to always respond to what happens, but always with that commitment to keeping up our credit rating as usual in the group. That's the commitment, at least EUR 0.8 per share. There may be other levers, as we were saying before, maybe unlocking the value in our assets, those drivers that will give us a side that we may be able to activate in the strategy plan so that the minimum EUR 0.8 per share could be reconsidered.
But always, we have to remain committed to those serious financial commitments. One of the commitments is the EUR 0.8 payout. I think it's all consistent with the financial balance sheet that we need, that strong position to be able to do with the commitment we need.
Our next question comes from Olivia Van Dusselaer from Exane. Your line is now open.
Yes, hello everyone, and thank you also for taking my question. I have a couple. One, when you talk about keeping the strength of your balance sheet, you talk about some measures such as hybrids or selling minority stakes. Would you also consider the possibility of a capital increase at some point, or is that something that you could already today rule out during the next five years? And then the second question is on Hispasat. You plan to do around EUR 300 million of investments in services.
I wonder what type of investments those are. Is that an additional satellite, or what type of CapEx would actually come out of that one? And then the third question, I think you previously gave a guidance for net income in 2022, which was around EUR 700 million. I wonder if that guidance is still valid today. Thank you. Muchas gracias, Olivia.
Thank you very much, Olivia. As for your first question, no, in this current timeframe for the strategic plan, we're not considering a capital increase. We believe that our balance sheet with the actions we are planning will fully support the investment plan for this period and whatever might come next. So for now, we're not considering that alternative. But of course, if there were some strategic M&A opportunity, we might reconsider this alternative.
But in principle, no, we're not considering that possibility because we think the balance sheet can easily sustain our investment commitments. As for the Hispasat investment, the EUR 300 million, well, they're allocated for covering the new demand that the company does not currently have the capacity to cover. And there, and as other satellite operators are doing, the company will analyze co-investments in satellites, partnerships or alliances with other operators, acquisitions in the video business value chain. So we're open to these new cooperation strategies that are developing between different actors in the sector in order to cover this demand for which we don't currently have capacity. And as for the guidance for 2022, if you mean investments, we're thinking that those investment volumes may be reached a bit later once the plan is approved by the end of this year.
In 2022, 2023, 2024, for certain, we will be at those investment levels. In 2022, with a plan just approved, it will be very difficult to reach those levels. Señora delegado, directora general, bueno, pues tras estas preguntas.
Well, thank you very much to the CEO and the CFO and the chairperson. We've finished the audio questions now, but we've had some questions come in through the webcast. I think after that quite intense Q&A session that we've had just now, some of the questions that have been sent in will probably be repetitive. They will repeat the questions that we've answered. I do actually believe that nearly everything that has come in in written form has been answered. Fernando García from Royal Bank of Canada has asked a number of questions stressing the CapEx issue, which has been answered over and over again already in the Q&A session.
Work in progress was another point that he raised. It's also been answered. We also have a question from UBS about CapEx. I think that is the most repeated question. And we've also had other questions about dividend policy, which you've already heard has been answered. Thank you so much to you for your answers. And I believe we've covered all of the questions that come in through the webcast. So I think we can bring today's session to an end. Thank you very much to all of you for joining us.