German energy network operator E.ON has announced an investment target of €42bn ($46bn) to modernise Europe's energy infrastructure between 2024 and 2028.

The latest investment target is a 30% increase compared with the previous plan for 2023–27.

The decision underscores Europe’s urgent need to upgrade its grids to accommodate a growing number of renewable energy sources.

A significant portion of the investment – €34bn – is allocated to the energy network business, with Germany alone set to receive €25bn.

€5bn will be invested in energy infrastructure solutions.

E.ON CEO Leonhard Birnbaum stated: “What Europe needs now is intelligent energy infrastructure for sustainable, secure and affordable energy. This is exactly what E.ON delivers, and we continue to systematically pursue this course.

“This means that we will continue to make massive investments to meet the rapidly growing demand for energy infrastructure, but it also means that we are leading the way where others are hesitating. Playing a pioneering role in the energy transition makes E.ON strong.”

The increased investment will drive E.ON's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to €11bn by 2028.

E.ON reported a 16% increase in adjusted EBITDA to €9.4bn compared with the previous year.

Adjusted net income also saw a 12% rise, reaching €3.1bn.

The energy company plans a dividend increase to €0.53 per share for 2023, up from €0.51 per share in 2022.

Looking ahead to 2028, it expects adjusted group earnings to exceed €11bn.

However, E.ON predicts a slight dip in adjusted EBITDA for 2024, estimating figures between €8.8bn and €9bn, down from €9.4bn in 2023.