EDP ​​will increase its investments to 25,000 million euros until 2026 to promote renewables

MADRID, 2 Mar.

EDP ​​will increase its investments to 25,000 million euros until 2026 to promote renewables


EDP ​​will increase its investments to 25,000 million euros between 2023 and 2026 to promote renewable energies, strengthen its position in electricity networks and advance in the energy transition, as stated in the 2023-2026 business plan updated by the Portuguese group.

In said plan, which the company will present this Thursday in London, EDP reaffirms its commitment to zero net emissions and announces a 30% increase in its annual investment rate, up to 6,200 million euros for each year of the 2023-2026 period.

Of the 25,000 million euros that it plans to invest until 2026, EDP will allocate 21,000 million euros to renewable energies and 4,000 million to electricity networks in fast-growing and low-risk markets.

EDP's investment plan combines conventional and emerging technologies. Thus, onshore wind and commercial-scale solar will each represent 40% of the 21,000 million planned investment in renewable energy.

This will be complemented by investments in emerging technologies, such as distributed solar generation (12%), storage and hydrogen (3%). For its part, offshore wind energy will represent 5% of EDP's investments in renewables, with an increase in capacity through Ocean Winds.

The Portuguese group has indicated that the deployment of renewable energies will increase to 4.5 gigawatts (GW) per year, to exceed 18 GW gross by 2026, with the aim of reaching a renewable energy installed capacity of 33 GW in 2026 and more than 50 GW in 2030.

In the electrical network segment, for which an investment plan of 4,000 million euros is committed, EDP will continue to grow and diversify its portfolio. The updated business objectives include reaching 400,000 kilometers of distribution lines, nine million smart meters and 12 million connection points.

"This business plan reinforces our ambition for growth, while further boosting our commitment to the planet and the creation of superior value for all", highlighted Miguel Stilwell d'Andrade, CEO of EDP.

"We reiterate our commitment to go coal-free by 2025 and degenerate to 100% renewable energy by 2030, with a goal of net zero emissions by 2040," the company stressed.

Likewise, EDP will invest a total of 3,000 million euros in innovation and digitization until 2026.

EDP's updated business plan foresees 3,000 new hires by 2026, reaching 14,000 employees, with 31% women in leadership positions.

The group now expects to reach 7,000 million euros in revenues and capital gains by 2026, while it expects to obtain, by 2026, a recurring Ebitda of 5,700 million euros and a recurring net profit of between 1,400 and 1,500 million euros.

At the same time, it has announced an improvement in its dividend policy, so that the minimum dividend per share will gradually increase from 0.19 to 0.20 euros, while the pay-out target will be revised to 60- 70%

EDP ​​has also announced this Thursday the launch of a takeover bid (OPA) of 100% of its listed subsidiary EDP Brasil, 56.05% owned, to acquire the shares held by minority shareholders.

In order to finance the takeover bid, EDP intends to raise its own funds, through the increase in share capital, for an amount of 1,000 million euros.

The launch and completion of this transaction will be subject to corporate approvals and compliance with favorable market conditions.

EDP ​​has stated that it already has a commitment from CTG, ADIA and GIC for an aggregate amount of up to 600 million euros, subject to final market conditions.

The company expects EDP Brasil's delisting to conclude in the second half of 2023.