EDPR will invest €20bn until 2026 to boost renewable additions, forecasting to add more than 4GW per year in capacity over the period and doubling installed capacity in solar and wind.
The move came as the company presented its revised Business Plan 23-26 in London, with the group aimingto allocate 85% of the total investment to renewables, clients and energy management and 15% to electricity networks across fast growing and low risk markets in Europe (40% of the investment plan), North America (40%), South America (15%) and Asia-Pacific (5%).
“Today we ramp up our ambition to lead the energy transition supported by a competitive and resilient portfolio, strong financials, an empowered team and the will to contribute to a climate positive world for the coming generations,” said EDP and EDPR CEO Miguel Stilwell d’Andrade.
“This Business Plan reinforces our growth ambition, while pushing even further our commitment to the planet and creating superior value for all.”
Onshore wind and solar utility scale will account each for 40% of the €20bn, complemented by emerging technologies such as solar distributed generation, storage and hydrogen. Offshore wind capacity will scale up through the joint venture Ocean Winds and provide significant visibility on growth over the next 10-15 years.
With the recent acquisition of Kronos and the company’s activity across the globe, EDPR is set to continuing to capture growth in solar. The technology mix by 2026 will have a share of 29% solar and 8% solar distributed, while wind will represent 59%, wind offshore 2% and the remaining mix diversified through H2 and Storage.
EDPR aims to continue to deliver strong earnings growth, targeting an EBITDA of €3bn during 2026 and recurring net income of €0.9bn.
In order to partially finance its investment plan, EDP Renewables intends to raise equity and entered into an investment agreement with Lisson Grove Investment Pte Ltd, an affiliate of GIC Pte Ltd, Singapore’s sovereign wealth fund and a leading global long-term investor, in which the latter committed to subscribe around €1bn worth of new shares in a capital increase.
EDPR’s updated Business Plan also predicts 1500 new hires by 2026, basing the talent strategy on attraction, experience and development and renewing its recognition as a top employer across the regional hubs.