New Alteo Strategy for Regional Expansion

The Hungarian energy company Alteo has published its business strategy for the period 2025-2030, the implementation of which would provide the energy service and trading company with significant growth both geographically and financially, the company told MTI on Thursday.

The company's results over the past three years have significantly exceeded the targets set in its 2022-2026 strategy, with its actual EBITDA in 2023, for example, nearly double the target for 2026, and the volume of planned capital investment 20% higher with projects approved by the end of 2024, it said.

The update of the strategy not only took into account that the company has made good use of market opportunities and exceeded its targets well ahead of time, but also that its majority ownership, with its presence in foreign markets, market knowledge and network of contacts, offers significant potential for regional expansion and synergy opportunities.

To achieve its strategic objectives, Alteo aims to invest up to EUR 2-2.5 billion and has set an EBITDA target of EUR 300 million by 2030, they said.

Energy remains the focus area of Alteo's revised strategy, in which it will continue to lay the foundations for growth by continuously developing market-leading digitalization and knowledge-based complex generation management solutions, expanding its renewable portfolio and exploiting synergies within its ownership base in maintenance and operations and energy trading activities, in addition to new business acquisitions.

In the circular economy, Alteo is aiming to scale up its competences and activities across the waste management value chain, and to further increase the share of materials returned to the cycle by integrating new technologies and material streams, such as spent batteries or solar panels.

A new element of the newly published strategy is the objective to enter specific markets in the Central European region, in addition to expanding its presence in the domestic market.

This is to be achieved by expanding its own renewable portfolio both domestically and regionally, with the aim of building a regional green portfolio with a total capacity of 1,500-2,000 megawatts (MW) by the end of 2030.

The strategic plan is also to extend Alteo's generation management services and operation and maintenance capabilities to regional countries and to strengthen its retail and wholesale presence there.

In the circular economy, the company's primary objective is to become a leader in its home market, after which opportunities for expansion abroad may be explored.