EDP to invest EUR 12bn through 2022, mostly in renewables

Portuguese utility Energias de Portugal SA (ELI:EDP) plans roughly EUR 12 billion (USD 13.6bn) of investments over the next four years and about 75% of that will be directed towards renewable energy.

The company said on Tuesday that it will increase its annual capital expenditure (CAPEX) to EUR 2.9 billion in the period 2019-2022, up by about 60% compared to 2016-2020. It intends to secure over EUR 6 billion for that plan through asset rotations and disposals.

EDP will be looking to add up to 8 GW of renewable energy capacity through 2022, including: 5 GW to 5.5 GW of onshore wind and 1.5 GW to 2.0 GW of solar photovoltaics (PV). It also eyes between 0.2 GW and 0.3 GW of offshore wind, with 2 GW gross that should achieve commercial operation by 2025. The plan also includes 0.1 GW to 0.2 GW of hydropower.

The utility had about 21 GW of installed renewables at the end of 2018, with hydropower accounting for 45% and onshore wind and solar together reaching 55%.

When it comes to offshore wind, the company has a 33.3% interest in the 950-MW Moray East project in UK waters and a 29.5% stake in the 992-MW Noirmoutier & Le Treport developments in France. It is also 67%-invested in the up to 800-MW Moray West project. In the US, EDP is preparing the up to 1.6-GW Mayflower scheme for a power purchase agreement (PPA). It has a 50% stake in that early-stage project.

For 2018, the company reported a recurring net profit of EUR 797 million, up by 3% on the year thanks to growth in its renewables arm and in Brazil. Last year, EDP’s renewable energy capacity grew by 2% and now represents 74% of the group’s total capacity. Renewable power production rose by 22%.

(EUR 1.0 = USD 1.130)

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