Our mission is to continue to develop and enable renewable energy systems that are economically viable. Our vision is to lead the transformation to renewable energy. We want DONG Energy to maintain a global leading position in offshore wind and be recognized as a leader in European energy more generally. We are committed to continuing the transformation of our business, tailoring it to the new market conditions in the European energy industry.
Our strategy focuses on identifying and growing the areas of activity in which we have strong competences, and in which we can make value propositions that differentiate us from our competitors. Our strongest and most differentiated competitive positions are within offshore wind power and this is where we see the biggest potential for long-term growth and value creation. We aim to build a bridge from fossil fuels to an increasingly decarbonized future and further reinforce our position as a global leader in offshore wind. Investments to support future growth will be focused on renewable energy. Based on our current plans, in the period from 2016 to 2020, we expect to allocate approximately 80% of our gross investments to Wind Power, approximately 10% to 15% to our Danish utility activities, which include our Bioenergy & Thermal Power business and our Distribution & Customer Solutions business, and approximately 5% to 10% to our Oil & Gas business. In 2016, we expect to invest DKK 18 to 21 billion and in the period from 2017 through 2020 we expect to invest DKK 60 to 70 billion.
We track the progress of our strategy through a number of financial and strategic targets, divided into four themes:
Creating shareholder value
- Average expected range on return on capital employed ("ROCE") for the Group of 12% to 14% in the period from 2017 through 2020 (including ROCE for Wind Power of 13% to 15% and ROCE for Distribution & Customer Solutions of 9% to 11% in this period);
- Bioenergy & Thermal Power to be free cash flow positive from 2018 onwards; and
- Oil & Gas to be free cash flow positive, including our hedging positions, from 2017 onwards;
Addressing profound societal challenges within energy and environmental matters
- CO2 emissions of no more than 260 g/kWh by 2020;
- Installed offshore wind capacity of 6.5 GW by 2020;
- Continuing to reduce the LCoE for offshore wind; and
- Reducing coal consumption in our Danish power plants and increasing the use of biomass, with the target that bio-conversion of at least 60% of our Danish heat capacity is completed by 2020.
Serving the energy needs of our customers
- A continued customer satisfaction score of more than 80 (on a scale from 0 to 100, with 80 or above reflecting very satisfied customers) for our power distribution business, and more than 80 and 75 (on a scale from 0 to 100, with 75 or above reflecting very satisfied customers) for our B2C and B2B businesses, respectively, by 2020;
- A reputation index score of more than 55 (on a scale from 0 to 100, with 55 or above reflecting a broad recognition of the Group in the Danish market) by 2020; and
- A SAIDI for our power distribution business equal to, or better than, the Danish power sector average.
Being a safe and great place to work
- Lost time injury frequency ("LTIF") of less than 1.5 by 2020;
- No fatalities;
- Employee satisfaction and motivation score of no less than 77 (on a scale from 0 to 100, with 70 or above reflecting above-average satisfied and motivated employees) by 2020.